INDUCTION FURNACE ASSOCIATION Vs. PUNJAB STATE POWER CORPORATION LTD
LAWS(P&H)-2012-5-127
HIGH COURT OF PUNJAB AND HARYANA
Decided on May 17,2012

INDUCTION FURNACE ASSOCIATION, LUDHIANA,RANJEEV ALLOYS LTD Appellant
VERSUS
PUNJAB STATE POWER CORPORATION LTD Respondents

JUDGEMENT

MAHESH GROVER - (1.) BY this common order I am disposing C.W.P. Nos.16261 and 16262 of 2011.
(2.) THE petitioners pray that the advance deposit/security has been lying with the respondents since 1986 and that with effect from 2003, there was no condition to pay interest on the security but subsequent to 2003, on coming into existence of Rule 27 of the Electricity Rules, 1956, read with clause 14 of the Model Form of Draft Conditions of Supply, grant of interest was made possible in accordance with the provisions of Section 47 of the Electricity Act, 2003. The grievance of the petitioners is limited, even though a number of prayers have been made, that interest on the advance security should be paid to them since 1986 to 2003. Reliance has been placed on M/s.Jagdamba Paper Industries (Pvt.) Ltd. and others v. Haryana State Electricity Board and others (1983) 4 SC.C. 508 and Ferro Alloys Corporation Ltd. V. A.P.State Electricity Board, 1993 Supp.(4) SCC 136.
(3.) THE respondents have stated that they are paying interest after the promulgation of the 2003 Act, but before that since there was no provision in the Act or the Regulations, the respondents could not pay any interest for the said period. It has further been stated that the terms and conditions applicable at that point of time are to govern the situation and since prior to 2003 there is no condition of paying any interest, consequently, the claim of the petitioners is totally baseless.;


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