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Jharkhand State Electricity Board vs The State Of Jharkhand
2025 Latest Caselaw 2666 Jhar

Citation : 2025 Latest Caselaw 2666 Jhar
Judgement Date : 14 February, 2025

Jharkhand High Court

Jharkhand State Electricity Board vs The State Of Jharkhand on 14 February, 2025

Author: Deepak Roshan
Bench: Deepak Roshan
        IN THE HIGH COURT OF JHARKHAND AT RANCHI
                          W.P.(C) No. 5939 of 2004
Jharkhand State Electricity Board, Engineering Building, HEC Township,
Dhurwa, Ranchi, through its Electrical Executive Engineer (Comm. &
Rev.), Electric Supply Circle, Ranchi, Kusai Colony, PO & PS-Doranda,
District-Ranchi                                        ... ... Petitioner
                               Versus
1. The State of Jharkhand
2. The Steel Authority of India Ltd., a Company registered under the
Companies Act, having its registered office at Ispat Bhawan, Lodhi Road,
New Delhi, through one of its units namely Research & Development
Centre for Iron and Steel, PO & PS-Doranda, District-Ranchi
                                                      ... ... Respondents

CORAM:               HON'BLE THE CHIEF JUSTICE
                 HON'BLE MR. JUSTICE DEEPAK ROSHAN
For the Petitioner              : Mr. Mrinal Kanti Roy, Advocate
For the Respondents             : M/s. Indrajit Sinha,
                                  Ankit Vishal, Advocate
                                    --------
                               JUDGMENT
C.A.V On 20/01/2025                             Pronounced on 14/02/2025
Per, Deepak Roshan, J.

1. The instant writ application has been preferred by the petitioner for the following relief:

"(i) For quashing the order dated 04.06.2004 passed by the learned "Consumer Grievance Redressal Forum" (C.G.R.F in short) Ranchi in case no. 46/2003 presented by the respondent no.2, whereby and whereunder the said Learned Forum has been pleased to allow the prayer of the respondent no.2 setting aside the bills for the period March 1998 to January 1999.

(ii) For holding the bills/demand dated 28.2.2000 and 19.2.2000 raised upon the respondent no.2 as proper and also for a direction upon the respondent no.2 to pay the same alongwith statutory surcharges.

And/Or

(iii) For passing such other or further order/orders as Your Lordships may deem fit and proper in the interest of Justice."

2. The brief fact of the case is that the 2nd respondent has availed power supply from the then B.S.E.B at 33,000 Volts vide EHT Agreement effective from 29.03.1984 for a contract demand of 1675 KVA. From

01.07.1993, the tariff of the Board came into effect and as per clause 16.4.1, the capacity of the transformer of H.T and E.H.T consumer were restricted up to 150% of the contract demand.

A notice vide letter dated 15.03.1997 was issued to the 2nd respondent and directed it to either increase the contract demand or install the transformer below 2513 KVA within six months.

3. The 2nd respondent did not choose to reduce the capacity of the transformer and as such the installation of 2nd respondent was inspected on 04.02.1998 by a team of the Jharkhand State Electricity Board (hereinafter to be referred as petitioner-Board) and they found that the installed capacity of the transformer is 4460 KVA and all connected with the power supply. The petitioner-Board thereafter treated the contract demand of the 2nd respondent as 2974 KVA and served a bill dated 02.12.1998 for an amount of Rs.55,39,989.00 containing an amount of Rs.83,52,310.00 kept in abeyance on account of fuel surcharge balance and a notice dated 24.12.1998 was served to the 2nd respondent.

4. Thereafter, by letter dated 23.03.1999, the 2nd respondent informed to the petitioner that it has disconnected the power supply from the stand-by transformer since end of January 1999 and thereafter the 2nd respondent acted upon the actual load claimed by it. However, vide supplementary bill dated 28.02.2000 the 2nd respondent was served with a supplementary bill for fuel surcharge for an amount of Rs.1,62,08,251.00. Vide letter dated 22.03.2000 the authorities of the petitioner again wrote to the 2nd respondent requesting for payment of outstanding bills till January 1999.

5. Being aggrieved, the 2nd respondent filed a writ petition being C.W.J.C No. 1191 of 2000 (R) assailing the bill prior to January 1999 but the same was dismissed by an order dated 22.02.2001 by holding that the 2nd respondent is liable to pay the demand raised by the petitioner. Thereafter, the 2nd respondent was served a bill of Rs.79,93,572.00 on account of energy charges and D.P.S up to the month of January 1999.

Against the aforesaid order of the learned Single Judge, the 2nd respondent filed an appeal being L.P.A No. 122 of 2001 and by order dated 26.11.2002, the parties were referred for their grievance to the Consumer Grievance Redressal Forum. Pursuant thereto, the 2nd respondent filed an application which was registered as Case No. 46 of 2003 and the same was allowed on 04.06.2004 by holding that it was provided in the tariff that if the consumer is found to have installed transformer for more than 150% of the contract demand, their supply should be disconnected which the petitioner-Board has not followed and had taken a different action.

6. Assailing the impugned order passed by the Consumer Grievance Redressal Forum, learned counsel for the petitioner draws attention of this Court towards clause 4(a) of the Agreement and submits that as per clause 4(a) of the Agreement it is specifically stipulated as under:

"4 (a) Subject to the minimum contract demand applicable for the category of supply in which the consumer falls as per Board's tariff, the consumer shall pay to the Board for the energy so supplied and registered or taken to have been supplied as aforesaid at the appropriate rates applicable to the consumer according to the tariffs framed by the Board and in force from time to time the presently enforced tariffs being given I the schedule to this agreement for easy reference. Such reference is subject to provisions of clause 14 appearing hereinafter."

7. Referring to the aforesaid clause and also clause 16.4 which deals with the transformer capacity and clause 16.5 which deals with surcharge for exceeding the contract demand of the Gazette Notification, learned counsel tries to support the impugned bill (Annexure-5 to the writ petition) however, from perusal of the bill dated 02.12.1998 it appears that it is not for the surcharge but it is the bill on account of energy charges and D.P.S up to the month of January 1999, though the capacity of the transformer of H.T and E.H.T consumer were restricted up to 150% of the contract demand. To appreciate the contention of the petitioner with regard to question of payment of the amount raised in the bill it is necessary to peruse the tariff notification dated 23.06.1993. For brevity the same is

quoted below:

16.4. TRANSFORMER CAPACITY "16.4.1. The transformer capacity of H.T. and E.H.T. consumers shall not be more than 150 per cent of the contract demand.

If any consumer is found violating this provision his service connection will be disconnected.

16.5. Surcharge for exceeding the contract demand:-

If during any month in a financial year (April to March next year) the actual maximum demand of a consumer exceeds 110 per cent of the contract demand then the highest demand so recorded shall be treated as the contract demand for that financial year and the minimum base charges, both in respect of maximum demand and energy charge shall be payable on that basis. ..."

8. From perusal of 16.4.1 of the notification, it is ample clear that if any consumer is found violating the provision, his service connection will be disconnected. The contention of the petitioner that Clause-16.5 with regard to surcharge, will be applicable in the instant case is misplaced in view of the fact that there is no provision in the tariff that if the installed capacity of the transformer is found to be above 150% of the contract, the Board can raise enhance bill based on installed capacity of the transformer.

Clause-16.4.1 is very specific that in case the consumer is found to have installed the transformer of capacity exceeding 150% of the contract demand, their supply should be disconnected which the petitioner- Board did not adhere to, and has taken a different action by way of raising a bill on the basis of installed capacity. It is further necessary to observe that on the one hand, the ground for raising the bill is not the surcharge; rather the bill was on account of energy charges, and D.P.S up to the month of January 1999, and on the other hand, the surcharge for exceeding the contract demand will not be applicable in the instant case.

9. There can be a case that if the transformer capacity of H.T and E.H.T consumer used is less than 150% of the contract demand then only surcharge for exceeding the contract demand will be applicable on actual use. The learned Tribunal has rightly held that in case, the consumer is found to have installed transformer of capacity exceeding 150% of the contract demand, their supply should be disconnected which the petitioner

has not done.

10. We therefore do not find any error with the impugned order dated 04.06.2004 rendered by the Consumer Grievance Redressal Forum. Accordingly, the instant writ application stands dismissed. Pending I.A, if any, also stands disposed of. However, there shall be no order to cost.

(M. S. Ramachandra Rao, C.J)

(Deepak Roshan, J.) Amit A.F.R

 
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