BHILAI POWER SUPPLY COMPANY LIMITED Vs. STATE OF MADHYA PRADESH
LAWS(SC)-2003-1-83
SUPREME COURT OF INDIA (FROM: MADHYA PRADESH)
Decided on January 21,2003

BHILAI POWER SUPPLY COMPANY LIMITED Appellant
VERSUS
STATE OF MADHYA PRADESH Respondents

JUDGEMENT

- (1.) I.A. Nos. 13-16/2002 Prayer in these IAs is for direction to the M. P. State Electricity Board (in short 'the MP Board') to refund security deposits made along with interest thereupon, in compliance with the judgment of this Court in C.A. Nos. 1140-1143/2000.
(2.) The prayer has been resisted by the M.P. Board on the ground that pursuant to the Madhya Pradesh Re-organisation Act, 2000 (in short the Reorganisation Act') the original Board has been succeeded by the two Boards i.e. M.P. Board and the Chattisgarh Electricity Board (in short 'Chattisgarh Board'). The liability, if any, should be discharged by the Chattisgarh Board. It is pointed out that originally there were 9 projects which were involved and 7 related to the re-organised M.P. State while 2 related to the newly constituted Chattisgarh State. Two projects have not come into existence is the stand of the Chattisgarh State. It was further submitted that in terms of Section 58 of the Re-organisation Act, the Central Government has to quantify the assets and liabilities and the follow-up action to be taken. Since that has not been done finally, it would be inappropriate to direct the M.P. Board to liquidate the liabilities.
(3.) A somewhat similar stand as adopted by the State of M.P. In response, learned counsel for the Chattisgarh State and the Chattisgarh Board submitted that the amounts collected as security deposit were kept as fixed deposits in scheduled banks by M.P. Board and, therefore, it is the responsibility of the M.P. Board to liquidate the liability. Reference was also made to an order passed by this Court in IAs 37-40 in C.A. Nos. 1140-1143/2000 where the M.P. Board had undertaken to refund the security deposits.;


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