High Court Kerala High Court

P.Sunderdas vs Kerala State Electricity Board on 3 March, 2009

Kerala High Court
P.Sunderdas vs Kerala State Electricity Board on 3 March, 2009
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WA.No. 476 of 2009()


1. P.SUNDERDAS, AGED 62 YRS,S/O.P.KRISHNAN,
                      ...  Petitioner

                        Vs



1. KERALA STATE ELECTRICITY BOARD,
                       ...       Respondent

2. THE ASSISTANT ENGINEER,ELECTRICAL

                For Petitioner  :SRI.M.RAMESH CHANDER

                For Respondent  : No Appearance

The Hon'ble the Acting Chief Justice MR.J.B.KOSHY

 Dated :03/03/2009

 O R D E R
                 J.B. KOSHY, Ag.C.J. &
                          V.GIRI, J.
             -----------------------------------------
                   W.A.No.476 of 2009
             -----------------------------------------
           Dated this the 3rd day of March, 2009.

                        JUDGMENT

GIRI, J.

The petitioner, the Managing Director of a Private

Limited Company, filed the writ petition challenging Ext.P3,

insofar as it contained a demand for surcharge. He also

sought for a declaration that the Electricity Board which had

issued Ext.P3 is not entitled to recover the said amount in

view of Section 56(2) of the Electricity Act {for short “the

Act”}. There was an alternative prayer for permission to pay

the amount as shown in Ext.P2 in 50 instalments excluding

surcharge. Learned single Judge repelled the contention and

dismissed the writ petition. Hence this writ appeal.

2. The appellant/petitioner is Managing Director of

Cannanore Roller Flour Mills Private Limited, Kannur. It has

an LT IV connection. The multiplication factor adopted by

W.A.No.476 of 2009

:: 2 ::

the Board in relation to the consumer is 40. But for some

reason, during the period from September, 2005 to October,

2008, 20 was adopted as the multiplication factor instead of

40. It naturally resulted in short levy of charges actually due

from the consumer. On realising the mistake, Ext.P2

additional invoice was issued. The petitioner did not have any

dispute as regards the actual charges payable under Ext.P2.

But, the petitioner prayed for facility to pay the said amount

in instalments. Though the petitioner requested for 50

instalments, the Board granted only 24 instalments as

evidenced by Ext.P3. But, since the instalment facility was

granted, the Board also levied surcharge on such charges,

commencing from the second instalment. The writ petition

was filed essentially challenging the levy of surcharge on the

instalments so levied under Ext.P2. Learned single Judge

repelled the contention and hence this appeal.

3. The only point that has been urged in this appeal

is that the additional invoice came to be issued, not on

W.A.No.476 of 2009

:: 3 ::

account of the fault of the consumer, but on account of the

fault committed by the Board. Therefore, surcharge ought

not to have been levied thereon. It is true that adoption of

20 as a multiplication factor instead of 40, was not on account

of the mistake that can be attributed to the consumer and

therefore, if surcharge has been levied for the period up to

the detection of the mistake, then as rightly noted by the

learned single Judge, the contention raised by the consumer

in that regard would have merited acceptance, but what

happened in the instant case is that on realising the mistake,

an additional invoice is issued. The said additional invoice, as

evidenced by Ext.P2 was comprised only of the short

collection of current charges along with the leviable duty

thereon. Had the petitioner, on realising the mistake,

remitted the amount due under Ext.P2, then he would not

have faced the demand for surcharge which is actually

interest on belated payment. But such surcharge is imposed

under Ext.P3 only because the appellant requested for

W.A.No.476 of 2009

:: 4 ::

instalments. Therefore, though the amount became payable,

at least, on the service of demand under Ext.P2, the

appellant was granted the facility to pay the same in 24

instalments. Such a facility obviously could be availed, only if

the consumer was ready to pay interest on such belated

payments. Interest is levied only for the period subsequent to

the service of the demand notice and not for the period prior

thereto. If that be so, the imposition of surcharge under

Ext.P3, which is only another name for interest on belated

payments is perfectly justified.

4. The other contention raised before the learned

single Judge under Section 56(2) of the Act really does not

arise for consideration in the facts and circumstances of the

case. The contention regarding the bar of limitation arising

under Section 56(2) of the Act was raised only in relation to

the imposition of surcharge. The surcharge came to be

imposed only on acceptance of the appellant’s demand for

facility to pay the amount due under Ext.P2 in instalments.

W.A.No.476 of 2009

:: 5 ::

The appellant had not disputed his liability to pay the

amounts due under Ext.P2.

We are in complete agreement with the findings of

the learned single Judge. We see no merit in this appeal and

accordingly, the same is dismissed. The appellant is granted

time upto 15.03.2009 to pay the 3rd instalment. But it is

made clear that no extension as such is contemplated in

relation to the other instalments.

Sd/-

(J.B. KOSHY)
ACTING CHIEF JUSTICE

Sd/-

(V.GIRI)
JUDGE
sk/

//true copy//

P.S. to Judge