ROHTAS INDUSTRIES LIMITED USHA MARTIN BLACK LIMITED SHRIRAM BEARINGS LIMITED Vs. CHAIRMAN BIHAR STATE ELECTRICITY BOARD:BIHAR STATE ELECTRICITY BOARD:BIHAR STATE ELECTRICITY BOARD
LAWS(SC)-1984-3-2
SUPREME COURT OF INDIA (FROM: PATNA)
Decided on March 02,1984

ROHTAS INDUSTRIES LIMITED,USHA MARTIN BLACK LIMITED,SHRIRAM BEARINGS LIMITED Appellant
VERSUS
CHAIRMAN,BIHAR STATE ELECTRICITY BOARD,BIHAR STATE ELECTRICITY BOARD Respondents

JUDGEMENT

Balakrishna Eradi, J. - (1.) These appeals (by special leave) and the Special Leave Petition involve common questions concerning the validity of the supplementary bills issued to the appellants by the 1st respondent, Bihar State Electricity Board, for "fuel surcharge" as per the revised tariff dated 1st April, 1979, and hence they were heard together. Having regard to the fact that by reason of interlocutory orders passed by this Court, the realisation of large amounts demanded from the appellants by the respondent by way of charges for electric energy supplied by it stood stayed and the consequent urgency in passing final orders in these cases, as soon as the hearing was completed we passed the following order announcing the conclusion reached by us:"All these Civil Appeals and Special Leave Petition are dismissed with costs in each case. All interim orders made in each of these matters at various stages are vacated. Reasons will follow". We now proceed to state the reasons in support of the said conclusion.
(2.) The Bihar State Electricity Board (hereinafter called 'the Board') is incorporated under Section 12 of the Electricity (Supply) Act 1948 (hereinafter referred to as 'the Act'). The general powers and duties of the Board are set out in Section 18. Thereunder the Board has the duty, inter alia, to arrange for the supply of electricity that may be required within the State and for the transmission and distribution of the same in the most efficient and economic manner, with particular reference to those areas which are not, for the time being, supplied or adequately supplied with electricity. Section 49 of the Act makes provision for the sale of electricity by the Board to persons other than the licensees and to frame uniform tariffs for the purposes of such supply. That section is in the following terms: "49. (1) Subject to the provisions of this Act and of regulations, if any, made in this behalf, the Board may supply electricity to any person not being a licensee upon such terms, and conditions as the Board thinks fit and may for the purposes of such supply framed uniform tariffs. (2) In fixing the uniform tariffs the Board shall have regard to all or any of the following factors, namely:- (a) the nature of the supply and the purposes for which it is required; (b) the co-ordinated development of the supply and distribution of electricity within the State in the most efficient and economical manner, with particular reference to such development in areas not for the time being served or adequately served by the licensee; (c) the simplification and standardisation of methods and rates of charges for such supplies; (d) the extension and cheapening of supplies of electricity to sparsely developed areas. (3) Nothing in the foregoing provisions of this section shall derogate from the power of the Board, if it considers it necessary or expedient to fix different tariffs for the supply of electricity to any person not being a licensee, having regard to the geographical position of any area, the nature of the supply and purpose for which such supply is required and any other relevant factors. (4) In fixing the tariff and terms and conditions for the supply of electricity, the Board shall not show undue preference to any person."
(3.) In exercise of the power conferred by the above section, the Board has been, from time to time, issuing notifications fixing the tariff and the terms and conditions for the supply of electricity to the various classes of consumers. In supersession of the tariff rates till then obtaining under an earlier notification, the Board by its "tariff notification 1979" published in the Bihar Gazette Extraordinary No. 355 dated 6-4-1979, issued a revised tariff for all categories of consumers served by it. The said tariff was to take effect from 1st April, 1979.;


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