Created byFuzzy Cloud

Supreme Court of India

JAYSHREE CHEMICALS AND ANR.versusORISSA STATE ELECTRICITY BOARD AND ORS.

Citation
2004 INSC 83
Decided
5 February 2004
Disposal
Dismissed

Holding

A notification stating it shall remain in force until further orders does not create a binding obligation to continue restrictions; the State Government may amend or rescind it, and the Board may levy minimum charges when no restriction exists.

Summary

Jayshree Chemicals, a power‑intensive industry, entered into supply agreements with the Orissa State Electricity Board. The State Government, invoking Section 228 of the Electricity Act, 1910, issued yearly notifications restricting power consumption and waiving minimum‑charge liability for certain water years. For the 1990‑91 water year no provisional allotment was made for the subsequent year, and the Board later informed the appellant that no restriction applied from July 1991, demanding payment of minimum charges for July‑December 1991. The appellant contended that the phrase “this shall remain in force until further orders” created a legitimate expectation that the previous year’s provisional allotment continued and that the Board could not levy minimum charges without a fresh notification. The Supreme Court held that the phrase merely allowed the State Government to amend or rescind the order at any time and did not bind it to continue restrictions absent a statutory order; consequently the Board was entitled to levy minimum charges. The Court dismissed the appeal, affirming the High Court’s decision.

Issues considered

  • The legal effect of the phrase “this shall remain in force until further orders” in a State Government notification under Section 228 of the Electricity Act, 1910.
  • Whether the Electricity Board could demand payment of minimum charges in the absence of a fresh restriction order for the water year 1991‑92.
  • The scope of the State Government’s discretionary power under Section 22B/228 of the Electricity Act to modify or rescind power‑restriction orders.

Legislation cited

Subjects

electricity lawminimum chargesstate government discretionpower restrictionwater yearadministrative lawsubordinate legislationcontractual obligations

Judgment

-                    JAYSHREE CHEMICALS AND ANR.
                                          V,
                                                                                    A
            ORISSA STATE ELECTRICITY BOARD AND ORS.

                              FEBRUARY 5, 2004

                 [R.C. LAHOTI, CJ. AND ASHOK BHAN, J.]                              B


          Electricity Laws:

          Electricity Act, 1910-Section 22B-State Electricity Board (General
    Conditions of Supply) Regulations, I 981-Clause 31 (e)-Electricity C
    Consumption-Shortage of pawer in State-issuance of Notifications under
    section 228 restricting use of power-Electricity Board allotting energy to be
    used by the consumer, a power intensive indust1y, for water years along with
    provisional allotment for next year-Notifications containing rider that they
    would remain in force until further orders-Waiver of payment of minimum D
    charges when notification in operation-For a particular year no restriction
    imposed for drawal of power and also while allotting energy for the previous
    year no provisional allotment made for the particular year-Electricity Board
    issuing bills for two months of the particular year to consumer as per
    provisional allocation-Subsequently Board issuing revised bills on basis of
    minimum charges and demanding minimum charges-Justification of-Held: E
    As there was no restriction on the drawal of power during the particular year,
    of which the consumer was aware consumer liable to pay minimum charges
    to the Electricity Board-Further, in the absence of statutory order passed by
    State Government it cannot be inferred that restriction was imposed for the
    particular year als<>-The words 'this shall remain in force until further orders' F
    would mean that government was free to revise, modify, alter or rescind the
    order even after its issue-Administrative Law-Subordinate Legislation.

          Words & Phrases :

           Expression "this shall remain in force until further orders" occurring   G
    in a State Government Notification issued in exercise ofpowers under section
    228 of the Electricity Act, 1910-Connotation of

         Appellant No.I, a power intensive industry consumes power as raw
    material. It entered into agreements with the State Electricity Board for
                                         133                                        H
                                                                                    ~·


    134                   SUPREME COURT REPORTS                   [2004] 2 S.C.R.

A supply of electricity to its plants. In the normal production year of
  electricity the consumer is permitted to consume electricity as per sits
  contracted demand. However, under Section 22B of the Electricity Act,
  1910 State Government can restrict the supply of electricity to the
  consumer for maintaining the supply and securing the fquitable
  distribution of energy. As such due to shortage of power in the/ State, the
B State Government has been passing orders/notifications under the section
  for particular water year to prohibit consumers from consuming entire
  extent of power. In the notification issued for water years starting from
  1984-85 to 1989-90 apart from the allotment made for the current year
  provisional allotment of energy for the next yea.r was also made. These                ,.
C notifications contained a specific rider that 'the same would remain in.
  force until further orders'. Further during the period the notification
  remained in operation, obligation to pay minimum charges under Clause
  31(e) of the State Electricity Board (General Conditions of Supply)
  Regulations, 1981 stood waived.

D         Notification was issued for the water year 1990-1991 but no
    provisional allotment was made for ensuing water year 1991-92. Electricity
    Board issued bills to the appellant as per the provisional allocation for
    July, 1991 and August 1991. Thereafter, it issued revised bills on the basis
    of minimum charges, as there was no restriction for drawal of energy by
E   the industry and subsequently demanded minimum charges. Appellant did
    not pay the minimum charges and filed writ petition challenging its liability
    to pay minimum charges to the Electricity Board. High Court dismissed
    the Writ Petition. Hence the present appeal.

          Appellants contended that after the commencement of the water year
p   1991-92 appellants believed in good faith considering the practice
    consistently followed by the State Government and the orders passed in
    the previous years that the previous water year's regulated allotment made
    on provisional basis was to be treated as continuing with all the incidents
    thereof; that the notification issued under Section 22B for the water year
    1990-91 which was to continue in operation till further order could not
G   be rescinded or varied by a Government order; and that even the
    Electricity Board was not sure as to whether a notification under Section
    228 would be issued or not since it had issued bills for the months of July           >
    and August 1991 as per the provisional allocation and not on the basis of
    the minimum charges.
H
          .IAYSllREE CHEMICALS v. ORISSA STATE ELECTRICITY ROARD        135

     Dismissing the appeal, the Court                                           A
      HELD: t. t. Section 22B(1) of the Electricity Act, 1910 vests
discretionary power in the State Government to regulate supply,
distribution, consumption and use of power if in its opinion it is necessary
or expedient so to do. Exercise of the statutory discretion depends upon
the situation prevailing d~ring the period. It would not be either fair or      B
proper to hold that merely because restrictions i,n the use of power had
been imposed during the previous years, the consumers would take it that
such restrictions would be imposed during the next water year also even
in the absence of any statutory order passed by the State Government..
                                                                  1141-F, GI    C
      1.2. The words "this shall remain in force until further orders" only
mean that the State Government was free to revise, modify, alter or rescind
their order even in the middle of the year, before the expiry of the period.
The power to amend or rescind the order issued under Section 228 was
available to the Government under the provisions of General Clauses Act.        D
Therefore, the submission that the notification issued under Section 228
for the water year 1990-91 which was to continue in operation till further
orders cocld not be rescinded or varied by the Government order cannot
be accepted. This submission has been advanced on the presumption that
notification for the water year 1990-91 was to remain in force until further
orders including the next water year. Question of rescinding the                E
notification for the water year 1990-91 did not arise as it came to a·n end
with the expiry of its durative period. The notifications were restrictive
in hS period of operation and were issued from year to year. The letter
by the Board dated 20.9.1991 is only clarificatory informing appellant No.I
that there was no restriction imposed by the Government regarding the           F
consumption of electricity for the water year 1991-92 and the industries
were liable to pay the minimum charges in case they did not consume the
contracted load of energy. (141-H; 142-A, B; 143-G, H; 144-AI

        1.3. When the period of allotment is expressly and specifically
mentioned, the order cannot be construed to mean that its life shall extend     G
beyond the external termini mentioned in the order. In the order dated
6.8.1990 for the water year 1990-91 there was no provisional allotment
for the next water year. This order could not be construed to mean that
its life would continue beyond 30.6.1991. Any construction to the contrary
would be in conflict with the express language of the notification. This view   H
     136                   SUPREME COURT REPORTS                    [2004] 2 S.C.R.

A    is fortified by the subsequent order for the water year 1991-92 issued on
     16.1.1992 which expressly mentioned that it shall come into force w.e.f.
     17.1.1992 and come to an end on 30.6.1992. Therefore, there was no
     restriction during the period from 1.7.1991 to 16.1.1992 and the restriction
     for the water year 1991-92 became effective only from 17.1.1992.
                                                               fl42-D-E; 143-AI
B
            1.4 No restrictions were imrosed for drawal of power between
     1.7.1991 and 16.1.1992 as the water level in the various reservoirs was
     adequate. This is confirmed by the appellants in their letter and also they
     were at all times aware that power was available and no restrictions had
C    been imposed. But the appellant is taking contradictory stand. The issuance
     of the bills for the months of July and August 1991 on provisional basis
     would not lead fo the conclusion that this act of the Board had induced
     the appellants to believe that the pr~vious water year's regulated allotment
     could be treated as continuing for the next water year 1991-92 as well. It
     does not mean that the Board could either not revise the bills or rectify
D    its mistake. Therefore, the revised bills issued to appellant No. 1 to pay
     the 'minimum charges' under the terms of the agreement as well as the
     tariff notification, is in accordance with law and the claim of the appellants
     that since the restriction order for the water year 1990-91 was operative
     for the year 1991-92 they are not liable to pay minimum charges, cannot
E    be accepted. f 143-B-E)

             CIVIL APPELLATE JURISDICTION : Civil Appeal No. 15478 of
     1996.

           From the Judgment and Orde~ dated 8.2.96 of the Orissa High Court
     in O.J.C. No. 165 of 1992 .
.F
          G.L. Sanghi, Gaurav Kejriwal, N.P. Agarwalla and P.C. Sharma for
     M/s. L.P.Agarwalla & Co. for the Appellant.

             Raj Kumar Mehta and Suman Kukrety for the Respondents.

G·           The Judgment of the Court was delivered by

           BHAN, J. Aggrieved against the order passed by the High Court in



H
     dismissing the writ petition filed under Article 226 of the Constitution of
     India (Original Jurisdiction Case· No. 165 of 1992) the writ petitioners-
     appellants have filed the present appeal.
                                                                                      -
     JAYSHREECHEMICALS 1·. ORISSA STATE ELECTRICITY BOARD [BHAN, J.]       J   37
      In the writ petition the appellants challenged their liability to pay A
minimum charges to the Orissa State Electricity Board (for short "the Board")
under the provisions of the State Electricity Board (General Conditions of
Supply) Regulations of 1981 (for short "the Regulations") framed under
Section 79 G) & (k) read with Section 49A of the Electricity (Supply) Act,
1948 (for short "Supply Act"). Clause 31 (e) of the Regulations provides:
                                                                                    B
       "Every consumer shall during the continuance of agreement also pay,
       when required, the monthly minimum charges even if no electricity
       is consumed for any reasons, wheresover, or supply has been
       disconnected and also if the monthly charges for electricity actually
       consumed much less than the minimum charges subject to exemption, C
       if any, provided in the agreement or under these regulations."

      The appellant No. I under the Regulations has been categorised as "a
power intensive Industry'', i.e., it consumes power as a raw material. It has
entered into two subsisting agreements with the Board (dated 31.10.1980 and
19.2.1983) for supply of electricity to its Sodium Hydrosulphite and Calistic       D
Soda Plants. In the normal production year of the electricity the consumer is
permitted to consume electricity as per its contracted demand. Appellant
No.2 is a share holder of appellant No. I. Under Section 22 8 of the Indian
Electricity Act, 1910 (for short "the Act") the power vests in the State
Government to control the distribution and consumption of the electricity.
Section 228 reads as under:                                                         E
       '"228. Power to control the distribution and consumption of energy.-
       ( I) If the State Government is of opinion that it is necessary or
       expedient so to do, for maintaining the supply and securing the
       equitable distribution of energy, it may by order provide for regulating
       the supply, distribution, consumption or use thereof.                        F
       (2) Without prejudice to the generality of the powers conferred by
       sub-section (I) an order made thereunder may direct the licensee not
       to comply, except with the. permission of the State Government, with-

       (i)   the provisions of any contract, agreement or requisition whether       G
             made before or after the commencement of the Indian Electricity
             (Amendment) Act, 1959, for the supply (other than the resumption
             of a supply) or an increase in the supply of energy to any person,
             or
       (ii) any requisition for the resumption of supply of energy to a             H
    138                    SUPREME COURT REPORTS                    f2004] 2 S.C.R.

A               consumer after a period of six months, from the date of its
                discontinuance, or
           (iii) any requisition for the resumption of supply of energy made
                 within ~ix months of its discontinuance, where the requisitioning
                 consumer was not himself the consumer of the supply at the time
B                of its discontinuance."

    Under this provision the State Government irrespective of any contract or
    agreement entered into ·can restrict the supply of electricity to the consumer
    if the State Government is of the opinion that it is necessary or expedient so
    to do for maintaining the supply and securing the equitable distribution of
C   energy.

           Because of the chronic shortage of power the State Government has for
    the last many years starting from 1979 been passing orders/notifications under
    Section .22B of the Act. These. notifications were coming in several different
    ways to prohibit industrial consumers from consuming the entire extent of
D   power under their respective contracts. The current pattern of such notification
    since 1984 was to provide restrictions for an entire year, i.e., from the first
    day of July of one year to the end of the June of the next year, which was
    known as a "water year".

          Though a water year commenced on the first of July each year, but, the
E power resources of the State being largely dependent on hydel generation,
    i.e., rainfall and storage of water in the Hirakud and Balimela reservoirs, it
    was not possible for either the t:lectricity Board or the State Government to
    assess or evaluate the generation prospects of power and accordingly made
    industry wise allocation until the monsoon fully settled all over the State.
F   Power control orders/notifications under Section 22 B of the Act used to be
    passed after the comrnencement ofihe water year sometimes after 2-3 months
    followed by subsequent notifications each modifying the preceding one, but
    making them retrospective from 1st of July of every year. During the period
    notification under Section 22B remained in operation, obligation to pay
    minimum charges under. clause 31(e) of the regulations stoods waived.
G   Following is the statement depicting the situation since the water years 1984-
    85 till 1990-91.

    Water Year           Order of Govt. of Orissa                 Suspension of
    (July to June)       Irrigation & Power Deptt.               Contract demand
H 1984-85                Order No. 3 I 'J6 dt. 22.1.85              78-66%
-        JA YSHREE CHEMICALS"· ORI SSA STATE ELECTRICITY BOARD [BHAN, .I.]    139

    1985-86             Order No. 37477 dt. 31.8.85                78.66%             A

    1986-87             Order No. 46885 dt.31.10.86                78.66%
    1987-88             Order No. 30826 dt. 16.7.87                70.13%



-   1988-89
    1989-90
                         Order No. 31060 dt. 13.7.88
                         Order No. EL/111 /15/89/6873
                                                                   79.29%
                                                                   79.29%
                                                                                      B


                         dt. 14.2.90
    1990-91              i) Order No. El/111-87/90/92-B/EG
                            dt. 6.8.90                                                c
                         ii) Order No. El/111-87/90/5021
                             dt. 24.10.90                          64.87%

          These notifications contained a specific rider that the same "would
    remain in force until further orders". In the notification issued for the water   D
    years starting from 1984-85 to 1989-90 apart from the allotment made for
    that particular 'water year' provisional allotment of energy for the next water
    year starting from the next year was also made. For example, in the order
    dated 31.8.1985 imposing restriction under Section 22 B of the Act for the
    water year 1985-86 it was expressly stated:

           "The quantity allotted in Annexure - for the water year 1985-86 may
                                                                                      E
           be treated as the provisional allotment of energy for the water year
           1986-87 starting from 1.7.86 unless otherwise revised by the State
           Government. The order shall come into force with immediate effect
           and shall remain in force until further orders."
                                                                                      F
          Similarly, notifications issued for the water years 1985-86, 1986-87,
    1987-88, 1988-89, 1989-90 also contained the provisional allotments for the
    next water year. It was clearly mentioned that any consumption already made
    in accordance with the provisional orders shall be adjusted against the allotment
    made under the notification. In other words; in the said orders not only the
    provision was made to lay down the allotment of the current year but also G
    provisional allotment was made for the coming year as well. In contrast to
    these notifications issued under Section 22-B of the Act, for the water year
     1990-91, restriction was imposed by fixing the percentage of the estimated
    annual requirement to be allotted by the Board and it was left to the Board
    to make the actual calculation and fix the total million units of energy to be H ·
    140                    SUPREME COURT REPORTS                    [2004) 2 S.C.R.

A used by the consumer during the water year. Unlike the previous notifications
    for the water years from 1984-85 to 1989-90 in the notification for the water
    year 1990-91 provisional allotment for the ensuing water year 1991-92 was
    not made.

          On 20.9.1991 the Board wrote a letter bearing No. 1733 infonning the
B appellant No. I that for the water year 1991-92 notification under Section
    22B was. not issued and as such there was no restriction in monthly drawal
    of such power from July 1991 and therefore with effect from July 1991 the
    appellant No. I shall be liable to pay minimum charges as prescribed in Orissa
    tariff rate schedule. Appellant No. I was also informed that the bills for July
C   1991 and August 1991 already claimed without considering minimum charges
    was liable to be revised as there was no restriction for drawal of energy by
    the industry. The appellant No. I did not pay the minimum charges as
    demanded by the Board. On 26.12.1991 the Board wrote a letter to the
    appellant No. I informing it that supply of energy would be disconnected in
    case it fails to clear the outstanding demand.
D
           Aggrieved against this action of the Board the appellants filed the writ
    petition challenging the claim of minimum charges from July 1991 to
    December 1991 being ultra vires the provisions of Articles 14 and 19(1)(g)
    of the Constitution of India and commanding the Board to rescind or cancel
    or withdraw the letter dated 26.12.1991 al'id the subsequent letters demanding
E   the minimum charges. The High Court dismissed the writ petition holding
    that since for the water year 1991-92 a notification under Section 22B of the
    Act had not been issued the appellants were liable to pay the minimum
    charges for the pe~iod from July 1991 as demanded by the Board till the
    notification under Section 228 was· issued on 16.1.1992.
F         Shri G.L. Sanghi, learned Senior counsel appearing for the appellants
   contended that after the commencement of the water year 1991-92 w.e.f.
   I. 7.1991 the appellants believed in good faith that the previous water year's
   regulated allotment made on provisional basis was to be treated as continuing
   with all the incidents thereof. This impression was created considering the
G practice consistently followed by the State Government and the orders passed
   in the previous years. Though there was no specific notification issued under
   Section 22B for the water year 1991-92 till 16.1.1992 the appellants bona
  fide believed that the Board was not in a position to meet the full contract
  demand of industrial consumers in .the State due to chronic shortage of power
H and therefore supply of electricity to the industries has to be restricted. Board
                                                                                      --
,
        .IAYSHREE CHEMICALS''· ORISSA STATE ELECTRICITY BOARD [BHAN . .1.)   141

    by its previous conduct also induced the appellants to believe that no adverse A
    consequences like imposition of minimum charges would be fastened upon
    the appellants pending the passing of an order under Section 228 which
    besides regulating the allotment of supply was coupled with the inevitable
    legal incidence of relievi11g consumers from liability to pay minimum charges.
    This bona fide belief was further strengthened by the wording of the order B
    which clearly stated that the order "would remain in force until futther orders".
    That even the Board was not sure as to whether a notification under Section
    2213 would be issued or not and that is why it had issued bills for the months
    of July and August 1991 as per the provisional allocation and not on the basis
    of the minimum charges. Another submission made by the counsel for the
    appellants is that the notification issued under Section 228 for the water year C
    1990-91 which was to continue in operation till further orders could not be
    rescinded or varied by a Government order. It could be done by issuing a
    fresh notification under Section 228 of the Act.

           We do not find force in either of the submissions made on behalf of the
    appellants. Section 228 (1) of the Act which is relevant for the present D
    purpose provides that if the State Government is of the opinion that it is
    necessary or expedient so to do for maintaining the supply and securing the
    equitable distribution of energy it may by order provide for regulating the
    supply, distribution, consumption or use thereof. Sub-section (I) of Section
    78-A of the Supply Act lays down that in the discharge of its functions the E
    Board shall be guided by such directions on questions of policy as may be
    given to it by the State Government. The order under Section 228 is passed
    in respect of a particular water year. In the allotment orders for the water
    years 1984-85, 1985-86, 1986-87, 1987-88, 1988-89 and 1989-90 contained
    a provisional allotment for the next water year as well. It was clearly mentioned
    in these orders that any consumption already made in accordance with the F
    provisional orders shall be adjusted against the allotment made under the
    notification. In other words, in the said orders not only the provision was
    made to lay down the allotment for the current year but also provisional
    allotment was made for the coming year as well. Undisputedly in the regulatory
    order dated 6th August, 1990 for the water year 1990-91 the State Government G
    made a departure from the orders passed during the previous periods in not
    stating therein any provisional allotment of power for the ensuing water year.
    All that was stated in the said order was that the restriction imposed in it
    would remain in force until further orders. Section 228(1) vests discretionary
    power in the State Government to regulate supply, distribution, consumption
    and use of power if in its opinion it is necessary or expedient so to do. H
    142                    SUPREME COURT REPORTS                    [2004) 2 S.C.R.

A Exercise of the statutory discretion depends upon the situation prevailing
    during the period. It would not be either fair or proper to hold that merely
    because restrictions in the use of power had been imposed during the previous
    years, the consumers would take it that such restrictions would be imposed
    during the next water year also even in the absence of any statutory order
B   passed by the State Government. The words "this shall remain in force until
    further orders" only mean that the State Government was free to revise,
    modify, alter or rescind their order even after issue of the aforesaid orders.
    The power to amend or rescind the order issued under Section 228 was
    available to the government under the provisions of General Clauses Act
    which provides that the power to make orders, rules or bye-laws includes the
C   power exercisable in the like manner and subject to the like conditions to act
    to amend, verify or rescind or revise. Lest the same would be questioned at
    any time by way of abundant caution the government in the notification.
    issued mentioned "that this shall remain in force until further orders". For
    exam pie, the order dated 31st October, 1986 for the water year 1986-87 was
    revised by notification dated 6th March, 1987. The allotment made under
D   order dated I 4.2.1990 was partially modified by a notification dated 11th
    June, 1990 before the expiry of the period. Similarly, the restriction order
    dated 6th August, 1990 for the water year 1990-91 was revised by notification
    dated 24th October, 1990. The use of the expression "this shall remain in
    force until fu11her orders" only means that the order can be changed or
E   revised or amended or even withdrawn even in the middle of the year, before
    the expiry of the period. It did not mean that when the period of allotment
    is expressly and specifically mentioned, the order can be construed to mean
    that its life shall extend beyond the external termini mentioned in the ·order.
    Unlike the notification issued for the previous years where the provisional
    allocation was made for the next water year as well, in the order issued under
F   Section 22B dated 6th August, 1990 for the water year 1990-91 there was no
    provisional allotment for the next water year. This order could not be construed
    to mean that its life shall continue beyond 30th June, 1991. Any construction
    to the contrary would be in conflict with the express language of the
    notification dated 6th August, 1990. This view is .fortified by the subsequent
G   order for the water year 1991-92 issued on 16th January, 1992. It is expressly
    mentioned in. the said order under Section 228 that it shall come into force
    w.e.f. 17th January, 1992 and come to an end on 30th June, 1992. It was
    stated:

            "Whereas the different categories of consumers have been getting
H           unrestricted supply of power as per their contract demand (subject to
     JA YSHREE CHEMICALS"· ORISSA STATE ELECTRICITY BOARD [BHAN, J.)       143
        peak load restriction) from 1.7.1991 to 16.1.1992.                         A
             Whereas the total availability of power during the water year
        1991-92 from 17th January, 1992 to 30.06.1992 from the generating
        stations in Orissa will fall short of the require111ent for power in
        State ......"
                                                                                   B
      This clearly shows that there was no restriction during the period from
1st July, 1991 to 16th January, 1992 and the restriction for the water year
1991-92 became effective only from 17th January, 1992.

      No restrictions were imposed for drawal of power between 1st July,
 1991 to 16th January, 1992 as the water level in the various reservoirs was C
adequate which is also confirmed by the appellant in their letter dated 10th
September, 1991 in which it has been, inter alia, stated that "the present
water level in all dams/reservoirs are satisfactorily good, we expect better
allotment of plans power at the earliest so that we can plan our production
and consumption of power in a better way". This letter clearly goes to show
that the appellant is taking contradictory stand. The appellants were at all D
times aware that the power was available and no restrictions had been imposed
for drawal of power during the period from 1st July, 1991 to 16th January,
 1992. Issuance of the bills for the months of July a.nd August, 1991 as per
the provisional allocation and not on the basis of minimum charges does not
mean that the Board could either not revise the bills or rectify its mistake. E
The issuance of the bills for the months of July and August 1991 on provisional
basis would not lead to the conclusion that this act of the Board had induced
the appellants to believe that the previous water year's regulated allotment
could be treated as continuing for the next water year 1991-92 as well. In this
view of the matter, the revised bills issued to the appellant No. I which is a
power intensive industry to pay the 'minimum. charges' under the terms of F
the agreement as well as the tariff notification, is in accordance with law and
the claim of the appellants that since the restriction order for the water year
1990-91 was operative for the water year 1991-92 they are not liable to pay
minimum charges, cannot be accepted.

      Submissions made on behalf of the appellants that the notification issued
                                                                                   G
under Section 228 for the water year 1990-91 which was to continue in
operation till further orders could not be rescinded or varied by the government
order is without any substance. It has to be simply noticed and rejected.
Notification issued for the water year 1990-91 was restrictive in its operation
for the water year starting from 1st July, 1990 to 30th June, 1991. It came        H
    144                    SUPREME COURT REPORTS                   [2004) 2 S.C.R.

A to an end with the cessation of its operative period. This contention· has been    -
  advanced on the presumption that notification for the water year 1990~9 I was
  to remain in force until further order's including the next water year. Question
  of rescinding the notification for the water year 1990-91 did not arise as it
  came to an end with the expiry of its durative period. The notifications were
B restrictive in its period of operation and were issued from year to year. The
  words "would remain in force until further orders" were used in the
  notifications to enable the State government to modify or vary the conditions
  of supply of energy within the same water year. The letter dated 20th
  September, 1991 is only clarificatory informing the appellant No.I that there
  was no restriction imposed by the Government regarding the consumption of              -~
C electricity for the water year 1991-92 and the industries were liable to pay the   {
  minimum charges in case they did not consume the contracted load of energy.        I
  It does not rescind or vary the notification for the water year 1990-91.

         For the reasons stated above, we do not find any merit in this al'pwl
    and dismissed the same with no order as to costs.                   ·
D
     N.J.                                                      Appeal dismissed.




                                                                                         '\


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "electricity law"Sign in to search

For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.