Back
1999 Supreme(Mad) 453
High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE K. GOVINDARAJAN
Madras Cements Ltd., having is Corporate office at Auras Corporate Centre
Versus
State of Tamil Nadu, rep. by Secretary to Government., Energy Dept., Madras-9 and others
Writ Petition Nos. 12540, 12894, 14315, 14328, 15352, 15835 15857, 16499, 16500, 17033, 18082 of 1997 and batch
Decided On : 23-04-1999
C.S. Krishnamoorthy, Mr A. Kumaraswamy, Mr.K. Ramagopal, Mr.B. Christdas, Mr.V.R. Rajeswaran, Mr.T. Ravikumar, Mr.K. Chandrasekaran Advocates for Petitioners. Mr. R. Nagarajan, Government Advocate for Respondents in all W.Ps. Mr. R. Thiagarajan, Senior Counsel for Mr.N. Muthusamy Advocate for Respondent.
The expression "set up" in the context of tariff concession for High Tension industries means ready to commence business or ready to start functioning.
Headnote:
ELECTRICITY - TARIFF CONCESSION - HIGH TENSION INDUSTRIES - WITHDRAWAL OF CONCESSION - INTERPRETATION OF EXPRESSION "SET UP" - PROMISSORY ESTOPPEL - APPLICABILITY.
Fact of the Case:
The petitioners approached the court with identical grievances on the letter of the 2nd respondent-Electricity Board, informing them that the 1st respondent-Government had clarified the expression "set up," as it means the date of service connection. Some of the petitioners also challenged the validity of G.O.Ms. 17, Energy dated 12. 1997 under which the concession granted in G.O.Ms.No. 29 Energy, A-2 dated 31. 1995 had been withdrawn.
Finding of the Court:
The court held that the expression "set up" would mean only ready to commence business, or ready to start functioning. For the purpose of the present case an industry has set up should be construed as having reported their readiness to the Electricity Board for getting power connection, irrespective of the fact whether actual power supply is given or not.
Issues: 1. Whether the interpretation given by the Government and the Electricity Board with respect to the expression "set up" for the purpose of giving effect to the Government Orders dated 31. 1995 and 12. 1997 is correct? 2. Whether the petitioners are entitled to enjoy the tariff concession for the full period of three years, according to the Government Order dated 31. 1995? 3. Whether the Government Order dated 12. 1997 withdrawing the said concession is valid? 4. Whether the petitioners can challenge the withdrawal of the tariff concession as they have no right to get concession? 5. Whether the petitioners can sustain their prayer on the ground of promissory estoppel?
Ratio Decidendi: 1. The expression "set up" would mean only ready to commence business, or ready to start functioning. For the purpose of the present case an industry has set up should be construed as having reported their readiness to the Electricity Board for getting power connection, irrespective of the fact whether actual power supply is given or not. 2. The petitioners who had informed about their readiness for getting power connection or made applications to the 2nd respondent-Electricity Board on or before 12. 1997, are entitled to enjoy the said tariff concession for the full period of three years, from the date of giving power connection as stipulated in G.O.Ms.No. 29, Energy (A-2), dated 31. 1995. 3. The Government Order dated 12. 1997 withdrawing the said concession is valid. 4. The petitioners cannot challenge the withdrawal of the tariff concession as they have no right to get concession. 5. The petitioners can sustain their prayer on the ground of promissory estoppel only if they are able to establish that they have altered their position pursuant to the said amendment in the Government order dated 31. 1995.
Final Decision: The writ petitions in which the G.O.Ms.No. 17, Energy dated 12. 1997 is challenged are dismissed. The writ petitions in which the petitioners who have not made applications or sent intimation, regarding their readiness to the 2nd respondent-Electricity Board to get power connections on or before 12. 1997, filed claiming that they have altered their position by establishing the industry on or before 12. 1997 only to get advantage of the said Government Order dated 33. 1995, in which tariff concession was given, are also entitled for such tariff concession as stipulated in G.O.Ms.No. 29, Energy dated 33. 1995, provided if they are able to establish the same before the 2nd respondent-Electricity Board.
1. In this group of writ petitions, the petitioners have approached this Court having identical grievance on the letter of the 2nd respondent-Electricity Board, informing the petitioners that the 1st respondent-Government have clarified the expression set up, as it means date of service connection. Some of the petitioners have also challenged the validity of G.O.Ms. 17, Energy dated 12. 1997 under which the concession granted in G.O.Ms.No. 29 Energy, A-2 dated 31. 1995 had been withdrawn. It is also brought to my notice that some of the petitioners who filed writ petitions aggrieved by the said letter of the 2nd respondent referred to above, have filed petitions to amend the prayer, to set aside the said G.O.Ms.No. 17 Energy, A-2 dated 12. 1997.
2. The petitioners have come forward with the plea that pursuant to the issuance of G.O.Ms.No. 29 Energy (A-2) dated 31. 1995, they have started to establish the industry with a view to get tariff concession as mentioned therein and ultimately they have set up the industry but due to some reason or other giving power connection was delayed beyond 12. 1997 which resulted in refusal by the respondents in extending infancy benefit made available as a tariff concession by the Government, in Government Order dated 31. 1995. This had happened due to the clarification of the 1st respondent with respect to the term set up, as the petitioners did obtain H.T. Service Connection on or after 12. 1997.
3. To provide supply, distribution, transport and price of articles and trade, commerce therein, and requisitioning of property, the Tamil Nadu Essential Articles Control and Requisitioning Act, 1949 was enacted, Section 2(a) of the said Act defines "essential article" which means any article specified in the Schedule to the said Act. "Electrical energy" has been specified in the said schedule. In view of the above, the 1st respondent-Government are empowered to notify orders, to regulate or prohibit the supply and distribution of electrical energy and also have control over the trade and commerce therein. Thereafter in 1979, to provide for revision of tariff rates leviable on the electrical energy supplied in the State of Tamil Nadu by the Electricity Board, the Tamil Nadu Revision of Tariff Rates on Supply of Electrical Energy Act 1978 was enacted, which came into force from 3. 1978. Under section 3 of the said Act, the State Government are given power to amend the provisions of Schedule to that Act, after taking into account the cost of production of energy and such other matters as may be prescribed by notifications. Till 1979 in exercise of powers conferred by Section 3 of the Madras Essential Articles Control and Requisitioning (Temporary Powers) Act 1949, the State Government notified the revision of tariff and condition of supply including concessional tariff to the consumers. After 1979, exercising powers under Section 4 of the Tamil Nadu Revision of Tariff Rates on Supply of Electrical Energy Act, 1978, the Schedule to the Act was being amended from time to time.
4. Exercising such powers, the 1st respondent, by issuing G.O.Ms.No.29 Energy (A2) dated 31. 1995 amended the Schedule by substituting the Schedule mentioned therein. The following is the portion of the Schedule, which is relevant for the present cases:
"High Tension Tariff I:
Registered factories, tea estates, textiles, railway tractions, fertilisers, Salem Steel Plant, Heavy Water Plant, Caustic Soda, Calcium Carbide, Aluminum Pottassium Chlorate and all other industrial establishments.
Area Rate per KWH Rate per KVA of maximum demand per month
1 2 (in paise) 3 (in Rupees)
Madras Metropolitan 250 100
Non-Metropolitan 240 100 Tariff concession for High Tension Industries coming under High Tension Tariff:
(a) In the case of the new High Tension Industries to be set up in the areas other than the Madras Metropolitan areas the following concessional tariffs shall be charged for the first three years from the d
