High Court Kerala High Court

Hi-Tech Electrothermics Pvt.Ltd vs Kerala Stte Electricity Board on 28 May, 2009

Kerala High Court
Hi-Tech Electrothermics Pvt.Ltd vs Kerala Stte Electricity Board on 28 May, 2009
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 13090 of 2009(E)


1. HI-TECH ELECTROTHERMICS PVT.LTD.,
                      ...  Petitioner

                        Vs



1. KERALA STTE ELECTRICITY BOARD,
                       ...       Respondent

2. SPECIAL OFFICER (REVENUE)

3. FULL TIME MEMBERS, KERALA STATE

4. THE TAHSILDAR, (REVENUE RECOVERY)

5. VILLAGE OFFICER, KADUNGALOOR VILLAGE,

                For Petitioner  :SRI.J.JULIAN XAVIER

                For Respondent  :SRI.P.P.THAJUDEEN, SC, K.S.E.B

The Hon'ble MR. Justice ANTONY DOMINIC

 Dated :28/05/2009

 O R D E R
                       ANTONY DOMINIC, J.
                  -------------------------
                    W.P.(C.) No.13090 of 2009
            ---------------------------------
             Dated, this the 28th day of May, 2009

                          J U D G M E N T

The petitioner, a company incorporated under the provisions

of the Companies Act, had established an industrial unit for the

manufacture of Calcium Carbide and Ferro Alloys. It is stated that

they were a High Tension Consumer of the respondent Board. The

unit functioned from 1995 till about December, 2004.

2. According to the petitioner, on account of the non

payment of the dues to the Board, supply was disconnected on

08/12/2004. Although there is a dispute that the power supply was

reconnected pursuant to the orders of this Court, I do not think it

necessary for this Court to pronounce on that issue. The petitioner

submits that they wanted to settle the liability, which led to the

disconnection of power supply. Bereft of all details, it is to be

stated that the amount in default represents the liability that the

petitioner was called upon to pay denying the benefit of Pre 92

concessional tariff. The claim of the petitioner for the benefit of Pre

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92 tariff was declined by this Court in Ext.P2 judgment, where,

however, it was directed that the interest liability of the petitioner

will be only to pay @ 12%. According to the petitioner, that issue is

pending consideration of the Apex Court.

3. It was in the meanwhile, that the petitioner wanted to

settle the liability, apparently for transferring the industrial estate to

another company. While so, the Board had also offered One Time

Settlement Scheme. It is stated that during pendency of the SLP

before the Apex Court, as the petitioner wanted to settle the

liability, the petitioner approached this Court and obtained Ext.P5

judgment enabling the petitioner to discharge the liability in

instalments in the manner as directed therein and subject to the

outcome of the SLP. According to the petitioner, in pursuance to

the directions in the judgment, they made payments and as on

31/12/2008, they made a total payment of Rs.1.21 crores.

4. Thereafter, the petitioner requested the respondents to

inform whether any further amount is still outstanding and the

request was replied by Ext.P8 informing that an amount of

Rs.30,92,246/- was still remaining due. The petitioner, thereafter

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filed Ext.P9 contending that in the light of Ext.P2 judgment directing

reduction of interest, the payment made by the petitioner is in

excess of what was actually due and that, at any rate, the claim in

Ext.P8 was unsustainable. Ext.P8 was called in question before this

Court in WPC No.1057/2009 and the Board was directed to consider

the representation made by the petitioner disputing the liability that

was sought to be fastened on them.

5. During this period, proposal of the petitioner to transfer

the industrial estate was pending consideration of the authorities.

The District Industries Centre, issued Ext.P12, requiring the

petitioner to produce certain documents including a No Due

Certificate issued by the respondent Board to consider the request

of the petitioner for transferring the industry. Meanwhile, the Board

also issued Ext.P13 dated 05/01/2009 reducing the interest. This

was also claimed by the petitioner, when the disputed question of

his liability was considered pursuant to Ext.P11. Finally, the Board

passed Ext.P14 quantifying petitioner’s liability at Rs.33,01,881/- as

on 30/04/2009. It is thereupon that this writ petition is filed.

6. Although, several contentions have been raised by the

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petitioner, the real controversy was boiled down to the claim of the

petitioner to have its liability quantified applying Ext.P2 judgment,

where a Division Bench of this Court has directed that the

petitioner’s liability for interest will stand reduced to 12%. Though

against that part of the directions in Ext.P2 judgment, the Board is

stated to have an SLP before the Apex Court, no order has been

passed by the Apex Court enabling the Board to deny the benefit of

Ext.P2 judgment to the petitioner. If that be so, the benefit of

Ext.P2 judgment cannot be denied for the only reason that an

appeal is pending.

7. Along with Ext.P14, the Board has also attached a

statement indicating the manner in which the liability has been

quantified. This statement shows that for the period up to

31/10/2008, the liability has been quantified up to 01/01/2009,

applying 18% & 15% interest. In the light of Ext.P2, such

quantification could have been made applying only 12% interest

and not 18% or 15% as done in Ext.P14. Consequently, the

quantification in Ext.P14 is erroneous, and the liability of the

petitioner has to be reworked as per Ext.P2 judgment. Once the

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liability is reworked as above, the amount, if any, paid by the

petitioner, will be subject to the result of the SLP pending before the

Apex Court. Thereafter, orders will have to be passed on the

application made by the petitioner for No Due Certificate.

Therefore, the writ petition is disposed of with the following

directions:-

Ext.P14 will stand set aside. The respondents are directed to pass

fresh orders in the matter taking into account Ext.P2 judgment in

WP(C) No.35016/2004 and applying 12% interest for the period up

to 01/01/2009, and thereafter at 6% as ordered in Ext.P14. Once

quantification is done as above, the respondents will be at liberty to

call upon the petitioner to discharge further liability, if any, and on

the petitioner making payment, necessary orders will be passed on

their application for No Due Certificate. Orders as above shall be

passed as expeditiously as possible, at any rate, within six weeks of

production of a copy of this judgment.

The writ petition is disposed of as above.

(ANTONY DOMINIC, JUDGE)
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