- (1.) The petitioner is the owner of the petitioner-Factory, who consumes electricity for its industrial activity. He is aggrieved by the claim made by the respondents for Rs. 91,985/- being the interest on belated payment of Additional Security Deposits, for the years 1989-90; 1991 and 1992. According to the petitioner, the consumer is not liable to pay any interest on the belated payment of Additional Security Deposits.
(2.) Regulation 31.02 framed by the Karnataka Electricity Board provides for the Additional Security Deposit (ASD for short). It says that:- "After the installation is serviced, if the deposit held falls short of three times the highest bill amount during any single month during January to October of the calendar year, the difference shall become payable by the consumer as additional security deposit, within 30 days from the date of notice." The note excludes certain amounts from consideration and it is unnecessary to be referred here. The security deposit and the ASD shall be payable as indicated in Regulation 31.03 partly by cash and partly by Bank Guarantee. There is no dispute about the validity of this Regulation. The respondents rely on Regulation 30.05 to sustain their claim for interest on belated payment of ASD.
(3.) Regulation 30.05 looks to be part of the main Regulation 30 with the Heading "Power Supply Charges" while Regulation 31 appears with the Heading "Security". Earlier Regulation 30.05 stated that: "In case of belated payments, simple interest will be levied at the rate of 2% per month or part thereof from the expiry of due date as per clause 30.03 subject to a minimum of Re. 1/- for LT installations and Rs. 100/-for HT installations." This was amended in January 1992. The Amended Regulation 30.05 has an independent Heading "Levy of Interest". Earlier there was no such heading. The relevant part of the Amendment reads as follows:- "Levy of interest: In case of any belated payment, simple interest will be levied at the rate of 2% per month or part thereof from the expiry of due date, subject to a minimum of Re. l/- for L.T. installations and Rs. 100/- for H.T. installations." The amendment has enlarged the scope of Regulation 30.05 while under the earlier Regulation 30.05 simple interest was levied in case of "belated payment", after the amendment the Regulation is attracted to any belated payment. Further, earlier the Regulation governed the subject matter referred in Regulation 30.05 pertaining to the Bill amount to be payable within 15 days. The present Regulation omitted any reference to Regulation 30.03. The liability for the interest arises from the expiry of 'due date'. Though Regulation 30.05 looks to be a part of Regulation 30 in reality it is an independent Regulation governing levy of interest on "any belated payment" as the amendment has made it clear. The position is made further clear by the addition of heading to the Regulation. In other words, the subject of 'Levy of Interest' on 'any belated payment' is now covered by Regulation 30.05. The object seems to safeguard the interest of the financial position of the Electricity Board, which has to supply electricity to the consumer at all times and thereafter has to collect the Bill towards the consumption charges. In other words, the investment of the Electricity Board would bear return only after the consumer pays the amount; until then the Electricity Board shall have to shoulder the burden of supplying the electricity and await the payment by the consumer in future. For this purpose the Electricity Board may have to some times even borrow the funds from elsewhere paying interest thereon. This burden is sought to be reduced by insisting upon the consumers to make security deposit and the additional deposit. The basis for the ASD is indicated in Regulation 31.02 itself. It is made proportionate to the enhanced consumption by a consumer. The ASD payable, based on the difference and computed in terms of Regulation 31.02 becomes payable within 30 days from the date of notice. The liability of the consumer to make the payment of ASD is within 30 days from the date of notice, and if there is a failure there will be a default on the part of the consumer. Having regard to the investment required of by the Electricity Board and to prevent the recurrence of default on the part of the consumers, the Regulation contemplates the levy of interest under Regulation 30.05. This cannot be considered as an unreasonable requirement to be, prescribed under the Regulation.;