ANDHRA STEEL CORPORATION LIMITED Vs. ANDHRA PRADESH STATE ELECTRICITY BOARD
LAWS(SC)-1991-5-9
SUPREME COURT OF INDIA (FROM: ANDHRA PRADESH)
Decided on May 02,1991

ANDHRA STEEL CORPORATION LIMITED Appellant
VERSUS
ANDHRA PRADESH STATE ELECTRICITY BOARD Respondents

JUDGEMENT

Ojha, J. - (1.) These appeals are directed against the judgment of the Andhra Pradesh High Court dated 10th April, 1981 rendered in a batch of writ petitions, reported in M/ s. Poddar Projects Ltd. (Multi Steels) v. A.P. S.E. Board, AIR 1982 Andh Pra 189. For the sake of convenience, these appeals are being decided by a common judgment. In order to appreciate the respective submissions made by learned counsel for the parties necessary facts may be stated in brief.
(2.) The appellants are some of the mini steel plants of Andhra Pradesh. Revised terms and conditions of electricity supply were notified by the Andhra.Pradesh State Electricity Board (for short the Electricity Board) in B.P. Ms. No. 690 (Coml.) on 17-9-75 to be effective from 20th October, 1975. Subsequently, G.O.Ms. No. 832 dated 2nd November, 1977 was issued by the State Government whereby concessional tariff of 0.11 p. per unit for the period of three years commencing from Ist November, 1977 and ending with 31 st October, 1980 was applied in respect of the following five consumers:- 1. Andhra Pradesh State Corporation Limited 2. Poddar Projects Limited 3. A. K. Corporation Limited 4. Andhra Steels, Vishakapatnam 5. A.K. Corporation, Vishakapatnam.
(3.) This concessional tariff was subsequently enhanced to 12.5 p. by the State Government vide G.O.Ms. No. 876 dated 26th November, 1977. The concessional tariff referred to above, however, was not extended to M/s. Andhra Steel Corporation by the Electricity Board by passing a resolution in its meeting held on 26th November, 1977 inasmuch as the Andhra Steel Corporation had already filed a writ petition inter alia claiming that the agreement which it had entered into with the Electricity Board for availing high tension electric supply was no longer in force. In respect of the remaining four steel plants referred to above the Electricity Board extended the concessional tariff of 12.2 p. subject to escalations and other terms and conditions of supply and fixed minimum consumption of 403.325 units/KVA. This was done by issuing B.P. Ms. No. 78 dated 20th January, 1978. These four mini steel plants were,.however, subsequently directed by the Electricity Board vide B.P. Ms. No. 436/ Coml. dated 3rd May, 1978 to be charged at a tariff rate of 16 p. per unit instead of 12.2 p. without reference to the maximum demand charges from 1 st March, 1978. The Electricity Board also sought clarification from the State Government vide its letter No. DE (Coml.) 1205-11/ 76-32 dated 27th November, 1978 with regard to fixation of minimum consumption of 403.325 units/ KVA and fixation of concessional tariff at 0.16 p. per unit in view of the new levy of central excise duty and in view of the increased cost of generation. The State Government vide G.O. Ms. No. 697 dated 5th December, 1978 issued a clarification that the aforesaid G.O. Ms. Nos. 832 and 876 did not preclude the Electricity Board from applying the normal terms and conditions of supply and prescribing the monthly minimum charges and the working out of the escalated rate from time to time. Subsequently the State Government vide G.O. Ms. No. 146 dated 12th March, 1979 withdrew the concessional tariff contemplated by G.O. Ms. Nos. 832 and 876 referred to above. This was done on the representation of the Electricity Board which in its turn through its B.P. Ms. No. 830 dated 2nd April, 1979 cancelled B. P. Ms. Nos. 78 and 436 with effect from 12th March, 1979. The State Government subsequently also issued G.O. Ms. No. 10 dated 16th January, 1980 whereby it was clarified that its intention in issuing the earlier G.O. Ms. No. 697 dated 5th December, 1978 was to allow the concessional tariff rate notified in G. O. Ms. No. 876 without limiting the concession by imposition of minimum consumption charges till the end of March, 1979. The Electricity Board felt aggrieved by this G.O. and requested the Government to cancel it for the reasons set out in its letter dated 28th January, 1980.;


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