- (1.) This appeal by special leave arises out of an order dated 17th January, 2007 passed by the High Court of Uttaranchal at Nainital whereby Writ Petition No. 936 of 2001 filed by respondent M/s Kashi Vishwanath Steels Ltd. has been allowed and order dated 7th December, 2001 passed by the Executive Engineer (Electricity) Distribution Division, District Udham Singh Nagar, quashed.
(2.) Uttar Pradesh State Electricity Board was established by the State of Uttar Pradesh in terms of the provisions of the Electricity (Supply) Act, 1948. With the enactment of Uttar Pradesh Electricity Reforms Act, 1999 the Government constituted Uttar Pradesh Electricity Regulatory Commission. In terms of a Notification dated 7th August, 2000 the Commission stipulated the tariff for the supply of electricity effective from 9th August, 2000. The rate schedule for large and heavy power, inter alia, provided that consumers who opt for power supply during the restricted/peak hours shall pay an additional surcharge of 15% on the amount billed at the "Rate of Charge" under item-4A of the Schedule. It further provided that consumers getting power supply from, independent feeders emanating from 400/220/132 KV sub-stations shall pay an additional surcharge of 15% on demand and energy charges subject to the condition that these consumers will get assured electricity supply of minimum 500 hours in a month. In case of shortfall in the guaranteed hours of electricity supply, the consumers were entitled to a rebate @ 1% for each 10 hours shortfall on the bill amount computed under "Rate of Charge". Relevant portion of the Tariff Rate Schedule HV-2 forming part of Notification dated 7th August, 2000, reads as under: Notes: (a) In respect of consumers who opt for power supply during restricted/peak hours an additional surcharge of 15% on the amount billed at the "Rate of Charge" under item 4-A above, i.e. Demand Charge and Energy Charge shall be levied. However, in respect of consumers getting power supply on independent feeders emanating from 400/220/132 KV sub-stations an additional surcharge of 15% on demand and energy charges shall be charged further subject to the condition that these consumers will get an assured supply of minimum 500 hours in a month. In case of short fall in above guaranteed hours of supply a rebate @ 1% for each 10 hours short fall will be admissible on the bill amount computed under "Rate of Charge".
(3.) Respondent- Kashi Vishwanath Steels Ltd. (hereinafter referred to as the 'KVSL' for short) is a public limited company registered under the Companies Act. On 9th November, 1995 it had entered into an agreement with Uttar Pradesh Power Corporation Ltd., Lucknow (respondent No. 4 in this appeal) for the supply of electrical energy for the production of Furnace and Steel Rolling Manufacturing (Process) unit at Narayan Nagar Kashipur in the form of three phase Alternating Current at a declared pressure of 33000 Volts and a power of not exceeding 4800 K.V. amperes. The said agreement was followed by a fresh agreement executed on 28th March, 2000 between the company and the Uttar Pradesh Power Corporation Ltd., inter alia, providing that the company shall pay for the supply of energy at the rates stipulated by the supplier from time to time and that the rate schedule applicable at the time of execution of the agreement could be revised at the discretion of the supplier. With the tariff prescribed by the U.P. Electricity Regulatory Commission becoming effective for the supply received by the consumer-company the latter became liable to pay in terms of the said tariff. Some confusion, however, appears to have arisen in regard to the interpretation of the tariff prescribed by the Commission particularly in relation to the levy of 15% surcharge upon consumers who drew power from independent feeders. The Corporation purported to clear the mist by issuing a circular dated 8th September, 2000 whereunder it purported to give certain guidelines to the concerned subordinate officers and demanded strict compliance thereof. The circular, inter alia, provided that if consumers connected to independent feeders did not want electricity supply for the guaranteed period of 500 hours, no such surcharge of 15% could be levied provided they intimate to the Executive Engineer that they do not want the guaranteed supply for 500 hours. The relevant portion of the circular reads as under: 2.(a) In the rate schedule HV-2, as a result of the guarantee of 500 hours electricity supply of independent feeder from 400, 220 and 132 KV sub stations, 15% surcharge shall be levied. Consumers of this category shall be ensured 500 hours electricity supply per month. Due to lesser electricity supply than 500 hours, they shall be given 1% deduction for every ten hours in their electricity bill. If consumers connected with these independent feeders do not want guarantee of 500 hours electricity supply then, in that event, they shall not be imposed 15% surcharge in their bills. Such consumers shall intimate the Executive Engineer distribution by registered post that they do not want guarantee of 500 hours electricity supply. The Executive Engineer shall issue office memo in this regard. If any consumer of this category does not give any option then he shall be ensured 500 hours electricity supply and 15% surcharge shall be taken. S.S.O./Junior Engineer shall be responsible to ensure that the consumer in question does not use electricity during the restricted period. If consumers of this category use electricity in the restricted period also then they shall be charged 15+15 = 30% surcharge.;