VENKATARAMIAH, J. - (1.) THE Judgment of the court was delivered by
(2.) THESE two appeals by special leave are filed against the judgment dated 13/08/1970 of the High court of Allahabad in Special Appeal No. 34 of 1969 (City Board, Mussoorie v. State Electricity Board by the Uttar Pradesh Electricity Board (hereinafter referred to/as 'the Electricity Board') constituted under the Electricity (Supply) Act, 1948 (hereinafter referred to as 'the Act') and the City Board, Mussoorie, a local authority (hereinafter referred to as 'the City Board') respectively. The City Board as a licensee under the Indian Electricity Act, 18 1910 used to get bulk supply of electric energy from the Electricity Board from the Ganga-Sarda Grid and in its turn was distributing it to the consumers within its jurisdiction. In the year 1962, under a notification dated 24/04/1962 issued under S. 46 of the Act, the tariff payable by the City Board and other licensees in the Ganga-Sarda Grid was fixed by the Electricity Board. The relevant portion of the Tariff was as follows: 1. Applicability. This rate schedule is applicable to all licensees situated in Ganga-Sarda Grid area and taking supply in bulk from the Board. 2. Character of service. A.C., 3 Phase, 50 cycles, 11,000 volts. Alternatively, the supply can be given at a voltage lower than 11 KV in which case an additional charge at 7 1/2 per cent on the total amount of the bill will be levied. If the consumer takes supply at a standard voltage above II KV, a rebate of 5% will be allowed to him by the Board on the total amount of the bill calculated at the rates prescribed for supply at KV. JUDGEMENT_16_2_1985Html1.htm 4. (i) Chargeable Demand. The chargeable demand for the month shall be defined as the actual demand during the month or 60 per cent of the contracted demand or 75 per cent 19 of the highest demand which occurred during the preceding 11 months, whichever is the highest. (ii) Coal Clause. The above rates shall be subject to a coal price adjustment at the rate of 0.001 per Kwh. increase or decrease for every one P of variation above or below Rs. 40.00 per tonne of coal delivered at the bunkers in the Harduaganj Generating Station.... 5. Determination of Demand. Demand measurement shall be made by suitable instruments at the point of delivery. The demand for any month shall be defined at the highest average load measured in Kilovolt-amperes during any 30 consecutive minutes period of the month. The tariff so fixed was enhanced by another notification dated 30/09/1967 by twenty per cent and the enhanced rate came into force on 1/12/1967. Under S. 58 of the Act, the Electricity Board or where no such Board was constituted, the State government had the power to direct the amortisation and tariffs policies of any licensee, being a local authority, with respect to its licensed undertaking in such manner as the Electricity Board or the State government, as the case may be, after giving the local authority a reasonable opportunity of being heard, considered expedient for the purposes of the Act. The licensee, being a local authority, the provisions of any other law or of any rules made or directions given thereunder notwithstanding, was bound to give effect to any such directions of the Electricity Board or the State government, as the case may be. The Electricity Board, however, could not issue any directions under S. 58 of the Act except after obtaining the prior approval of the State government. The City Board had moved the State government on 13/09/1966 for permission to enhance the rates for supply of electric energy to consumers. No such sanction was given till 23/03/1968. The City Board, therefore, filed a petition under Article 226 of the Constitution questioning the validity of the tariff fixed under the notification dated 24/04/1962 and the enhancement made under the notification dated 30/09/1967. It may, however, be stated here that subsequently on 20/04/1968, the City Board was permitted to raise the charges for light and fan by two paise per unit which came to 6% or 7% of the original rates and by 10% for electric energy supplied for other purposes.
(3.) THE City Board challenged the notification issued on 24/04/1962 on the ground that it was not in conformity with Section 46 of the Act. It questioned the enhancement made on 30/09/1967 on the ground that it had not been permitted to enhance correspondingly the rates chargeable by it to the consumers 20 even though in its vicinity the Electricity Board itself was supplying electric energy to consumers at a much higher rate. THE petition was contested by the Electricity Board. The writ petition was heard by a Single Judge of the High Court. He dismissed the petition. The City Board, thereafter filed an appeal before the division bench of the High court. The Division Bench allowed the appeal in part. Aggrieved by the judgment of the Division bench, the City Board and the Electricity Board have filed the above appeals by special leave.;