BIHAR STATE ELECTRICITY BOARD AND ORS.versusM/S. ALLIED REFRACTORIES (PVT.) LTD. AND ORS.
- Citation
- 1996 INSC 133
- Decided
- 25 January 1996
- Disposal
- Appeal(s) allowed
Holding
A proportionate reduction of the minimum guarantee can be granted only after the consumer makes an application under Section 49 of the Electricity Supply Act, 1948; the High Court’s direct order was therefore invalid.
Summary
The Bihar State Electricity Board entered into a contract with Mis. Allied Refractories requiring the consumer to pay a minimum guaranteed charge for electricity. The consumers failed to consume the guaranteed amount because of frequent trippings, load shedding and power cuts, and under Clause 13 of the contract they were entitled to apply for a proportionate reduction of the guarantee. Instead of filing such an application, they directly approached the Patna High Court, which ordered the Board to grant the reduction. The Supreme Court held that the High Court was not justified in doing so because the statutory procedure under Section 49 of the Electricity Supply Act, 1948 requires the consumer to first make an application for reduction. Consequently, the High Court order was set aside and the consumers were directed to apply under the Act, after which the Board must consider and pass appropriate orders within a reasonable time. The appeal was allowed without costs.
Issues considered
- Whether a consumer is entitled to a proportionate reduction of the minimum guaranteed electricity charges under Section 49 of the Electricity Supply Act, 1948 without first making an application under the Act.
Legislation cited
Subjects
Judgment
, --\
BIHAR STATE ELECTRICITY BOARD AND ORS. A
v.
'· MIS. ALLIED REFRACTORIES (PVT.) LTD. AND ORS.
JANUARY 25, 1996
[K. RAMASWAMY AND G.B. PATTANAIK, JJ.] B
Electricity Supply Act, 1948 :
S. 49-Contract e11tered into between Elecllicity Board a11d Co11-
sumer-Payment of mi11imum guarantee charges to Board-Failure to con-
sume minimum guarantee level of electlicity on account of non-supply of
c
electlicity due to flippings, load sheddings or power cuts, consumer entitled
to make application for prop01tionate reduction of the minimum guaran-
tee-l11stead, consumer approaching the High Cowt by filing writ peti-
tion-High Court directing grant of proportionate reduction-Held, not
justified-Hence set aside-Consumer to make application-Board to co11- D
sider and pass appropliate orders within a reasonable time.
.
~
'
Bihar State Elect1icity Board & Anr. v. Mis. Dhanawat Rice & Oil Mills,
[1989] 1 sec 452, relied on.
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2940 of E
1996.
From the Judgment and Order dated 16.8.88 of the Patna High Court
in C.W.J.C. No. 1480 of 1988(R).
Praveen Swarup and Pramod Swarup for the Appellants. F
The following Order of the Court was delivered :
Leave granted.
Though the respondents have been served twice aqd respondents 1, G
2 and 6 were again served on September 22, 1995, they are not appearing
j either in person or through counsel. Acknowledgments from respondents
- '( 3; 4 and 5 for the second occasion have not been received. We, therefore,
declare that they are deemed to have been served.
- The only question is : whether the respondents are entitled to the H
987
988 SUPREME COURT REPORTS [1996] 1 S.C.R.
A proportionate reduction of the minimum guaranteed amount for non-supp-
ly of the electricity due to disruption by trippings, load sheddings and
power cuts etc.? Clause (13) of the contract entered into provides that they
are entitled to make an application in such a situation and the Board would
consider and pass appropriate orders in that behalf. Admittedly, the
B respondents had not made such an application, but straightaway ap- ...
proached the High Court for the relief. The High Court in the impugned
order dated August, 16, 1988 in C.W.J.C. No. 1480 of 1988 directed the
appellant to grant them proportionate reduction. The controversy is no
longer res integra. This Court in Bihar State Electricity Board & Anr. v. Mis
Dhanawat Rice & Oil Mills, [1989] 1 SCC 452 arising from the appellant-
C Board itself had held that under Section 49, an agreement had been
entered into by the. consumer with the appellant to pay minimum guarantee
of charges to the Board. On failure to consume the minimum guaranteed
level of electricity due to non-supply of electricity by trippings, load shed-
dings or power cuts, the consumer would be entitled to make an applica-
D tion for proportionate reduction of the minimum guarantee. Since
respondents had not made such an application, the High Court was not
justified in straightaway allowing the writ petitions and directing the grant
of the proportionate reduction. The order is set aside. This order does not
preclude the respondents to make application accordingly under Section
49 of the Electricity Supply supply Act and it would be open to the
E appellant-Board to consider and pass appropriate orders within a
reasonable time from the date of making the application.
The appeal is accordingly allowed, but, in the circumstances, without
costs.
Appeal allowed.
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