High Court Rajasthan High Court - Jodhpur

Malborough Polychem (P) Ltd vs Raj. State Electocity Board on 24 February, 2009

Rajasthan High Court – Jodhpur
Malborough Polychem (P) Ltd vs Raj. State Electocity Board on 24 February, 2009
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5            S.B. CIVIL WRIT PETITION NO.4877/1994

                 Malborough Polychem (P) Ltd.
                              Vs.
              Jodhpur Vidyut Vitaran Nigam Limited


    Date of Order ::   24th February 2009.

          HON'BLE MR. JUSTICE DINESH MAHESHWARI

    Mr.J.L.Purohit,for the petitioner
    Mr.Rajesh Parihar for
    Mr.Manish Shishodia, for the respondent
                                  ....

    BY THE COURT

Having heard learned counsel for the petitioner and

having perused the material placed on record, this Court is

unable to find any reason to issue any writ or direction in this

case in favour of the petitioner and against the respondent.

The petitioner, having obtained electricity connection for

the purpose of establishing an industry for manufacture of

hydrated lime at Ransigaon, Tehsil Bilara, District Jodhpur,

has filed this writ petition while questioning the denial by the

respondents adjustment of the amount paid towards the cost

of service line; and has prayed that the respondents may be

directed to adjust such an amount of Rs.78,570/- against the

monthly bills.

The petitioner submits that since the year 1971, the

respondent (the then Rajasthan State Electricity Board; now

substituted by the Jodhpur Vidyut Vitaran Nigam Limited) had
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issued Circulars whereby and whereunder the amount of the

cost of the service line to be deposited by the prospective

consumer like itself was to be adjusted against the monthly

energy bills. The petitioner further submits that acting upon

such Circulars of the Board dated 30.01.1970 and 11.05.1971,

it had deposited the service line cost amounting to Rs.

78,570/- along with the security deposit of Rs.9,120/- under

the receipt dated 26.07.1989. It is pointed out that the

petitioner received the transformer on 10.03.1990; and the

Board issued the job order for release of the electricity

connection for the petitioner on 16.06.1990.

The petitioner has stated the grievance in the manner

that after release of the electricity connection, the amount of

service line cost was expected to be adjusted against the

monthly energy bills but the Board did not do so. The

petitioner, thus, approached the Assistant Engineer (REC),

Rajasthan State Electricity Board, Borunda for according such

adjustments; then made such a request to the Senior

Accounts Officer of the Board under the communication dated

09.02.1992 (Annex.3); then approached the Secretary of the

Board under the letter dated 04.08.1992 (Annex.4); and also

made representations to the concerned Chief Engineer and

the Superintending Engineer. However, the Chief Engineer

concerned, under his communication dated 29.06.1993
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(Annex.7) informed that as per the Board’s existing orders,

adjustment of the cost of service line was not permissible in

the petitioner’s case.

The petitioner has further averred that upon making

personal contact, the Chief Engineer informed of the Board’s

order dated 31.05.1990 (Annex.9) providing that the refund (of

service line cost) would be made available only to those

consumers whose connections had been released by

31.03.1990 and not beyond. The petitioner has pointed out

that various further representations were made and ultimately,

by the communication dated 11.05.1994 (Annex.15) it was

informed that such representations and request for

sympathetic consideration had been turned down.

Assailing the said order dated 31.05.1990 (Annex.9), the

learned counsel for the petitioner has referred to the Circulars

dated 30.01.1970 (Annex.16) and dated 26.07.1989

(Annex.17) and submitted that under the said Circulars, it was

specifically given out by the Board that wherever a scheme

was found remunerative, instead of charging the cost of

service line in accordance with Schedule-VI of the Indian

Electricity Act, 1910, the Large Industrial Consumers and the

Medium Industrial Consumers would be required to pay the

amount of the cost of service line only as an advance to the

Board that was to be adjusted against the monthly energy bills.
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Learned counsel submitted that the petitioner made the

deposit towards the cost of service line while relying on such

Circulars issued by the Board and, therefore, according to the

learned counsel, under the very basic principles of promissory

estoppel, the Board could not have denied adjustment of the

amount so paid in the monthly energy bills. Learned counsel

submitted that the order dated 31.05.1990 as issued by the

Board seeking to withdraw such concessions from a back date

i.e., 01.04.1990, remains illegal and arbitrary being squarely

against the letter and spirit of the orders earlier issued by the

Board. Learned counsel submitted that in any case, the

concessions could not have been withdrawn with retrospective

effect and the impugned order dated 31.05.1990 cannot be

operated against the interests of the petitioner. Learned

counsel has referred to and relied upon the decisions of this

Court in the cases of M/s Baldwa Synthetics Pvt. Ltd.,

Bhilwara Vs. The Union of India & Ors.: 1994(3) WLC 276;

and Union of India Vs. M/s J.K. Industries Ltd.: 1989(2) RLR

662. The submissions do not make out a case for interference

in the writ jurisdiction of this Court, particularly in view of the

contents of the Circular dated 26.07.1989.

Though under the Circular dated 30.01.1970 the Board

proceeded to state its decision that in case the scheme was

found remunerative, instead of charging the cost of service line
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in accordance with Schedule-VI of the Indian Electricity Act,

1910, the consumer would be required to pay the amount as

an advance to the Board, which was to be adjusted against the

monthly energy bills; however, such concession as given out

by the Board in the Circular dated 30.01.1970 got

circumscribed and remained available only upto 31.03.1990 as

per the Circular dated 26.07.1989 (Annex.17), relevant part

whereof may be reproduced for ready reference as under:-

“As per the Board’s order No.RSEB/S.2/F.5
(162)/Pt.III/ D.191 dt. 30.1.70 & No.
RSEB/S.2/Tach./F.5(162)/Pt.II/D.1311 dt.11.5.71
where the scheme is found remunerative, instead
of charging the cost of service line in accordance
with Schedule-VI of the Indian Electricity Act,1910,
the Large Industrial Consumers & the Medium
Industrial Consumers respectively are required to
pay the amount of the cost of service line as an
advance to the Board which is adjusted against
monthly energy bills.

In view of the directive of the State Govt.
issued vide No.F.1(44)/Energy/81 dtd. 4.6.85, it
has been desired to extend the aforestated
concessions in the cost of service line upto
31.3.1990.Thus it is enjoined upon all concerned
that aforestated concessions being afforded under
orders dtd.30.1.70 and 11.5.71 shall therefore
stand withdrawn after 31.3.90.

In terms of the aforesaid directive of the
Government now onwards, instead of adjusting
100% amount of the monthly energy bills out of
the amount deposited towards the cost of service
line, energy bill only to the extent of 50% amount
is to be adjusted from the said advance deposit.”

The petitioner admittedly made the deposit for obtaining

electricity connection only on 26.07.1989 and on the given

date, the Circular (Annex.17) had been issued; and that was
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based on the directive of the State Government as issued on

04.06.1985. By the said Circular dated 26.07.1989, it was

made absolutely clear by the Board that the aforesaid

concession was not be continued in perpetuity; was to be

available only up to 31.03.1990; and was to stand withdrawn

after 31.03.1990.

The order dated 30.05.1990 (Annex.9) is nothing but

reiteration of the requirements of the above referred Circular

dated 26.07.1989 (Annex.17). The said order dated

30.05.1990 reads as under:-

“As per the Board’s Order No.RSEB/S-2/F.5
(162)/Pt.III/ D.191 dated 30-1-70 and
No.RSEB/S-2/Tech./F.5(162)/Pt.II/D.1311 dated
11-5-71 where the scheme is found remunerative,
instead of charging the cost of service line in
accordance with Schedule VI of the Indian
Electricity Act,1910, the Large Industrial
consumers & the Medium Industrial consumers
respectively,were required to pay the amount of
the cost of service line as an advance to the Board
which was to be adjusted against monthly energy
bills.

The matter was considered earlier and vide
Order No.RSEB/DCO/C-I/F.4(95) (A)/D.4809
dated 26-7-89, it was made clear that the
aforestated concessions as were being afforded
under Orders dated 30-1-70 and 11-5-71 would
stand withdrawn after 31-3-90 in terms of State
Govt. directive No.F.1(44)/ Energy/81dated 4-6-
1985.

Reports have been received that the
aforesaid Order is not being enforced by the field
officers. It is again reiterated that no refund of the
cost of service line deposited by the Medium and
Large Industrial consumers would be made who
are released connection on or after 1-4-90
irrespective of the fact that if the cost of service
line is deposited by them upto 31-3-90. To further
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eloborate, the refund would be made only to
those consumers whose connections have been
released by 31-3-1990.”

It is apparent that under the said order dated

30.05.1990, the Board has not done anything except

reiterating the requirements of the Circular dated 26.07.1989

whereby it had already been provided that the concession

would stand withdrawn after 31.03.1990. The submission as if

the Board has done anything illegal or arbitrary in issuing the

order dated 30.05.1990, therefore, falls to the ground.

In view of the aforesaid and the indisputable fact

situation that the petitioner made the deposit only on

26.07.1989 and the electricity connection was released to the

petitioner only on 16.07.1990, neither the principles of

promissory estoppel operate against the respondents nor the

petitioner could be held entitled to get adjustment of the

amount paid towards cost of service line.

In the given fact situation, the decisions as relied upon

by the learned counsel for the petitioner dealing with the

fundamental principles of promissory estoppel rule out their

applicability to the present case. The respondents cannot be

said to have committed any illegality in declining the request of

the petitioner to adjust the cost of service line.

In view of the aforesaid, this writ petition fails and is,

therefore, dismissed with costs quantified at Rs.2,200/-
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(DINESH MAHESHWARI), J.

s.soni