MIRZAPUR ELECTRIC SUPPLY COMPANY LIMITED Vs. STATE OF U P
LAWS(ALL)-1974-3-7
HIGH COURT OF ALLAHABAD
Decided on March 28,1974

MIRZAPUR ELECTRIC SUPPLY COMPANY LIMITED Appellant
VERSUS
STATE OF UTTAR PRADESH., Respondents

JUDGEMENT

G. C. Mathur, J. - (1.) THESE five writ petitions have been filed by five licensees who had been granted licences under the Indian Electricity Act, 1910, for generation and distribution of electrical energy. The U. P. State Electricity Board has served notices upon each one of the licensees to deposit various sums of money as security. These notices have been challenged in these writ petitions. Since several common questions arise in these writ petitions, it will be convenient to dispose them of by one judgment.
(2.) THE Electricity (Supply) Act, 1948, was enacted by the Central Legislature for the rationalisation of the production and supply of electricity and generally for taking measures conducive to electrical development. It, inter alia, provides for the setting up of State Electricity Boards, for the generation of electrical energy by the Boards and for the supply of electrical energy by the Boards to the licensees. All the petitioners are being supplied electrical energy in bulk by the U. P. State Electricity Board. The Uttar Pradesh Legislature enacted the Electricity (Supply) (Uttar Pradesh Amendment) Act, 1972, whereby it introduced the following Section 47-A in the Electricity (Supply) Act, 1948 :- "47-A. Security - Notwithstanding anything in this Act and notwithstanding that no arrangements have been mutually agreed under Section 47 or that no regulations have been made in that behalf - (a) the Board shall not be bound to comply with any requisition to supply electricity to a licensee unless the licensee, within fourteen days after the service on him by the Board of a notice in writing in that behalf, tenders to the Board such security as the Board deems sufficient; (b) the Board shall be entitled to discontinue such supply if the licensee has not already given security, or if any security given by him has become invalid or insufficient, and such licensee fails to furnish security or to make up the original security to a sufficient amount, as the case may be, within seven days after the service upon him of notice from the Board requiring him so to do." It is under the provisions of Section 47-A introduced by the U. P. Amendment that the security amounts have been demanded from the petitioner-licensees. In Writ Petn. No. 3808 of 1973, the Banaras Electric Light and Power Company Ltd. is the main petitioner. It had obtained a licence under the Indian Electricity Act, 1910, for generating and disdistribution of electrical energy and the licence is still continuing and this company is generating its own power and is also purchasing electrical energy in bulk from the Board. It first received a notice dated January 17, 1973, demanding a security amounting to Rs. 13,50,000 at the rate of Rs. 60 per K.V.A. This notice was superseded by another notice dated May 16, 1973. Under this later notice a sum of Rs. 20,02,000 was demanded as security. The notice stated that the amount of security was equal to two months' average consumption charges.
(3.) IN Writ Petitions Nos. 3806 and 3807 of 1973, M/s. Martin Burn Limited is the main petitioner. By certain assignments the company became the licensee for the generation and distribution of electrical power for Jaunpur and Faizabad. In respect of the Jaunpur electric licence a notice dated April 2, 1973, was served on the petitioner, demanding a security of Rs. 1,50,000. In respect of the Faizabad licence a sum of Rs. 1,80,000 was demanded as security by a notice dated January 1, 1973. By a subsequent notice dated March 6, 1973, the Board demanded additional security deposit of Rs. 1,60,000. By a third notice dated May 18, 1973, the licensee was asked to deposit a sum of Rs. 2,50,000 as additional security.;


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