IN THE HIGH COURT OF ALLAHABAD
V. K. KHANNA, K. K. BIRLA
MODI INDUSTRIES LIMITED (STEELS), MODINAGAR, GHAZIABAD - Appellant
Versus
EXECUTIVE ENGINEER.ELECTRICITY DISTRIBUTION DIVISION, MODINAGAR, GHAZIABAD - Respondents
C. M. W. 2628 Of 1986
Decided On : 07/26/1991
ELECTRICITY ACT - COAL VARIATION ADJUSTMENT, FUEL GAS VARIATION ADJUSTMENT, FUEL SURCHARGE - VALIDITY - ADDITIONAL CHARGES IMPOSED BY NOTIFICATIONS U/S. 49 (1) OF THE ELECTRICITY (SUPPLY) ACT, 1948 - ADDITIONAL CHARGES ARE NOT PENALTY BUT INCREASED INTEREST - ADDITIONAL CHARGES ARE NOT UNCONSTITUTIONAL - ADDITIONAL CHARGES ARE NOT ARBITRARY OR UNCONSCIONABLE - ADDITIONAL CHARGES ARE PART OF THE AGREEMENT BETWEEN THE PARTIES - ADDITIONAL CHARGES ARE RECOVERABLE FROM THE PETITIONERS FORTHWITH IN ACCORDANCE WITH LAW AS "ELECTRICITY DUES" PAYABLE BY THE PETITIONERS TO THE BOARD.
Fact of the Case:
PETITIONERS ARE RUNNING VARIOUS INDUSTRIES AND FOR RUNNING THEIR INDUSTRIES, ARE TAKING THE ELECTRICAL ENERGY UNDER WRITTEN AGREEMENTS FROM THE RESPONDENTS. THE U. P. STATE ELECTRICITY BOARD, BY DIFFERENT NOTIFICATIONS ISSUED FROM TIME TO TIME U/S. 49 (L) OF THE ELECTRICITY (SUPPLY) ACT, 1948 IMPOSED ADDITIONAL CHARGES DESCRIBED AS "COAL VARIATION ADJUSTMENT", "FUEL GAS VARIATION ADJUSTMENT" AND "FUEL SURCHARGE". THE VALIDITY OF THE AFORESAID ADDITIONAL CHARGES WAS CHALLENGED BY FILING WRIT PETITIONS WHICH WERE ADMITTED AND DURING THE PENDENCY OF THE WRIT PETITIONS DIFFERENT ORDERS WERE PASSED WHICH ARE CONTAINED IN ANNEXURES 1 TO 18 TO WRIT PETITION NO. 2628 OF 1986.
Finding of the Court:
THE ADDITIONAL CHARGES ARE NOT PENALTY BUT INCREASED INTEREST - ADDITIONAL CHARGES ARE NOT UNCONSTITUTIONAL - ADDITIONAL CHARGES ARE NOT ARBITRARY OR UNCONSCIONABLE - ADDITIONAL CHARGES ARE PART OF THE AGREEMENT BETWEEN THE PARTIES - ADDITIONAL CHARGES ARE RECOVERABLE FROM THE PETITIONERS FORTHWITH IN ACCORDANCE WITH LAW AS "ELECTRICITY DUES" PAYABLE BY THE PETITIONERS TO THE BOARD.
Issues: 1. WHETHER THE ADDITIONAL CHARGES IMPOSED BY THE NOTIFICATIONS U/S. 49 (1) OF THE ELECTRICITY (SUPPLY) ACT, 1948 ARE VALID? 2. WHETHER THE ADDITIONAL CHARGES ARE PENALTY? 3. WHETHER THE ADDITIONAL CHARGES ARE UNCONSTITUTIONAL? 4. WHETHER THE ADDITIONAL CHARGES ARE ARBITRARY OR UNCONSCIONABLE? 5. WHETHER THE ADDITIONAL CHARGES ARE PART OF THE AGREEMENT BETWEEN THE PARTIES?
Ratio Decidendi: 1. THE ADDITIONAL CHARGES ARE NOT PENALTY BUT INCREASED INTEREST. 2. THE ADDITIONAL CHARGES ARE NOT UNCONSTITUTIONAL. 3. THE ADDITIONAL CHARGES ARE NOT ARBITRARY OR UNCONSCIONABLE. 4. THE ADDITIONAL CHARGES ARE PART OF THE AGREEMENT BETWEEN THE PARTIES.
Final Decision: PETITIONS DISMISSED.
( 1 ) THESE are five connected writ petitions raising similar questions of fact and law. Lcarned counsel for the petitioner in these writ petitions and the learned counsel appearing for the respondents have raised common arguments in these writ petitions and thus they are being disposed of by a common judgment. Besides oral arguments, the petitioners in these cases have also submitted written arguments twice. The last written argument was submitted by the petitioners on 10/07/1991. The contentions raised in the written arguments have also been taken into account while disposing of these writ petitions.
( 2 ) ALL the petitioners are running various industries and for running their industries, are taking the electrical energy under written agreements from the respondents. The U. P. State Electricity Board, by different notifications issued from time to time u/s. 49 (l) of the Electricity (Supply) Act, 1948 imposed additional charges described as "coal variation adjustment", "fuel Gas variation Adjustment" and "fuel Surcharge". The validity of the aforesaid additional charges was challenged by filing writ petitions which were admitted and during the pendeney of the writ petitions different orders were passed which are contained in Annexures 1 to 18 to writ petition No. 2628 of 1986. Broadly speaking the nature of the interim orders passed by this Honble Court in the aforesaid writ petitions fell in two categories, viz. (I) disconnection of electric supply was staved subject to the condition that the petitioner furnishes Bank Guarantee for the entire demand raised by the U. P. State Electricity Board and (II) disconnection of electrical energy was stayed subject to the petitioners depositing half of the impugned demand in cash and for the remaining half amount the petitioner was allowed to furnish Bank Guarantee. In respect o1 future demand of additional charges. The interim order was clarified by this court and the petitioner had to deposit half of the additions! charge in cash within the time stipulated in the demand bill and for the remaining half of the amount Bank Guarantee had been furnished within the time granted by this Court
( 3 ) ACCORDING to the petitioner the conditions laid down in the interim order had been complied with. So far as the future demand is concerned, according to the petitioner himself, the U. P. State Electricity Board during the pendency of the writ petition issued bills for electricity charges in respect of which on each of the bills the Board had endorsed the following remark by means of a rubber stamp "the liability of surcharge on late payment on unpaid amount accrued, exists and shall be charged after decision of Court. "
( 4 ) ALL the aforesaid writ petitions were finally heard by this Court and were dismissed by a Division Bench on 16/01/1986. The decision of this court is reported in AIR 1986 All. 342.
( 5 ) ACCORDING to the petitioner alter the dismissal of the writ petition the liability of the additional charges which had not been deposited and in respect of which Bank guarantees had been furnished in pursuance of the orders of the Court were discharged by the petitioner by making payment. U. P. State Electricity Board, however, issued fresh demands against the petitioner on account of the alleged delay in payment of the aforesaid amount of additional charges which had not been deposited in cash in view of the interim orders passed by the High Court and in respect of which the petitioners had furnished Bank Guarantees. The Board had demanded the late payment charges under clause (b) of para 10 of the rate schedule. In writ petition No. 2628 of 1986 it is contained in Annexure 19 to the writ petition. It was clearly stated that the writ petitions have been dismissed on 16-1-1986 and the bill for payment of additional charges from 20/02/1979 to 16/01/1986 amounting to Rupees 68,77,438. 12 p. was being sent which represents the amount which could not be realised within the time
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