D. P. Mohapatra, J. - (1.) In these appeals filed by special leave, the U.P. State Electricity Board (for short 'the Board'), a statutory body constituted under the Electricity (Supply) Act, 1948 assails the judgment of the Division Bench of the Calcutta High Court vide its judgment dated 26-8-1982 in the appeal from Original Order No. 229 of 1980 dismissing the appeal filed by the Board and confirming the judgment passed by the single Judge.
(2.) The core question that arises for determination in these cases is whether the Board is liable to pay to the liquidators of the company (in liquidation) respondent herein the sum of Rs. 68,29,636.87 together with interest being the amount collected by the Board between the 4th/5th February, 1975 till 30th April, 1979 towards arrears of electricity charges for the electricity supplied to consumers during periods prior to the take over of the undertaking by the Board, and all collections made by the Board subsequently on that account.
(3.) The factual matrix of the case, which is not in dispute, may be stated thus : Banaras Electric Light and Power Co. Ltd. (hereinafter described as 'the Company') was the holder of the license dated 6th February, 1925 for generation, supply and distribution of electric energy in the city of Banaras under the Indian Electricity Act, 1910 (for short 'the Act'). On 1st February, 1974 a notice under S. 6(1) of the Act was served upon the company notifiying the intention of the Board to purchase the undertaking of the company. The possesion of the undertaking was taken over at midnight between 5th and 6th February, 1975. The undertaking of the company thereupon vested in the Board. On the date of the take over of the undertaking there were certain uncollected dues for the electricity supplied by the Company to its consumers up to the date of vesting which were thereafter collected by the Board. Up to 30th April, 1979 a total sum of Rs. 68,29,636.87 had been collected. In the meantime the company had gone into voluntary liquidation and joint liquidators had been appointed. On the application filed by the liquidators on 30th January, 1980 under Ss. 468 and 518(1)(b) and (4) of the Companies Act, 1956 seeking an order against the Board to pay to the liquidators of the company the aforementioned sum together with interest thereon and all further collections made by the Board from 1st May, 1979 till date. The gist of the case of the company was that the aforementioned amount was the dues of the company from its consumers for the electricity supplied before the date of vesting, which the Board collected from the consumers after vesting of the undertaking. The company contended that the amount was collected by the Board as agent of the company and the Board held that the amount as a trustee. Therefore, the Board was required in fact and in law to make over the amount collected by it and any further sum which it may collect from the consumers towards such arrear dues of the company to the liquidators.;