Tuesday, 12, May, 2026
 
 
 
Expand O P Jindal Global University
 
  
  
 
 
 

Dakshin Gujarat Vij Company Ltd vs Ambeshwar Paper Mills Ltd
2021 Latest Caselaw 5519 Guj

Citation : 2021 Latest Caselaw 5519 Guj
Judgement Date : 7 June, 2021

Gujarat High Court
Dakshin Gujarat Vij Company Ltd vs Ambeshwar Paper Mills Ltd on 7 June, 2021
Bench: B.N. Karia
       C/LPA/97/2003                                                                JUDGMENT DATED: 07/06/2021
DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)



                 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
     1.          R/LETTERS PATENT APPEAL NO. 97 of 2003

                 In R/SPECIAL CIVIL APPLICATION NO. 11276 of 2001
                                       With
     2.          R/LETTERS PATENT APPEAL NO. 123 of 2018
                                        In
                    SPECIAL CIVIL APPLICATION NO. 14289 of 2016

FOR APPROVAL AND SIGNATURE:

HONOURABLE DR. JUSTICE VINEET KOTHARI
 and
HONOURABLE MR. JUSTICE B.N. KARIA
==========================================================
1    Whether Reporters of Local Papers may be allowed to
     see the judgment ?

2       To be referred to the Reporter or not ?

3       Whether their Lordships wish to see the fair copy of the
        judgment ?

4       Whether this case involves a substantial question of law
        as to the interpretation of the Constitution of India or any
        order made thereunder ?

================================================================
                       1.
                  DAKSHIN GUJARAT VIJ COMPANY LTD.
                       2.
                  THE EXECUTIVE ENGINEER (INDUSTRIAL),
                       3.
                  THE DEPUTY ENGINEER
                                 Versus
             1.   SHREE AMBESHWAR PAPER MILLS LTD.
             2.   THE OFICIAL LIQUIDATOR OF AMBESHWAR PAPER
                  MILLS LTD.
===========================================================
Appearance:
Letters Patent Appeal No.97 of 2003
MS LILU K BHAYA(1705) for the Appellant(s) No. 1,2,3
MR KETAN D SHAH(1356) for the Respondent(s) No. 1
MR PATHIK M ACHARYA(3520) for the Respondent(s) No. 2
Letters Patent Appeal No.123 of 2018
MR DG CHAUHAN For the Appellant,
MS LILU K BHAYA For the Respondent No.2,




                                                              1/ 25

                                                                                               Downloaded on : Sat Jan 15 03:48:56 IST 2022
        C/LPA/97/2003                                                                JUDGMENT DATED: 07/06/2021
DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)




  CORAM: HONOURABLE DR. JUSTICE VINEET KOTHARI
         and
         HONOURABLE MR. JUSTICE B.N. KARIA
                     Date : 07/06/2021
                     ORAL JUDGMENT

(PER : HONOURABLE DR. JUSTICE VINEET KOTHARI)

1. Letters Patent Appeal No.97 of 2003 arising out of Special

Civil Application No.11276 of 2001 has been filed by Dakshin

Gujarat Vij Company Limited against M/s. Ambeshwar Paper

Mills Limited (now in liquidation) in the Bombay High Court

whose Official Liquidator is represented by Mr.Pathik Acharya,

learned advocate and the connected Letters Patent Appeal No.123

of 2018 arising out of Special Civil Application No.14289 of 2016

has been filed by M/s. Agro Pack Limited which claims to have

purchased part of the land over which the Papers Mill set­up by

Respondent ­ M/s.Ambeshwar Paper Mills Limited was located,

though no such Sale Deed or Conveyance Deed in its favour has

been placed on record.

2. The earlier Special Civil Application No.11276 of 2001 was

disposed of by the learned Single Judge of this Court (Coram: P.B.

Majmudar, J.) vide order dated 23.09.2002.




                                                              2/ 25


        C/LPA/97/2003                                                                JUDGMENT DATED: 07/06/2021

DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

3. While dealing with writ petition filed by M/s. Ambeshwar

Paper Mills Limited, the learned Single Judge inter alia observed

that the order passed by the Appellate Authority of Power Supply

Company was laconic and did not deal with all the contentions

raised by the Petitioner­Company M/s. Ambeshwar Paper Mills

Limited and therefore, the matter was remanded back to the

Appellate Committee, while confirming the findings of theft of

power committed by the Petitioner ­ M/s. Ambeshwar Paper Mills

Limited.

4. The following observations of the learned Single Judge are

quoted below for ready reference:

"So far as the connected load part is concerned, the Appellate Committee has brushed aside the argument of the petitioner by observing that at the time of preparing the checking sheet, no protest was made nor was stated before the officers of the checking squad that the connected load is wrongly noted in the checking sheet. In my view, the aforesaid aspect may be one of the considerations, but other arguments advanced by the petitioner in this connection are also required to be taken into account. Ultimately, the Appellate Committee may not agree with the submissions, but the arguments canvassed by the petitioner in this behalf are required to be taken into account, and also the fact, whether any other material was available for coming to the conclusion about connected load, is also required to be stated in the order. Documents submitted by the

3/ 25

C/LPA/97/2003 JUDGMENT DATED: 07/06/2021 DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

petitioner are also not considered in detail and those documents are also not taken into consideration by observing that they are irrelevant. In my view, the Appellate Committee has not considered, in detail, the submissions made by the petitioner in its written submissions as regards M X H X C factor. It is, no doubt, true that the Board has tried to justify the decision by submitting the said aspect on merits, but, as observed earlier, ultimately, it is for the Appellate Committee to consider the said aspect in more detail, as, ultimately, the Board, which is assigned with wide powers while deciding the rights of the parties, has to give finding of fact after considering the totality of the evidence.

Under these circumstances, it is clear that documents submitted by the petitioner are very casually dealt with, without giving detailed reasons about the same by the Appellate Committee. In view of the aforesaid aspects of the matter, and considering the fact that the petitioner has submitted detailed arguments before the Appellate Committee, in my view, the matter is required to be sent back to the Appellate Committee for the purpose of considering the question about the chargeable days for the purpose of supplementary bill and for the purpose of considering M X H X C factor again, in the light of the evidence on record. The Appellate Committee is free to take its own decision in this connection is free to take its own decision in this connection after after hearing both the sides. However, the Appellate Committee may deal with all the submissions of the petitioner in connection with the aforesaid three factors as well as the submission of the Board in this behalf. Since the arguments are not dealt with, in detail, and justification given by the Board before this Court, in my view, it is not enough in the present case, as it is for the appellate

4/ 25

C/LPA/97/2003 JUDGMENT DATED: 07/06/2021 DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

Committee to decide all these questions at the time of hearing the appeal. The matter is sent back to the Appellate Committee for giving fresh decision, as indicated above, on the aspect about computation of supplementary bill after considering all the relevant facts. The Appellate Committee will accordingly consider the question of assessment of supplementary bill afresh and while considering the said aspect, the contention of the petitioner, as incorporated above in this decision, may also be taken into consideration and the same may be dealt with after giving proper reasoning, in detail.

Accordingly, so far as the finding of theft recorded by the Appellate Committee is concerned, the submission of the petitioner on the same is rejected and, accordingly, the aforesaid finding arrived at by the Appellate Committee is confirmed. The matter is sent back to the Appellate Committee. The matter is sent back to the Appellate Committee for reconsideration of the question about computation of supplementary bill and tis proper assessment, and the said aspect may be considered after hearing the petitioner and the respondent and whatever may be the documentary evidence available on the record, the same may be dealt with by the Appellate Committee again and the written submission as well as the arguments advanced by the petitioner herein, as incorporated in this order, also may be taken into account while considering the aforesaid question about computation of supplementary bill. Since this aspect is not dealt with, in detail, and even the documentary evidence of the petitioner is not properly considered, by simply saying that it is irrelevant, the matter is sent back to the Appellate committee. The Appellate Committee is free to take its own decision after considering the documentary evidence on record and after considering the arguments

5/ 25

C/LPA/97/2003 JUDGMENT DATED: 07/06/2021 DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

of both the sides. It is clarified that this Court has not expressed any opinion on the merits of the quantum of supplementary bill in any manner and it is for the Appellate Committee to decide the said question again in the light of the observations made in the order."

5. The said remand directions of learned Single Judge could not

be complied with by the Appellate Committee as it existed under

the earlier Electricity Act, 1948 which was substituted by the new

Electricity Act, 2003 in view of the present Letters Patent Appeal

No.97 of 2003 filed by the M/s. Dakshin Gujarat Vij Company

Limited, aggrieved by the remand directions in which an interim

order was passed by the Coordinate Bench of this Court on

30.01.2003 staying the operation of the order passed by the

learned Single Judge and therefore, the said matter rested at that

stage.

6. During the pendency of the said litigation, since the

Respondent company M/s. Ambeshwar Paper Mills Limited went to

liquidation before the Bombay High Court and the O.L. is now

represented by learned counsel Mr.Pathik Acharya, the part of the

land is claimed to have been sold by the said Respondent ­ M/s.

Ambeshwar Paper Mills Limited in favour of M/s. Agro Pack

through and M/s. K.K. Traders, though the documents regarding

6/ 25

C/LPA/97/2003 JUDGMENT DATED: 07/06/2021 DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

such conveyance or sale in favour of the present Appellant - M/s.

Agro Pack in Letters Patent Appeal No.123 of 2018 are not on the

record of the case. Be that as it may, it is not even found relevant

for disposal of the present Letters Patent Appeals.

7. The earlier law in the form of Electricity (Supply) Act, 1948

came to be substituted by the new law in the form of Electricity Act,

2003 which was enforced with effect from 26.05.2003 and which

inter alia made the following provisions, which are relevant for our

purposes in so far as the forums for alternative remedy available to

an aggrieved consumer are concerned in Section 42 in Chapter­VI

as under:

"Section 42 - Duties of distribution licensees and open access:

          (1)         ....


          (2)         ....


          (3)         ....


          (4)         ....


          (5)         Every distribution licensee shall, within six months from the

appointed date or date of grant of licence, whichever is earlier, establish a forum for redressal of grievances of the consumers in accordance with the guidelines as may be specified by the State Commission.



                                                              7/ 25


        C/LPA/97/2003                                                                JUDGMENT DATED: 07/06/2021

DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

(6) Any consumer, who is aggrieved by non­redressal of his grievances under sub­section (5), may make a representation for the redressal of his grievance to an authority to be known as Ombudsman to be appointed or designated by the State Commission.

(7) The Ombudsman shall settle the grievance of the consumer within such time and in such manner as may be specified by the State Commission.

(8) The provisions of sub­sections (5), (6) and (7) shall be without prejudice to right which the consumer may have part from the rights conferred upon him by those sub­sections."

8. As far as the theft of electricity is concerned, Chapter­XIV

contains Section 135 (theft of electricity) and Section 153 provided

for setting up the Special Courts for dealing with such criminal

offence of theft of power. The said provisions to their relevant

extract are also quoted as under:

"135. Theft of electricity. ­ (1) Whoever, dishonestly, ­

(a) taps, makes or causes to be made any connection with overhead, underground or under water lines or cables, or service wires, or service facilities of a licensee or supplier, as the case may be; or

(b) tampers a meter, installs or uses a tampered meter, current reversing transformer, loop connection or any other

8/ 25

C/LPA/97/2003 JUDGMENT DATED: 07/06/2021 DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

device or method which interferes with accurate or proper registration, calibration or metering of electric current or otherwise results in a manner whereby electricity is stolen or wasted; or

(c) damages or destroys an electric meter, apparatus, equipment, or wire or causes or allows any of them to be so damaged or destroyed as it interfere with the proper or accurate metering of electricity; or

(d) uses electricity through a tampered meter; or

(e) uses electricity for the purpose other than for which the usage of electricity was authorised;

so as to abstract or consume or use electricity shall be punishable with imprisonment for a term which may extend to three years or with fine or with both."

"153. Constitution of Special Courts. ­ (1) The State Government may, for the purposes of providing speedy trial of offences referred to in [sections 135 to 140 and section 150], by notification in the Official Gazette, constitute as many Special Court as may be necessary for such area or areas, as may be specified in the notification.

(2) A Special Court shall consist of a single Judge who shall be appointed by the State Government with the concurrence of the High Court.


          (3)         A person shall not be qualified for appointment as a Judge of


                                                              9/ 25


        C/LPA/97/2003                                                                JUDGMENT DATED: 07/06/2021

DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

a Special Court unless he was, immediately before such appointment, an Additional District and Sessions Judge.

(4) Where the office of the Judge of a Special Court is vacant, or such Judge is absent from the ordinary place of sitting of such Special Court, or he is incapacitated by illness or otherwise for the performance of his duties, any urgent business in the Special Court shall be disposed of ­

(a) by a Judge, if any, exercising jurisdiction in the Special Court;

(b) where there is no such other Judge available, in accordance with the direction of District and Sessions Judge having jurisdiction over the ordinary place of sitting of Special Court, as notified under sub­section (1)."

"154. Procedure and power of Special Court.

                      (1)        ....


                      (2)        ....


                      (3)        ....


                      (4)        A Special Court may, with a view to obtaining the

evidence of any person supposed to have been directly or indirectly concerned in or privy to, any offence tender pardon to such person on condition of his making a full and true disclosure of the circumstances within his knowledge relating to the offence and to every other person concerned whether as

10/ 25

C/LPA/97/2003 JUDGMENT DATED: 07/06/2021 DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

principal or abettor in the commission thereof, and any pardon so tendered shall, for the purposes of section 308 of the Code of Criminal Procedure, 1973 (2 of 1974), be deemed to have been tendered under section 307 thereof.

(5) The [Special Court shall] determine the civil liability against a consumer or a person in terms of money for theft of energy which shall not be less than an amount equivalent to two times of the tariff rate applicable for a period o twelve months preceding the date o detection of theft of energy, or the exact period of theft if determined whichever is less and the amount of civil liability so determined shall be recovered as if it were a decree of civil court."

9. When a demand was raised by Power Company (DGVC), vide

letter dated 27.07.2016 produced at Annexure­B in Letters Patent

Appeal No.123 of 2018, against the purchaser M/s.Agro Pack in

terms of Regulation No.4.30, that dues of Rs.2,93,25,401/­ as

principal amount of dues from the erstwhile consumer M/s.

Ambeswar Papers Mills on the said Plot No.140/3 at GIDC,

Ankleshwar is due to be paid in terms of Regulation No.4.30 of

GERC vide Notification No.4 of 2015. The said Regulation

No.4.30 is quoted as under:

4.30 "An application for new connection, reconnection, addition or reduction of load, change of name or shifting of service

11/ 25

C/LPA/97/2003 JUDGMENT DATED: 07/06/2021 DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

line for any premises need not be entertained unless any dues relating to that premises or any dues of the applicant to the Distribution Licensee in respect of any other service connection held in his name anywhere in the jurisdiction of the Distribution Licensee have been cleared.

Your application for new temporary connection is treated as cancelled and requesting you to clear dues as early as possible."

10. The said consumer ­ M/s.Agro Pack filed Special Civil

Application No.14289 of 2016 against the said demand raised by

the company, which, however, came to be dismissed by the learned

Single Judge (Coram: Bela M. Trivedi, J.) by the order impugned

before us on 12.01.2018 relegating the said Appellant ­ M/s. Agro

Pack to the alternative forum available to it under the Act of 2003.

11. Against the said order of learned Single Judge, Letters Patent

Appeal No.123 of 2018 has been filed by the Appellant - M/s. Agro

Pack.

12. Learned counsel for the Power Company DGVC Ms. Lilu K.

Bhaya also brought to our notice that as far as findings of theft of

power by the erstwhile consumer ­ M/s. Ambeshwar Paper Mills

Limited is concerned, two findings have achieved finality at the

12/ 25

C/LPA/97/2003 JUDGMENT DATED: 07/06/2021 DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

hands of the learned Single Judge in the order dated 23.09.2002 of

Justice P.B. Majmudar and the matter relating to the assessment on

some actual aspects were only remanded to the Appellate

Committee with certain observations, aggrieved by which, the

Power Company filed the aforesaid Letters Paten Appeal No.97 of

2003 and in the circumstances narrated above, in view of the stay

order dated 30.01.2003 passed by the Division Bench of this Court,

the Appellate Authority could not take up the matter again, as

directed by the learned Single Judge.

13. She also submitted that the Appellant Company - DGVC had

to file a recovery suit against the said M/s. Ambeshwar Paper Mills

Limited for recovery, which finally was decreed in favour of

Appellant by the Commercial Court upon its constitution under the

Commercial Court Act, 2015 in Case No.260 of 2016 vide Decree

dated 23.02.2018, and therefore, the Appellant ­ Power Company

is entitled to recover the principal amount along with interest

which demand has now risen, almost to over Rs.8 crores now,

which the consumer ­ M/s. Agro Pack if it intends to obtain new

power connection from the Appellant - company has to pay in view

of Regulation No.4.30 as quoted above. She also brought to our

13/ 25

C/LPA/97/2003 JUDGMENT DATED: 07/06/2021 DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

notice the earlier interim orders passed by the Coordinate Benches

of this Court to which one of us (Kothari, J. was a party), in which

the Appellant ­ M/s. Agro Pack undertook to clear all the dues of

the erstwhile consumer ­ M/s.Ambeshwar Paper Mills Limited (in

liquidation) which Appellant­ M/s. Agro Pack is now represented

by Mr.D.G. Chauhan, learned counsel. The following interim orders

dated 05.03.2021 and 26.03.2021 passed by this Court are quoted

for ready reference:

Interim order dated 05.03.2021 in this case (Coram:

Mr.Vineet Kothari and Mr.Biren Vaishnav, J.J.)

"1. Mr. D.G. Chauhan, learned Counsel appearing for M/s. Agro Park Company to whom the unit in question was sold by earlier defaulting company M/s. Ambeshwar Paper Mills Limited (In Liquidation) submits that M/s. Agro Park is ready and willing to square up the dues of the electricity company namely: Dakshin Gujarat Vij Company Limited. He also refereed to the decree dated 23.3.2018 of the Commercial Court against the said Company in this regard.

2. The learned Counsel Ms. Lilu Bhaya appearing for Dakshin Gujarat Vij Company Limited undertakes to inform the final amount to be paid by the said company which were outstanding and due from the earlier company i.e. Ambeshwar Paper Mills Limited (In Liquidation) which Mr. Chauhan's client M/s. Agro Park undertakes to pay as early as possible.



                                                             14/ 25


        C/LPA/97/2003                                                                JUDGMENT DATED: 07/06/2021

DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

3. Let all these relevant papers be placed on the record after the aforesaid dues are informed to M/s. Agro Park Company and are paid by it as undertaken before this Court by Mr. D.G. Chauhan appearing for M/s. Agro Park Company.

4. Mr. Pathik Acharya, learned counsel appears for Official Liquidator, Bombay where the said Company i.e. M/s. Ambeshwar Paper Mills Limited is in liquidation also submitted that with the aforesaid deposit of the dues of the electricity company, the present Appeals are likely to be rendered to be infructuous.

5. Let the relevant papers of the said developments be placed on record after three weeks.

6. If the amount as informed by the Electricity Company is deposited by M/s. Agro Park Company alongwith the requisite fees for release of power connection in their favour, the said power connection may also be released to them.

7. List on 26.3.2021.

Interim order dated 26.03.2021 in this case (Coram:

Mr.Vineet Kothari and Mr.Biren Vaishnav, J.J.)

"1. Mr.D.G. Chauhan, learned counsel appearing for M/s.Agro Pack, is not available in the meeting, though he had undertaken before the Court on the last date of hearing on 5.3.2021 that M/s.Agro Pack is ready and willing to deposit the outstanding dues of M/s.Ambeshwar Paper Mills (in Liquidation) which were required to be informed by the Appellant Dakshin Gujarat Vij Company Ltd.


                                                             15/ 25


        C/LPA/97/2003                                                                JUDGMENT DATED: 07/06/2021

DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

2. Ms.Lilu K. Bhaya, learned counsel, submitted that on that very day i.e. on 5.3.2021, said Firm - M/s.Agro Pack was informed that the total dues as per the Decree of the Commercial Court, Vadodara was Rs.8,49,55,539/­ but, the said partner of M/s.Agro Pack - Mr.Vipin Madhavbhai Patel, through his Affidavit dated 6.3.2021, has submitted in his Affidavit that the said Firm is only ready and wiling to deposit the principal amount of Rs.2,48,33,768.81 without any interest as per the Decree dated 23.2.2018 passed by the Commercial Court, Vadodara. This Affidavit is prima facie contrary to the undertaking given by Mr.D.G. Chauhan, learned counsel, on behalf of his client - M/s.Agro Pack before this Court on 5.3.2021.

3. Mr.D.G. Chauhan, learned counsel, is not present in the meeting today, therefore, the hearing of this case at this stage is postponed.

4. Put up on 7.4.2021."

14. Today also, when these matters were taken up, learned

counsel Mr.D.G. Chauhan for M/s. Agro Pack offered to pay the

principal amount of Rs.2 crores and odd, but since the Respondent

- company ­ Dakshin Gujarat Vij Company Limited insisted on the

payment of whole of Rs.8.49 crores along with interest, the

Appellant - M/s. Agro Pack has not paid anything to the said Power

Company. However, those interim orders and Undertaking given

thereunder stands not complied with by the M/s. Agro Pack. Be

16/ 25

C/LPA/97/2003 JUDGMENT DATED: 07/06/2021 DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

that as it may, since we are disposing of these appeals, we need not

to go further into that aspect of the matter.

15. The position as it stands now before us is that since both the

learned Single Judges of this Court, while disposing of both these

writ petitions, had relegated the consumer Appellant to the

alternative forum and even earlier, the learned Single Judge of this

Court was of the opinion that some factual aspects of the matter

deserve to be looked into by the Appellate Committee then

available, we are of the opinion that the factual aspects of the

matter even if the findings relating to the theft of power by

erstwhile company has become final the other factual aspects

deserves to be looked into by some competent body created under

the new enactment namely the Electricity Act, 2003.

16. As quoted above, the two authorities are now available under

sub­section (5) and (6) of Section 42 of the Electricity Act, 2003 at

the District Level, the Consumer Grievance Redressal Forum have

been and similar forum at State level and the final authority is

created under sub­section (6) of Section 42 is the Ombudsman to

be appointed or designated by the State Commission. These

authorities are created under the Gujarat Regulation Regulatory

17/ 25

C/LPA/97/2003 JUDGMENT DATED: 07/06/2021 DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

Commission (Consumer Grievances Redressal Forum and

Ombudsman) Regulations, 2019 recently published vide

Notification No.2 of 2019 published in the Gujarat Government

Gazette Extraordinary on 30th September, 2019. It is not in

dispute before us that these authorities are now functional, as

established by 2019 Regulations under Section 42 of the Electricity

Act, 2003.

17. We are of the further opinion that instead of relegating the

matter to a lower Authority at District Level viz. Consumer

Grievance Redressal Forum at Ankleshwar, where the said Paper

Mill was located, the highest body which provides an alternative

forum to the consumer and where both the parties can be heard is

that of the Ombudsman, created under sub­section (6) of Section

42 of the Electricity Act, 2003, should adjudicate such factual

aspects.

18. Obviously, the disputed factual aspects cannot be and should

not be gone into in the extraordinary writ jurisdiction under

Section 226 of the Constitution of India. We are therefore of the

opinion that filing of the Letters Patent Appeal by both the parties

in this matter was rather misconceived and they ought to have

18/ 25

C/LPA/97/2003 JUDGMENT DATED: 07/06/2021 DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

resolved their dispute at the appropriate forums at the relevant

point of time itself. Since the present Letters Patent Appeals have

spent a huge period of time of this Court in present LPAs, a long

period has been lost without effective resolution of the dispute and

while the erstwhile consumer has gone into liquidation, the present

Appellant ­ M/s. Agro Pack has half heartedly undertaken before

this Court to pay some dues of erstwhile consumer under

Regulation 4.30 vide interim orders quoted above which albeit

stands not paid.

19. Ms.Lilu Bhaya also made a submission that since the aspect

that supplementary bills raised against the purchaser M/s. Agro

Pack including the quatum of supplementary bill, has been gone

into by the Appellate Committee, the Ombudsman under the new

law cannot again go into it.

20. We are not inclined to accept the submission because in

terms of the orders passed by the learned Single Judges, in both the

orders, the Ombudsman will have to deal with the factual aspects

of the matter and only the finding of theft has been maintained

because that has become final at the hands of the learned Single

Judge which we are not inclined to disturb at this stage nor any

19/ 25

C/LPA/97/2003 JUDGMENT DATED: 07/06/2021 DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

such case has been made out before us.

21. The relevant Regulation in Chapter­III of Regulation 2019

with regard to appointment of Ombudsman and his power and

jurisdiction are also quoted below for ready reference.

"3. Appointment of Ombudsman.

3.1 In accordance with Sub­section (6) of Section 42 of the Act, the Commission may, from time to time, appoint or designate a person as Ombudsman to discharge the functions in accordance with Sub­section (7) of Section 42 of the Act.

3.2 The Commission may appoint or designate more than one Ombudsman for a Licensee or an Ombudsman for two or more Licensees or establish a sitting bench of Ombudsman for licensee/es for some days of a month/week at any place in the State considering factors such as number of representations received, disposal of representations within the specified time limit, ease of access for the Consumer, etc.

3.3 The commission shall invite applications through public advertisement for appointment of the Ombudsman. The Commission shall form a selection committee for selection of the Ombudsman. Provided that in case of superannuation or end of tenure of the Electricity Ombudsman, applications shall be invited at least six (6) months prior to the date of superannuation or the end of tenure, as the case may be:

Provided also that in case of occurrence of vacancy for the post of

20/ 25

C/LPA/97/2003 JUDGMENT DATED: 07/06/2021 DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

Electricity Ombudsman, by reason of death, resignation or removal, the applications shall be invited, without one (1) month from the date of occurrence of such vacancy.

3.4 The Ombudsman shall be a person of experience, ability, integrity and standing.

3.5 The following category of persons shall be eligible to be appointed as Ombudsman:

                     i.          A retired district judge; or
                     ii.         A retired secretary to State Government; or
                     iii.        Any person who has held the position of member or

chairperson of any statutory quasi­judicial body at the state level for at least 3 years; or iv. A retired chief engineer or an equivalent officer having experience in the electricity industry preferably distribution business.

v. Any officer who has worked in the power sector for at least thirty (30) years in Technical/Commercial field with at least three (3) years of experience of working in the State or Central Electricity Regulatory Commissions.

Provided that the Electricity Ombudsman shall preferably have working knowledge of the vernacular language of the State of Gujarat."

"Powers and Functions of the Ombudsman.

3.18. The Ombudsman shall have the following powers and duties:

i. To receive Representations, consider such

21/ 25

C/LPA/97/2003 JUDGMENT DATED: 07/06/2021 DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

Representations and facilitate settlement by agreement, through conciliation and mediation between the Licensee and Complainant, and pass an order in accordance with these Regulations where such conciliation is not reached.

ii. On receipt of information from the Forum regarding non­compliance of the Forum's order by the Distribution Licensee, the Ombudsman shall initiate proceedings for implementation of Forum's order by the Licensee.

iii. The Ombudsman shall in the first instance act as a counsellor or mediator in matters which are the subject matte of the Representation.

iv. The Ombudsman shall exercise general powers of superintendence and control over its office and shall be responsible for the conduct of business threat.

v. The Ombudsman shall have the powers to incur expenditure on behalf of the office. In order to exercise such power, the Ombudsman shall draw up an annual budget or its office in consultation with the Commission and shall exercise its powers of expenditure within such approved budget. The budget shall have the provisions or the administrative expenditure of the Ombudsman. The Commission shall sanction the required amount out of the Fund. The Commission shall, however, supervise the utilization of such amount and shall issue such instructions, from time to time, as it may deem reasonable and necessary."

22/ 25

C/LPA/97/2003 JUDGMENT DATED: 07/06/2021 DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

"Procedure to be followed by the Ombudsman.

3.22.The Representation shall be in writing, duly signed by the Complainant or his authorized representative, including facsimile or email mode, and shall contain the name and address of the Complainant, the facts giving rise to the Grievance supported by documents, if any, and may specify the relief sought from the Ombudsman.

3.23. The Ombudsman shall receive a Representation in writing including through email and facsimile mode. A Representation may be submitted in the format given in Annexure III. However, no Representation shall be rejected by the Ombudsman merely on the ground that it is not in the prescribed format. 3.24. The Representation shall contain a statement, duly signed by the Complainant, to the effect that the conditions stipulated in Regulation 3.19 above have been fulfilled, and that there is nothing, in the knowledge of the Complainant, which would bar the Ombudsman from considering the Representations, facilitating the settlement thereof, or passing an order in respect of the subject matter of Representation, or otherwise dealing with the Representation in accordance with the provisions of these Regulations.

3.25. The Ombudsman shall acknowledge the receipt of the Representation in the following manner:

i. Forthwith upon submission if the Representation is delivered personally; or ii. Post/email/fax within two working days of receipt of the Representation if the same is received through

23/ 25

C/LPA/97/2003 JUDGMENT DATED: 07/06/2021 DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

post/courier/email/fax.

The Ombudsman, while issuing acknowledgment, shall assign a unique case number and date to each Representation accept by it.

3.26. The Ombudsman shall maintain true and correct records of all Representations received from time to time."

22. The procedure to be followed by the Ombudsman in the

aforesaid Chapter­III of the Regulation 29 will be complied with by

the said authority in consonance with the aforesaid directions by

this Court and within time limit prescribed above and these

regulations will not be permitted to override or go beyond the

aforesaid time frame fixed by the Court.

23. In view of these, both these appeals are disposed of by

directing both the parties to appear before the Ombudsman

Authority created under Section 42(6) of the Act, where both the

parties viz. M/s. Agro Pack or parties concerned ­ M/s.

Ambeshwar Paper Mills Limited (in liquidation), represented by

the Official Liquidator and Dakshin Gujarat Vij Company Limited

(DGVC) can file their respective claims/counter

claims/submissions, within a period of four weeks from today and

24/ 25

C/LPA/97/2003 JUDGMENT DATED: 07/06/2021 DAKSHIN GUJARAT VIJ COMPANY LTD. & 2 other(s) Versus AMBESHWAR PAPER MILLS LTD. & 1 other(s)

no extension of time can be granted to them by the Ombudsman as

the present appeals are disposed of in the presence of their

respective counsel. The Ombudsman Authority is directed to hear

all the parties concerned and pass appropriate final orders on the

factual aspects of the matter without disturbing the findings of the

theft of power by the earlier consumer ­ M/s. Ambeshwar Paper

Mills Limited and pass appropriate orders on the factual aspects

left open to him for consideration, within a period of next four

months.

24. All the parties without any further notice in this regard shall

appear before the said Ombudsman Authority on 01.07.2021

Thursday at 11:00 a.m. and the final orders shall be passed by the

Ombudsman Authority in any case on or before 01.11.2021. The

compliance report/order passed by the Ombudsman Authority

along with the claims and counter­claims or within submissions

made by the parties before Ombudsman may be placed on the

record of this Court in the Month of November, 2021. No costs.

(DR. VINEET KOTHARI,J)

(B.N. KARIA, J) rakesh/

25/ 25

 
Download the LatestLaws.com Mobile App
 
 
Latestlaws Newsletter
 

Publish Your Article

 

Campus Ambassador

 

Media Partner

 

Campus Buzz

 

LatestLaws Guest Court Correspondent

LatestLaws Guest Court Correspondent Apply Now!
 

LatestLaws.com presents: Lexidem Offline Internship Program, 2026

 

LatestLaws.com presents 'Lexidem Online Internship, 2026', Apply Now!

 
 

LatestLaws Partner Event : IJJ

 

LatestLaws Partner Event : Smt. Nirmala Devi Bam Memorial International Moot Court Competition

 
 
Latestlaws Newsletter