BOKARO STEEL EMPLOYEES CO-OPERATIVE HOUSE CONSTRUCTION SOCIETY MEMBER ASSOCIATION Vs. STEEL AUTHORITY OF INDIA LTD
LAWS(JHAR)-2003-8-58
HIGH COURT OF JHARKHAND
Decided on August 20,2003

Bokaro Steel Employees Co -operative House Construction Society Member Association Appellant
VERSUS
STEEL AUTHORITY OF INDIA LTD. Respondents

JUDGEMENT

S.J.MUKHOPADHAYA, J. - (1.) IN all these cases, as comon question of law involved and almost similar prayer has been made, they wee heard together and are being disposed of by this common judgment.
(2.) THE petitioner, Bokaro Steel Employees Co -Operative House Construction Society Members Association (for short 'Association ') through Ramta Prasad Singh and another of WP (C) No. 5980 of 2002 has challenged the bill dated 5th September, 2002 as raised by 6th respondent. Executive Director, P&A Steel Authority of India Limited, Bokaro Steel Limited (for short BSL) whereby it had demanded a sum of Rs. 3,05,65,796.16 paise from Bokaro Steel Employees Co -operative House Construction Society Limited, Bokaro (for short 'Co -operative Society ') on account of arrears on revision of electricity charges w.e.f. May, 1S97. Further prayer has been made to set aside the enhancement of electricity charges as raised by BSL @ 239 paise/kwh (unit) w.e.f. May, 1997 and @ 332 paise/KWH (unit) w.e.f. April, 2002. The Association has also prayed to direct the respondents not to give effect to the orders dated 13th May, 1998, 8th January, 1999 and 29th January, 1999 whereby the rate of electricity has been enhanced. Prayer has been made to direct the respondents to charge the electricity rate at par with the rates as being charged on the employees of BSL and to restore concession to the extent supply of 15,000 free units on account of provision of street lights and for restoration of the concessions of energy charges to the retired employees of BSL. The petitioner, Usha Prakash of WP (C) No. 1868 of 2002 has prayed for direction on the respondents to raise energy bills regularly on the basis of rate fixed by Damodar Valley Corporation . (for short DVC) without adding any other charges. The 3rd petition, WP (C) No. 986 of 2003 has been preferred by the Co -operative Society (Bokaro Steel Employees Co -operative House Construction Society Limited) which has also challenged the order No. 1000 dated 5th September, 2002 whereby the Executive Director (P&A) raised demand of Rs. 3,05,65,796.16 paise on account of electricity charges and the order No. 93 dated 25th January, 1999 whereby the rate of electricity charges raised to Rs. 2.39 paise per unit w.e.f. 1st May, 1997 and the order No. 533 dated 2nd May, 2002 whereby electricity charges further raised to Rs. 3.32 paise per unit w.e.f. 1st April, 2002. According to petitioner, the Cooperative Society was registered on 17th April, 1968 under Co - operative Societies Act, 1912 . On 18th September, 1968, the BSL accorded approval for allotment of land to the Co -operative Society. It members were employees of BSL and most of them have now retired. The BSL decided to supply water and power and to give sewerage facilities to the Co -operative Society vide its decision dated 28th February, 1969, on payment. It was agreed to supply electricity at the rate which would cover the cost of power and distribution charges. An agreement was reached between the Co -operative Society and BSL on 4th December, 1969 for supply of electricity on 90 acres of land of Co -operative Society. Under Clause 3 of the agreement, it was agreed upon that the BSL will have control over electrical installation in the area allotted to the Co -operative Society for which the Co -operative Society will be liable to pay cost with interest @ 6% per annum. In the bye -laws framed by the Cooperative Society in January, 1973, the Co -operative Society agreed to provide electricity to its members on payment of actual charges for supply of energy as per bills raised by BSL and 5% interest for delayed payment. A rule was also framed by the Co -operative Society on 30th October, 1985 for supply of electrical energy to its members wherein "prevailing rate" of electrical energy was defined as "the rate of electrical energy charged by BSL from time to time".
(3.) ACCORDING to petitioners, by its decision dated 16th February, 1990, the BSL agreed to give the following benefits : - - "(A) To exclude maximum demand charges, which was 26 paise per unit W.e.f. 1.4.1987. (B) To reduce transmission and handling losses of BSL from 20% to 5.5% right from 1972 -73. And (C) To give concession to Co -operative Society of 15000 units per month for street lighting in place of Rs. 10,000/ - per month." According to counsel for the petitioner -Association of WP (C) No. 5980 of 2002, the benefits aforesaid were given by BSL for the following reasons : - - (i) The maximum demand charges arises due to fluctuating loads of Rolling Mills in Plant. (ii) The distribution system and Low Tension lines are owned and maintained by the Society. (iii) Depreciated value, maintenance and operational cost of equipments and switching plant of BSL for supply of power is at 11 KV to society. (iv) To obviate their reduction in effective concessional units due to future enhancement rate of electricity. Further case of petitioners is that the BSL also extended the aforesaid facilities to retired employees, who are members of the Co -operative Society vide its decision dated 14th December, 1990 and decided to supply electricity at the rate the BSL supply electricity to its serving employees. ;


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