NAVA BHARAT FERRO ALLOYS LTD Vs. TRANSMISSION CORPORATION OF A P LTD
LAWS(SC)-2010-11-75
SUPREME COURT OF INDIA (FROM: ANDHRA PRADESH)
Decided on November 18,2010

NAVA BHARAT FERRO ALLOYS LTD Appellant
VERSUS
TRANSMISSION CORPORATION OF A.P. LTD. Respondents

JUDGEMENT

- (1.) These appeals by special leave arise out of an order dated 6th June, 2002 passed by the High Court of Andhra Pradesh whereby Writ Petitions No.9081 of 1999 and 13458 of 1993 filed by the appellant have been dismissed and the demand for additional charges/surcharge payable on the delayed payment of outstanding electricity dues raised under Clause 32.2.1 and 34 of the Terms and Conditions of supply (TCS) upheld. Facts necessary for the disposal of these appeals may be summarised as under:
(2.) The appellant is a public limited company engaged in the manufacture of Ferro Silicon. The industry set up by the appellant is energy intensive in as much as it consumes approximately 10,000 units of electricity for every ton of Ferro Silicon produced. The appellant's case is that the respondent-Electricity Board had initially agreed to supply power to the appellant @ 6 paise per unit but revised the said rate to 11 paise per unit in the year 1975. The revised rate was in the beginning applicable only to four consumers who were similarly situate but the number of such power intensive consumers gradually rose to 84. On 13th December, 1983 the Board revised the general tariff but a separate order applicable to power intensive consumers like the appellant was issued on 29th January, 1984. Aggrieved by the said order which permitted charging of a higher rate of tariff, the appellant and few others filed writ petitions before the High Court of Andhra Pradesh, which were dismissed by a Division Bench of that Court on 3rd April, 1985. During the pendency of the writ petition, however, the High Court had granted an interim order of stay against the collection of the disputed amount in the following terms: "There shall be stay of operation of the order in so far as writ petition is concerned, subject to the condition if the writ petitioner pays at the rate of 47.89 paise per unit with effect from April 1984 onwards, furnishing Bank guarantee for the balance to the satisfaction of the Superintending Engineer concerned in four weeks from today. In default of any of the conditions, the stay stands vacated. The bank guarantee furnished shall be renewed for every 3 months. If the petitioner has already paid the demand for the month of April, on the basis of the impugned order, this order passed by me shall be effective from the month of May 1984 otherwise it will be operative from April, 1984."
(3.) The dismissal of the writ petitions filed by the appellants was assailed by them before this Court by way of special leave petitions nos.9206-9207/1985 (C.A. Nos.2569-2570/1985). This Court by an order dated 22nd July, 1985 while granting leave to appeal directed continuation of interim arrangement made by the High Court in the following terms: "As regards stay, after hearing learned counsel for the parties we felt that the order passed by the High Court dated 24.4.1984 which operated during the pendency of the writ petitions will continue to operate during the pendency of the appeals with the modification that the rate of 47.89 paise per unit mentioned in the order is rounded to 48 paise per unit. We would, however, like to make it clear that because of the High Court's order dated 13.4.1985, for a couple of months, there was no such orders in regard to future payments and the Electricity Board has received the dues at the enhanced rates in lump sum from some of the consumers. There will no question of refunding the amounts back to these consumers. The bank guarantee already furnished by the petitioners/appellants will be kept alive from time to time and will cover all the differences including the future difference.";


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