HIGH COURT OF ORISSA : CUTTACK
B.N. MAHAPATRA, J.
Executive Engineer Electrical (NESCO), Baripada Electrical Division, AT/PO: Baripada, Dist: Mayurbhanj & another … Petitioners
Versus
Chairperson, Permanent Lok Adalat (P.U.S.), Mayurbhanj, Baripada and another … Opp. Parties
W.P.(C) No. 12891 of 2012
Decided on : 14.2.2013
Lok Adalat - Public Utility Services - Sections 22A, 22B, 22C, 22D, 22E - The court considered the establishment and functioning of Permanent Lok Adalat (PLA) and its jurisdiction in cases relating to public utility services. It emphasized the importance of conciliation and settlement in resolving disputes and highlighted the powers and procedures of PLA in deciding disputes on merit. The judgment clarified the role of PLA as a conciliator and an adjudicator, and the finality and binding nature of its awards.
Fact of the Case:
The petitioner sought to quash an award passed by the Permanent Lok Adalat (PLA) in a billing dispute with the respondent, a consumer of electricity. The respondent's service line was disconnected due to non-payment of arrear dues, and the petitioner continued to send electricity bills. The respondent approached the PLA with a prayer to implement a previous order, change the tariff, and seek compensation and litigation costs.
Finding of the Court:
The court found that the PLA had the power to decide the dispute on merit in the absence of consent from both parties, as provided under Section 22C(8) of the Act, 1987. However, it noted that the PLA failed to comply with the requirements of Sections 22-C(7) and 22D of the Act, 1987, violating the principles of natural justice. The impugned award was set aside, and the matter was remitted to the PLA for a fresh hearing.
Issues: The issues before the court included the jurisdiction and authority of the PLA to decide disputes on merit, the compliance with principles of natural justice, and the finality and binding nature of PLA awards.
Ratio Decidendi: The court held that the PLA has the power to decide disputes on merit in the absence of consent from both parties, as provided under Section 22C(8) of the Act, 1987. However, it emphasized the importance of complying with the principles of natural justice, objectivity, fair play, and equity, as required under Section 22D of the Act, 1987. The court also clarified the finality and binding nature of PLA awards.
Final Decision: The impugned award was set aside, and the matter was remitted to the PLA for a fresh hearing, with directions for the parties to appear before the PLA and produce a certified copy of the judgment. The PLA was directed to dispose of the matter in accordance with the observations made in the judgment and pass an appropriate order within four weeks from the date of production of the certified copy of the judgment.
JUDGMENT
B.N. MAHAPATRA, J. This writ petition has been filed with a prayer to quash the award dated 12.06.2012 passed by the Permanent Lok Adalat Mayurbhanj, Baripada in P.L.A. Case No.5 of 2012 under Annexure-3 wherein the application filed by opposite party No.2-Suresh Chandra Acharya has been allowed in part on the ground that the impugned order is illegal, arbitrary and without jurisdiction/authority.
2. The facts and circumstances giving rise to the present writ petition in a nutshell are that present opp. party no.2 is a consumer of electricity under the petitioner-Company vide Consumer No. BG 2-611C. Opp. Party No.2’s service line was converted to commercial category from domestic since long. His service line was disconnected on 21.2.1997 due to non-payment of arrear dues of Rs.15,533/-. After disconnection of power supply on 21.2.1997, petitioners went on sending electricity bill as a result of which the arrear increased to Rs.1,33,830/-up to November, 2003. Thereafter opp. party no.2 approached the then Bijuli Adalat, which passed an order on 8.1.2004 in B.A. No.57 of 2004 directing S.D.O., Electrical, Betanoti( NESCO) to revise the energy bill deducting the amount claimed for the alleged disconnection period. On the same day, i.e., 8.1.2004 the opp. party no.2 deposited an amount of Rs. 1,000/-and was directed to pay the revised arrear amount in full before the power supply is restored to his premises. The consumer-opp. party no.2 also deposited Rs.5,000/-on 29.3.2005 towards part payment of the arrear bill. Despite the same, neither the power supply was restored nor revised bill was issued or change of tariff was done. Ultimately on 25.2.2006, reconnection was made after deposit of Rs.1050/-, which includes CRF of Rs.50/-, but the tariff was not changed though he deposited Rs.100/-on 18.7.2006 for the said purpose. Again for non-payment of arrear dues, notice for disconnection of power supply was issued and after receipt of the notice for disconnection of power supply against the arrear bill of Rs.1,83,102/-up to February, 2012, the opposite party No.2-Consumer approached the Permanent Lok Adalat ( for short, “PLA”) in PLA Case No.5 of 2012 with a prayer to implement the order of Bijuli Adalat dated 08.01.2004 passed in Case No. BA 57 of 2004; to change the tariff from commercial to domestic with effect from 18.07.2008; to pay a sum of Rs.1.00 lakh as compensation for mental agony, harassment and trouble; and to pay Rs.10,000/-towards the cost of litigation. Pursuant to notice issued to the petitioners in PLA Case No.5 of 2012, the present petitioners remained present on 07.04.2012 and filed a memo stating therein that they were unable to attend the PLA as they are extremely busy in settlement of the disputes of various consumers under the One Time Settlement Scheme which was going on then. They also suggested to advise the consumer to avail the benefit of exemption of certain amount under the said One Time Settlement Scheme and accordingly requested to drop the PLA Case No.5 of 2012. Despite the same, the PLA has proceeded in absence of the petitioners and only after hearing opp. party no.2-consumer has passed the impugned order as a common law forum. In the said award dated 12.06.2012, the PLA while directing the petitioner-Company to revise the electricity bill of the consumer by changing tariff structure from commercial to domestic with effect from 18.07.2006 and to reconnect the electric service line to the consumer’s premises within seven days, has also directed the petitioner-Company to pay Rs.30,000/-only to the applicant-consumer towards compensation for the alleged mental agony and harassment within a period of two months from the date of award. Hence, the present writ petition.
3. Mr. S.C. Dash, learned counsel appearing on behalf of the petitioners-Company submitted that the impugned order has been passed ex parte relating to a billing dispute of opp. party no.2-consumer of electricity under the petition
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