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Supreme Court of India

WEST BENGAL STATE ELECTRICITY BOARDversusM/S FAKIR CHAND RICE MILLS AND ORS.

Citation
1996 INSC 321
Decided
27 February 1996
Disposal
Disposed off

Holding

The Supreme Court held that the appropriate deposit should be at least half of the claimed amount and, in the facts, directed the respondents to deposit Rs 12 lakhs, superseding the High Court's order.

Summary

The West Bengal State Electricity Board claimed Rs 28,68,264.06 from Fakir Chand Rice Mills for alleged pilferage in electricity consumption. The trial court ordered the mill to pay Rs 2,60,000, which the High Court later modified to a direction to deposit Rs 5,60,000 without adjudicating the liability. The mill appealed to the Supreme Court under special leave, challenging the adequacy of the deposit order. The Supreme Court observed that in money‑claim disputes a deposit of at least half the claimed amount is customary and, given the Board's obligation to supply electricity, the respondents should be required to deposit a larger sum. Consequently, the Court directed the respondents to deposit Rs 12 lakhs within two months, crediting any amount already paid, and disposed of the appeal without costs.

Issues considered

  • Whether the High Court was justified in directing a deposit of Rs 5,60,000 without determining the liability for alleged electricity pilferage.
  • What quantum of security should be ordered in discretionary money‑claim proceedings pending final determination of the dispute.

Subjects

electricitypilferagemoney claimdiscretionary orderdepositSupreme Courtspecial leaveWest Bengal State Electricity Boardconsumersupply of electricity

Judgment

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A                WEST BENGAL STATE ELECTRICITY BOARD
                                    v.                                                 -
                                                                                       '-



                  MIS FAKIR CHAN'D RICE MILLS AND ORS.

                                FEBRUARY 27, 1996

B                [K. RAMASWAMY, S. SAGHIR AHAMAD AND
                               G.B. PATTANAIK, JJ.]

             Electlicity-<;onsume1~Pilferage-Demand of Rs. 28, 68, 264.06 from
    consume1~Suit by consumer for supply of elect1icity-Direction by t1ial to
C   consumer to deposit Rs. 2,60,000-High Cowt-Modification of order and
    direction to deposit Rs. 5,60,000-Validity of direction by High Cowt-Held
    nonnally in matters of money claim at least half of amount would be directed
    to be deposited-In this case Board is obligated to supply electlical ener-
    gy-Consumer is also under obligation to pay amount subject to detennination
    of controversy in suit-Conswner directed to deposit Rs. 12 lakhs.
D
             Cowt-Power to pass discretionary orde1~S1tould be exercised proper-
    ly.

             CIVIL APPELLATE JURISDICTION : Civil Appeal No. 4720 of
    1996.
E
         From the Judgment and Order dated 24.11.95 of the Calcutta High
    Court in C.O. No. 2714 of 1995.

          V.B. Reddy Additional Solicitor General, H.K. Pµri, Rajesh Srivas-
    tava and S.P. Lenka, for the Appellant.
                                                                                       --
F
             Sivaji Sen, Bar-at-Law, S.C. Ghosh and A.D. Sikri for the Respon-
    dents.

             The following Order of the Court was delivered :

G        Mr. A.D. Sikri, Learned counsel accepts notice on behalf of .the
    respondents. We have heard the counsel for the parties.

             Leave granted.

          As rightly pointed out by the counsel for the respondents, it is a
H   discretionary order. The discretion would also be properly exercised by the
                                         1142
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                W.B.S. ELECfRICITY BD. v. FAKIR CHAND RICE MILLS           1143

       courts below when dealing with the points in controversy. A demand of Rs. A
       28, 68, 264.06 was made on the allegation that there were pilferages in the
       meter reading of the electrical energy supplied to the respondents. In a suit
       by the respondents for supply of energy to the respondents, the trial Court
       directed payment of Rs. 2,60,000 and odd. On appeal, it was confirmed.
       When it was carried in revision, the High Court in C.O. No 2714 1995 B
...-   modified the order and directed the respondents to deposit a sum of Rs.
       5,60,000. Thus this appeal by special leave.

             A demand notice for Rs. 28 lakhs and odd having been issued, the '
       question is : whether the Court was right in directing ultimately payment
       of Rs. 5,60,000 ? The High Court does not appear to have addressed itself C
       to the questions. It simply repeated that it was a discretionary order passed
       by the courts below directing payment of Rs. 2.60 lakhs and at the same
       time directed the respondents to deposit Rs. 5,60,000 without adjudicating
       the matter. Normally, in matters of money claim, at least half of the amount
       would be directed to be deposited. In the situation obtaining in this case,
       when the appellant is obligated to supply electrical energy to the respon- D
       dents an equal obligation has to be cast on the respondents to pay the
       amount subject to determination of controversy in the suit. Under these
       circumstances, the respondents are directed to deposit a sum of Rs. 12
       lakhs within a period of two months from today. If the amount of Rs.
       5,60,000 has already been deposited, the same may be given credit for the E
       payment and the balance be paid within the aforesaid period.

            The appeal is accordingly disposed of. No costs.

       T.N.A.                                               Appeal disposed of.


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