J M D ALLOYS LIMITED Vs. BIHAR STATE ELECTRICITY BOARD
LAWS(SC)-2003-3-98
SUPREME COURT OF INDIA (FROM: PATNA)
Decided on March 06,2003

J.M.D.ALLOYS LIMITED Appellant
VERSUS
BIHAR STATE ELECTRICITY BOARD Respondents

JUDGEMENT

G. P. Mathur, J. - (1.) These appeals are directed against the judgment and order dated 18-4-2000 of a Division Bench of Patna High Court, by which the Writ Petition preferred by M/s. J.M.D. Alloys Ltd. was partly allowed and the Bihar State Electricity Board was directed to serve a fresh bill as per the observations made in the judgment and to restore the electricity connection within two days of the payment of the said bill.
(2.) M/s. J.M.D. Alloys Ltd. (hereinafter referred to as the petitioner) has a high tension industrial connection of electricity for running induction furnaces for manufacturing steel ingots. The officials of the Bihar State Electricity Board (hereinafter referred to as "the electricity board") inspected the petitioners factory premises on 26th and 27th August, 1999 and found that the seal fixed on CT/PT box was tampered. An FIR was lodged at the concerned police station on 27-8-1999 alleging that the petitioner had committed theft of 6.96 lakh units and had thereby caused a loss of Rs. 2.58 crores to the Electricity Board. The Electricity Board thereafter issued a bill dated 31-8-1999 for Rs. 8,85,77, 131/-. This bill was challenged by the petitioner by filing CWJC No. 8939 of 1999 before the High Court. The learned single Judge, who heard the writ petition vide his judgment/order dated 27-9-1999 directed that a show cause notice in the light of the observations made in the judgment be given to the petitioner within a week and it will be open to the petitioner to raise all its defences against the charge of committing theft of electrical energy and/or drawing electrical energy at a load higher than its contracted demand. It was further directed that the show notice shall be given by the General Manager-cum-Chief Engineer, Central Bihar Area, Electricity Board, Patna, or by any other officer of the Electricity Board of equal or higher rank and he shall pass final order after giving an opportunity of hearing to the petitioner. The liability of the petitioner was to be determined afresh on the basis of the final order passed by the Chief Engineer.
(3.) The Chief Engineer (Transmission) Bihar State Electricity Board thereafter issued a notice dated 13-10-1999 to which a reply was given by the petitioner on 20-10-1999. After affording an opportunity of personal hearing and considering the reply, the Chief Engineer passed an order on 27-10-1999 holding that Clause 16.9(b) and (c) of Tariff is attracted and the consumer M/s. J.M.D. Alloys Ltd. is liable to pay compensatory bill in terms of the aforesaid clauses of the Tariff. In accordance with the decision of the Chief Engineer, a fresh bill dated 29-10-1999 for Rs. 7,85,77, 131/- was issued. This bill was again challenged by the petitioner by filing a Writ Petition which was dismissed by a learned single Judge on 13-12-1999. Against the said decision the petitioner preferred a Letters Patent Appeal which was partly allowed by the Division Bench by the impugned judgment and order dated 18-4-2000. The Division Bench held that the petitioner is liable to pay electricity charges in accordance with Clause 16.9 of the Tariff. However with regard to fuel surcharge it was held that the same cannot be levied at thrice the rate in accordance with Clause 16.9 of the Tariff, which permits consumption of electricity to be assessed at thrice the rate per unit. Feeling aggrieved by the aforesaid decision, M/s. J.M.D. Alloys Ltd. have preferred Civil Appeal No. 8394 of 2002 and the Bihar State Electricity Board has preferred Civil Appeal No. 8395 of 2002.;


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