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SCA/1975220/2006 3/ 3 ORDER
IN
THE HIGH COURT OF GUJARAT AT AHMEDABAD
SPECIAL
CIVIL APPLICATION No. 19752 of 2006
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JAGRUT
NAGRIK THRO.TRUSTEE & SECRETARY & 4 - Petitioner(s)
Versus
VADODARA
MUNICIPAL CORPORATION - Respondent(s)
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Appearance
:
MR
PR THAKKAR for Petitioner(s) : 1 - 5.
MR PRANAV G DESAI for
Respondent(s) : 1,
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CORAM
:
HONOURABLE
THE ACTING CHIEF JUSTICE MR. M.S.SHAH
and
HONOURABLE
MR.JUSTICE D.H.WAGHELA
Date
: 12/08/2008
ORAL ORDER
(Per
: HONOURABLE THE ACTING CHIEF JUSTICE MR. M.S.SHAH)
In
this petition under Article 226 of the Constitution, the petitioners,
claiming to espouse the cause of consumers of gas in the city of
Baroda, both domestic consumers and commercial consumers, challenges
enhancement of price of natural gas being supplied by the respondent
Vadodara Municipal Corporation. The petitioners have also prayed
for constituting a committee comprising members of trade and industry
and officers of the Vadodara Municipal Corporation for fixation of
price of gas being supplied by the Corporation on the basis of no
loss no profit.
2. The
petition is opposed by the respondent Corporation.
Affidavit-in-reply filed by the Project Officer Gas Department of
the respondent Corporation on 8.9.1987 in SCA No.4342 of 1987 is
produced wherein the Corporation has given the justification for
increasing the price of gas being supplied to the consumers in the
city of Baroda. In this petition, the Corporation has filed
affidavit-in-reply dated 2.4.2007 wherein it is pointed out that the
Corporation has given gas connections to approximately 68,902
domestic consumers and approximately 2412 commercial consumers as
well as 31 connections for AC plants and industries. It is stated
that the Gas Department is providing domestic connections which
constitutes approximately 95% of the gas being supplied by the
Corporation and they are given continuous 24 hours supply without any
hassle at cheaper rate. It is also stated that the Corporation is
required to pay amounts to ONGC from whom the Corporation has been
purchasing gas. ONGC has demanded approximately Rs.77.18 crores
including interest upto 31.12.2004. It is also stated that apart from
the administrative expenses as well as salaries and wages for the
employees of the Gas Department of the Corporation and apart from the
amounts required to be paid towards purchase price to the ONGC, there
is also further demand by the ONGC for increasing the price of gas.
It is also stated that petitioner No.2 Baroda Sweet Merchants
and Namkeen Traders Association and petitioner No.3 Baroda Hotel
Owners’ Association are themselves associations of profit making
units which constitute only 14% of the consumers of the Vadodara
Municipal Corporation. It is submitted that the supply of gas is only
to those consumers who willingly entered into contract with the
Corporation and agreed to abide by the terms and conditions of the
contract. Any consumer, if he so wishes, has option to withdraw from
the arrangement. The Corporation has also given particulars of income
and expenses of the gas project which indicate that the Corporation
has very little surplus from these activities since the Corporation
has also to pay substantial amount to supplier of gas i.e. ONGC which
has also been claiming increase in price. There is nothing on record
to hold that the price fixed by the Corporation is arbitrary and
unreasonable.
3. We
may also note that in Association of Natural Gas Consuming Industries
of Gujarat vs. ONGC, 1983 (2) GLR 1437, a Division Bench of this
Court had held the fixation of gas price of ONGC to be arbitrary and
unreasonable. The matter was carried in appeal before the Hon’ble
Supreme Court and in the judgment reported in AIR 1990 SC 1851, the
Apex Court reversed the judgment of this Court and inter-alia
observed that in the case of less vital, but still basic,
commodities, where there is a favourable area of operation,
commercial profits need not be either anathema or forbidden
fruit even to public sector enterprises. It is also held in the said
judgment that ONGC would be well justified in supplying gas to
voluntary contractors at a price which several parties are willing to
accept and which will enable the ONGC to build up a surplus to meet
its manifold requirements. The surpluses, it should be remembered,
are not to fatten the coffers of a private individual but only to
strengthen the backbone of the public enterprise. The aforesaid
observations would apply with greater force to a public body like the
Vadodara Municipal Corporation which is a local self government,
which has to discharge several statutory duties, such as providing
basic amenities and services to the residents in the city.
4. In
view of the above discussion, the petition is dismissed.
It
will, however, be open to the petitioners to make a representation to
the respondent Corporation regarding increase, if any, of gas
price in future.
(M.S. SHAH, Actg. C.J.)
(D.H. WAGHELA, J.)
zgs/-
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