ASHOK BHUSHAN,J. - (1.) HEARD Sri M.L. Lahoty Advocate assisted by Sri B.C. Roy, learned Counsel for the petitioner, Sri K.R. Sirohi, learned Senior Advocate assisted by Smt. Mridul Tripathi appearing for respondents No. 2,3 and 4 as well as learned Standing Counsel representing the respondent No. 1.
(2.) COUNTER affidavit and rejoinder affidavit have been exchanged between the parties and with the consent of learned Counsel for the parties, the writ petition is being finally decided. Brief facts of the case as emerged from the pleadings of the parties are that the petitioner is a public Limited Company engaged in manufacture and sale of two wheelers, scooters and motor-cycles having its registered office at Panki Industrial area Kanpur. The company obtained power load, from the Kanpur Electric Supply Administration (KESA) which was extended from time to time and in the year 2006, the sanctioned load of the company was 8 MVA from 132 KV line. Due to shift in preference of consumers for 4 strokes motor-cycles over 2 stroke scooters, the production of scooters of LML fell down. The company started restructuring its business and took initiative to manufacture 4 stroke motor-cycles, but due to the market conditions it incurred substantial loss. Apprehending that its work force of 6000 directly would be adversely affected, the company represented to the State Government for declaring LML as 'Relief Undertaking' under Section 3(1) of the UP. Industrial Undertaking (Special Provisions for Prevention of Unemployment) Act, 1966. Notification was issued by the State Government on 24.6.2004 suspending for a period of one year all contracts, agreements, other instruments etc. in force under any law, which was subsequently extended for two successive years up to 23.6.2007. An illegal strike was called on 27.2.2006 disrupting the operations of the company ultimately leading to the declaration of lock out on 7.3.2006. Due to strike and lock out, all the manufacturing activities came to a halt. The petitioner realizing that load of 8 MVA is not at all required moved a formal application dated 31.3.2006 requesting the KESCO for reduction of contracted load from 8 MVA to 1.25 MVA. In the application, it was prayed that load reduction be made effective from 1.4.2006. There being urgency in the matter, the company also wrote to the Principal Secretary, Energy, Government of U.P. informing that load reduction from 8 MVA to 1.25 MVA is extremely necessary. On 19.4.2006 a meeting took place between the KESCO and the petitioner company in which decision for reduction of load was taken with certain conditions.
(3.) ON 19.4.2006, the KESCO conveyed to the U.P. Electricity Regulatory Commission regarding its agreement for reduction of load and sought the formal approval of UPERC. The U.P. Regulatory Commission considered the matter on 26.4.2006 and conveyed its order dated 8.5.2006. The Commission did not raise any objection regarding decision of load reduction. However, it observed that agreement which has been reached between the parties are internal to the parties and the same has to be strictly in accordance with the Electricity Supply Code, 2005. After the aforesaid order of the UPERC, the petitioner on 17.5.2006 wrote to the KESCO to reduce the load w.e.f. 1.4.2006 as per the application dated 31.3.2006. The letter dated 21.6.2006 was also written to the Principal Secretary, Energy that the load reduction had not been given effect to although it was expressly agreed upon.;