JAIN, J. - (1.) THIS Special Appeal & other Special Appeals, mentioned in Schedule 'a', have been filed by the Rajasthan State Electricity Board (hereinafter to be called as 'the Board') and its Assistant Engineer (CS. D.) under section 18, Rajasthan High Court Ordinance against the judgments dated August 23, 1986 and December 17, 1986 passed by learned Single Judges in the various writ petitions filed by the power consumers. The learned Single Judges have partly allowed the writ petitions. They have struck down Note II given below Item No. 8 of Part II of the General Conditions of Supply and Scale of Miscellaneous Charges Relating to the Supply of Electricity, 1964 (hereinafter to be called 'the General Conditions') providing that no interest would be payable on the Security deposit. They have also directed that the interest would be payable on the amounts of enhanced security deposits from the date of the deposit at the rate payable by the Scheduled bank on fixed deposits made for a year. They have further directed that the amounts of enhanced security deposits would be calculated on the basis of average consumption of three months of the previous year & the bills for depositing the amounts of the enhanced security deposits would be revised and issued accordingly. The writ petitioners have also filed special appeals, mentioned in Schedule 'b', praying that the interest on the entire amounts of security deposits be allowed and not on the enhanced amounts of security deposits. After the aforesaid judgements of the learned Single Judges, writ petitions, mentioned in Schedule 'c, were filed with the same prayers. As the facts and law involved in all these cases are almost same, they are being disposed of by this common judgment. Common facts may be summarised thus.
(2.) THE writ petitioners applied to the Board for the supply of high tension power for their factories. Agreements in prescribed forms were executed, security amounts in cash on the basis of estimate of consumption of power during one month were deposited and bank guarantees for double the said estimated amounts were furnished. After completing all other necessary formalities, power connections were given. Subsequently, the Board issued notices to the writ petitioners requiring them to deposit the enhanced amounts of cash security as well as bank guarantee on the basis of the maximum power consumption of three months. THE writ petitioners submitted various representations to the authorities of the Board and requested them to calculate enhanced security on the basis of average consumption of three months and to make payment of interest on the amounts of security deposits but with no avail. THEreafter, they filed writ petitions challenging the notices. THE Board filed its replies, seriously opposing the writ petitions. After bearing the learned counsel for the parties, the learned Single Judges partly allowed the writ petitions as said above. It has been contended by the learned counsel for the Board that the amounts of enhanced security have rightly been calculated on the basis of the maximum power consumption of three months of the previous year as in almost all establishments consumption of the power is progressively rising and the relevant portions of Part II of the General Conditions providing that the amount of security would be calculated @ Rs. 40/- per K. V. of connected load or part thereof or three months estimated consumption charges, whichever is higher, do not require that the average consumption of three months is to be taken. They further contended that all the writ petitioners, have executed agreements in the prescribed proforma, there is no term in it for the payment of interest and as such they are not entitled to claim interest as it is not the case of any of the writ petitioners that the agreements is void or voidable. They also contended that the consumers make payment of the amounts of the electricity consumed by them not before 21/2 months of the actual consumption as meter reading is taken after consumption period of 30 days, 10 days are generally required for taking meter reading and issuing bills, 17 days' time is given for the payment of the bills, 7 days' notice is given for the disconnection of supply, if the consumer fails to deposit the bill amount in time and thereafter 10 days are taken in actual disconnection after the expiry of the notice period and no interest is charged by the Board or paid by them for detaining the amounts. They lastly contended that the learned Single Judges did not take into consideration the earlier judgement of this court given in B. R. Oil Mills Ltd. Bharatpur vs. Assistant Engineer (D), R. S. E. B. Bharatpur (1), holding that the condition regarding the non-payment of interest is quite valid. Mr. R. C. Maheshwari Advocate also relied upon Southern Steel Ltd. V. AP. State Electricity Board, (2) in support of his arguments that interest should not be awarded at the rate exceeding 3% per annum, if it is awarded. In reply, it has been contended by the learned counsel for the power consumers (writ petitioners) that the condition regarding the non-payment of interest on the amounts of security deposits Part II of the General Conditions and the General contract executed in between the parties not providing payment of interest are most arbitrary and are hit by Article 14 of the Constitution of India. They also contended that after furnishing of the security, many formalities are required to be completed, they take time and, thereafter power connection is released. They further contended that under clause 2 (c) of Part II of the R. S. E. B. Tariffs for Supply of Electricity, 1981 the consumers are required to pay surcharge @ % for 30 days or part thereof on the unpaid amount from the due date until the same is paid in full. They also contended that Section 4, Interest Act, 1978 provides payment of interest on security deposits and Part XVII (2) (v) of the VI Schedule of the Electricity (Supply Act, 1948 (hereinafter to be called 'the 1948 Act') requires the Rating Committee to take into consideration the amounts of interest paid on security deposits while fixing the rates of electricity charges. They further contended that it is not mentioned in Part II of the General Conditions that the consumption of the three months consuming maximum powers would be taken into consideration while calculating the amounts of securities, it simply provides for the three months estimated consumption charges and it means average consumption of the three months of the previous year. They lastly contended that the learned Single Judges have allowed interest on the enhanced amounts only of security deposits despite the fact that the provisions regarding the non-payment of interest on the amount of security have been struck down and they should have allowed interest on the total amounts of security deposits. It is no more in dispute that enhanced security may be demanded by the Board from the power consumers on the basis of the agreements executed by them and also under Condition No. 20 (e) of the General Conditions and proviso (a) of sub-clause (b) of Clause (1) of Part VI of the Schedule of the Indian Electricity Act, 1910 hereinafter to be called '1910 Act. ' Reference of M/s Jagannath Paper Industries (P) Ltd. v. Haryana State Electricity Board (3), B. R. Oil Mills v. Assistant Engineer (D), Rajasthan State Electricity Board, Bharatpur (supra), K. C. Works v. Secretary, KPSEB, Vidhyut Saudha (4) and M/s Haryana Ice Factory v. Delhi Electricity Corporation (5), may be made here. The first question for consideration in these cases is about the basis for the determination of the enhanced amount of security. The relevant portions of Part II of the General Conditions relating to security deposit run as under: - "security Deposits: - (a) Domestic and non-domestic loads- When bills are issued Monthly Bi monthly (i) Upto 15 KW connected load. Rs. 20/- per 0. 5 K. W. Rs. 30/-per 0. 5 K. W. Connected load or part thereof. (ii) About 15 KW connected load Rs. 25/-per 0. 5. KW Rs. 50/-per 0. 5. KW Connected load or part there of or 3 months estimated consumption charges whichever is higher. (b) All others Rs. 40/- per KW of connected load or part thereof or 3 MONTHS ESTIMATED CONSUMPTION CHARGES WHICHEVER IS HIGHER. N. B. (i) An additional security of Rs. 50/- per service will be required from the consumer who does not own the premise in which the connection is desired. (ii) NO DItEREST WILL BE PAID BY THE BOARD ON THE SECURItY DEPOSIt. (iii) Security Deposits from Government servant shall be as per the Govt. notification issued from time to time. In the absence of any such notification, the above rates of Security Deposits shall also be applicable to Govt. servants. But additional security of Rs. 50/- will not be required from a Govt. servant living in a government quarter duly allotted to him. "
(3.) THE above quoted clause (b) applies in all the present cases. It clearly provides that the amount of security would be calculated @ Rs. 40/- per K. V. of connected load or part thereof or THREE MONTHS' ESTIMATED CONSUMPTION CHARGES, whichever is higher. It does not provide for the consumption of three months consuming maximum electricity. If it is interpreted to mean maximum consumption, it may also be interpreted to mean minimum consumption. In the absence of any indication about the particular three months, the correct interpretation of these words would be average consumption of three months. Average is the golden rule. Demand on the basis of maximum consumption of three months would be arbitrary and unreasonable as observed in M/s Jagdamba Paper Industries (p) Ltd. v. Haryana State Electricity Board (Supra) Para 11. THE Board has power to demand additional security as and when consumption of energy goes beyond the security limit. THE learned Single Judges have rightly held that the average consumption of the three months would be taken into consideration while calculating the amounts of security. Thus there is no force in the aforesaid contentions of the learned counsel for the Board on this point. The second question for consideration is whether the above quoted Note II and the term of the agreements executed in between the parties regarding the non-payment of interest on the cash security deposits are reasonable. Last para of the prescribed form of agreement given in the end of Part I of the General Conditions runs as under : - "this agreement shall be read and construed as subject in all respects to the conditions of supply of the Board, as enforced from time to time and to the relevant provisions of the Indian Electricity Act, 1910, the Electricity (Supply) Act, 1948, and the rules and regulations made thereunder or any subsequent amendments or modifications thereof. " ;