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Maharashtra State Electricity ... vs Shilpa Steel And Power Ltd. Nagpur ...
2017 Latest Caselaw 4642 Bom

Citation : 2017 Latest Caselaw 4642 Bom
Judgement Date : 18 July, 2017

Bombay High Court
Maharashtra State Electricity ... vs Shilpa Steel And Power Ltd. Nagpur ... on 18 July, 2017
Bench: I.K. Jain
wp.3997.16.jud                           1


  IN THE HIGH COURT OF JUDICATURE AT BOMBAY
            NAGPUR BENCH, NAGPUR

                     WRIT PETITION NO.3997 OF 2016


Maharashtra State Electricity
Distribution Company Limited,
Through the Superintending Engineer
(Nodal Officer), Nagpur Urban Circle,
Prakash Bhavan, Link Road,
Nagpur : 440 001.                                                      .... Petitioner

       -- Versus -

01]    Shilpa Steel & Power Limited,
       through its Director Karan Bagariya,
       1-4, Wanjara Layout, Kamptee Road,
       Nagpur : 440 026.

02]    The Electricity Ombudsman,
       Plot No.12, "SHRIKRUPA", Vijay Nagar,
       Chhaoni, Nagpur : 440 013

03]    The Vice President,
       S.N.D.L., Chhindwara Road,
       Nagpur.                                                   .... Respondents

Shri S.V. Purohit, Advocate for the Petitioner.
Shri A.S. Kilor, Advocate for Respondent No.1.

                CORAM           : KUM. INDIRA JAIN, J.
                DATE            : JULY 18, 2017.


ORAL JUDGMENT :-


Rule. Rule made returnable forthwith. Heard finally

with the consent of learned Counsel for the parties.

02] Challenge in petition is to the order dated 22/01/2016

passed by the learned Electricity Ombudsman/respondent no.2

in Representation No.100/2015 thereby setting aside the order

dated 03/07/2015 passed by the Consumer Grievance Redressal

Forum, Nagpur.

03] The facts giving rise to the petition may be stated in

brief as under :

i. Respondent no.1 is industrial consumer. On receipt of

Electricity Bill dated 04/04/2015 for the month of

March, 2015. Respondent no.1 filed a complaint

before Internal Grievance Redressal Cell (IGRC) on

24/04/2015. The grievance of respondent no.1 before

IGRC was that the factory premises were being billed

at commercial tariff since beginning. As per the tariff

order dated 12/09/2010, Maharashtra Electricity

Regulatory Commission (MERC for short) clarified that

the consumer categorization should reflect the main

purpose of the consumer premises and the offices of

industries cannot be levied with commercial tariff.

Respondent no.1 claimed difference between

commercial tariff and industrial tariff for the period

from January, 2010 to March, 2015 amounting to

Rs.19,97,747/-. The complaint was rejected by IGRC

on 29/04/2015 on the ground that cause of action

arose in January, 2010 and in view of Clause 6.6 of the

MERC (CGRF & EO) Regulations, 2006 (hereinafter

referred to as 'the Regulations' for short) complaint

not being filed within time was barred by limitation.

ii. Being aggrieved by the order of IGRC, respondent

no.1 filed grievance before the forum. Contention of

respondent no.1 before the forum was that Clause 6.6

of Regulations does not apply to IGRC but it applies to

forum and complaint was well within limitation. The

forum dismissed the grievance of respondents. The

order of forum was challenged by filing

representation. Vide order dated 22/01/2016,

representation came to be partly allowed and the

order of forum was set aside. Petitioners have been

directed to refund the difference between commercial

tariff and industrial tariff in respect of office premises

of respondent no.1 from 01/09/2010 to 31/03/2015

along with interest at the bank rate. It is this order,

which is the subject matter of present petition.

04] Learned Counsel for petitioner submitted that

respondent no.1 did not challenge the tariff from January, 2010

till 24/04/2015. According to the learned Counsel, cause of

action for filing the complaint had arisen in January, 2010.

Referring to Clause 6.6 of the Regulations, it is submitted that

complaint being not filed within two years was barred by

limitation and IGRC and forum have rightly held that the

grievance of respondent no.1 was not within limitation.

05] The next submission on behalf of petitioner is that

respondent no.1 no where pleaded that it's office was merely an

administrative office and was not being used for sale of products

manufactured. There were separate meters and the meter for

office was also separate. The learned Counsel submits that in

view of this, consumer was not entitled to any relief.

06] The principal question in the present petition is

whether cause of action had arisen in January, 2010 or on

rejection of the grievance by IGRC. In this connection, Clause

6.6 of the Regulations would be relevant and the same is

reproduced here as under :

"6.6 The forum shall not admit any grievance unless it is filed within two (2) years from the date on which the cause of action has arisen."

07] Learned Counsel for respondent no.1 placed reliance

on decision of the Division Bench of this Court in M/s

Hindustan Petroleum Corporation Limited vs.

Maharashtra State Electricity Distribution Co. Ltd. &

others in Writ Petition No.9455/2011 and submitted that

cause of action for submitting grievance arose, when the IGRC

rejected the grievance of complainant.

08] On careful perusal of Clause 6.6 of the Regulations

and in view of the judgment of the Division Bench of this Court,

submission made on behalf of petitioner that cause of action

arose in January, 2010 is unsustainable. Respondent no.1 filed

complaint before IGRC on 24/04/2015. By its order dated

29/04/2015, IGRC rejected the grievance of respondent no.1.

The order of IGRC was challenged before forum on 08/05/2015.

It means from the date of rejection of complaint by IGRC,

grievance was filed before the forum within a month i.e. on

08/05/2015,. In this background, respondent no.2 has rightly

held that grievance of respondent no.1 was well within limitation,

as cause of action has arisen from the date of rejection of

grievance by IGRC.

09] Learned Counsel for petitioner then submitted that

direction in the impugned order to pay interest is not in

accordance with the Regulations. The petitioners have been

directed to pay interest on the amount to be refunded at bank

rate under Section 62(6) of the Electricity Act from 01/09/2010

till realization. Section 62(6) of the Electricity Act reads thus :

"Section 62. (Determination of tariff) :

(6) If any licensee or a generating company recovers a price or charge exceeding the tariff determined under this section, the excess amount shall be recoverable by the person who has paid such price or charge along with interest equivalent to the

bank rate without prejudice to any other liability incurred by the licensee."

10] From the careful reading of sub-section 6 of Section

62 of the Electricity Act, it is apparent that if the generating

company recovers an excess amount from the consumer, the

said amount shall be recoverable by consumer along with

interest equivalent to the bank rate. From the communication

dated 26/05/2015 by the Nodal Officer of petitioner addressed to

the Member Secretary, Executive Engineer, MSEDCL, Nagpur,

copy of which was sent to respondent no.1, it can be seen that in

view of MERC order dated 12/09/2010 and circular issued by the

Director Operations, MSEDCL, new tariff came to be

implemented with effect from 01/09/2010 and the commercial

consumption in the factory premises was to be charged as per

industrial tariff. The communication further indicates that

excess amount collected would be refunded through next

upcoming energy bills. In view of this, no fault can be found with

the order allowing interest on the amount to be refunded to

respondent no.1.

11] In the light of the above, it is clear that no

jurisdictional error has occurred in the impugned order. Writ

petition deserves to be dismissed. Hence, the following order :

ORDER

I. Writ Petition No.3997/2016 stands dismissed.

II. Rule is discharged with no order as to costs.

*sdw                                       (Kum. Indira Jain, J.)





 

 
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