{"id":134930,"date":"2009-08-12T00:00:00","date_gmt":"2009-08-11T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-thanikkudam-bagawati-mills-vs-kerala-state-electricity-board-on-12-august-2009"},"modified":"2014-03-19T14:36:58","modified_gmt":"2014-03-19T09:06:58","slug":"ms-thanikkudam-bagawati-mills-vs-kerala-state-electricity-board-on-12-august-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-thanikkudam-bagawati-mills-vs-kerala-state-electricity-board-on-12-august-2009","title":{"rendered":"M\/S.Thanikkudam Bagawati Mills &#8230; vs Kerala State Electricity Board on 12 August, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">M\/S.Thanikkudam Bagawati Mills &#8230; vs Kerala State Electricity Board on 12 August, 2009<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nWP(C).No. 32337 of 2007(Y)\n\n\n1. M\/S.THANIKKUDAM BAGAWATI MILLS LIMITED,\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. KERALA STATE ELECTRICITY BOARD,\n                       ...       Respondent\n\n2. KERALA STATE ELECTRICITY REGULATORY\n\n3. THE ASSISTANT ENGINEER,\n\n                For Petitioner  :SRI.DEVAN RAMACHANDRAN\n\n                For Respondent  :SRI.P.P.THAJUDEEN, SC, K.S.E.B\n\nThe Hon'ble MR. Justice ANTONY DOMINIC\n\n Dated :12\/08\/2009\n\n O R D E R\n                      ANTONY DOMINIC, J.\n                     ================\n                  W.P.(C) NOs. 32337 OF 2007\n                        &amp; 15835 OF 2008\n              ========================\n\n           Dated this the 12th day of August, 2009\n\n                         J U D G M E N T\n<\/pre>\n<p>      The petitioners in these writ petitions are High Tension<\/p>\n<p>Consumers availing of supply of electrical energy from the 1st<\/p>\n<p>respondent to meet the requirements of their industrial<\/p>\n<p>establishments.\n<\/p>\n<p>      2.   In so far as the petitioner in WP(C) No.32337\/07 is<\/p>\n<p>concerned, he has been a defaulter from the year 2000-01<\/p>\n<p>onwards.     Similarly, in so far as the petitioner in WP(C)<\/p>\n<p>No.15835\/08 is concerned, it is stated that they have committed<\/p>\n<p>default for the period from July 2004 to May 2005. The prayer<\/p>\n<p>made by the petitioner in WP(C) No.32337\/07 is to reduce the<\/p>\n<p>rate of interest claimed from 24% to 12%. In fact pursuant to an<\/p>\n<p>order passed by this Court, the claim raised by the petitioner in<\/p>\n<p>this writ petition was considered and was turned down by Ext.R1<\/p>\n<p>(a) order which is also sought to be quashed.<\/p>\n<p>      3.   In so far as the petitioner in WP(C) No.15835\/08 is<\/p>\n<p>concerned, what is under challenge is Ext.P1, the revenue<\/p>\n<p>recovery proceedings initiated for recovering the amounts<\/p>\n<p>WPC 32337\/07<br \/>\n&amp; 15835\/08<br \/>\n<span class=\"hidden_text\">                                 :2 :<\/span><\/p>\n<p>including the interest at 24% from the petitioner. According to<\/p>\n<p>the petitioner herein, they have already paid the energy charges<\/p>\n<p>along with interest at 12% and the dispute is only regarding the<\/p>\n<p>claim for interest at 24%.\n<\/p>\n<p>      4.    The contention raised by the petitioners are the<\/p>\n<p>following.\n<\/p>\n<p>      5.    According to them, prior to the implementation of the<\/p>\n<p>Kerala State Electricity Supply Code, 2005 w.e.f. 2\/3\/05, parties<\/p>\n<p>were governed by the provisions of the Conditions of Electrical<\/p>\n<p>Energy framed by the Electricity Board under Section 79(j) of the<\/p>\n<p>Electricity (Supply) Act, 1948. It is stated that under Clause 32(e)<\/p>\n<p>of the Conditions of Supply of Electrical Energy, defaulters were<\/p>\n<p>liable to pay interest at 24%. It was while so that the Supply<\/p>\n<p>Code, 2005 was implemented and as per Clause 23 thereof, it was<\/p>\n<p>ordered that in case of belated payments, penal interest at twice<\/p>\n<p>the Bank rate based on actual number of days of delay from the<\/p>\n<p>due date has to be charged by the licencee. The contention raised<\/p>\n<p>is that in the worst scenario, liability to pay interest in terms of<\/p>\n<p>Clause 32(e) of the Conditions of Supply could extend only till the<\/p>\n<p>WPC 32337\/07<br \/>\n&amp; 15835\/08<br \/>\n<span class=\"hidden_text\">                                  :3 :<\/span><\/p>\n<p>introduction of Supply Code viz., till 2\/3\/05 and any demand for<\/p>\n<p>interest for the period subsequent there to, should only be in<\/p>\n<p>terms of the provisions contained in Clause 23 of the Supply<\/p>\n<p>Code, 2005.\n<\/p>\n<p>     6.    This contention of the petitioners is sought to be<\/p>\n<p>contradicted by the counsel for the Electricity Board. According to<\/p>\n<p>the Board, the liability to pay the energy charges was incurred by<\/p>\n<p>the respective petitioners for periods including the period prior to<\/p>\n<p>2.3.05. It is stated that liability for interest is a consequence on<\/p>\n<p>the default to discharge the liability and therefore the rate of<\/p>\n<p>interest that is applicable on the date of default, irrespective of<\/p>\n<p>the introduction of the Supply Code, is the rate as provided under<\/p>\n<p>Clause 32(e) of the Conditions of Supply of Electrical Energy,<\/p>\n<p>which is at 24% per annum. On this basis, it is contended that for<\/p>\n<p>defaults prior to 2\/3\/2005, rate of interest applicable is 24%.<\/p>\n<p>     7.    Having considered the submissions made by the<\/p>\n<p>respective counselon either side, I am inclined to agree with the<\/p>\n<p>counsel for the petitioners.\n<\/p>\n<p>     8.    As already stated the Conditions of Supply of Electrical<\/p>\n<p>WPC 32337\/07<br \/>\n&amp; 15835\/08<br \/>\n<span class=\"hidden_text\">                                 :4 :<\/span><\/p>\n<p>Energy framed under Section 79(j) of the Electrical (Supply) Act,<\/p>\n<p>1948 governed the relationship between the parties until<\/p>\n<p>2\/3\/2005 and therefore the liability for payment of interest<\/p>\n<p>provided under Clause 32(e), also continued to apply to the<\/p>\n<p>parties so long as Conditions of Supply of Electrical Energy was in<\/p>\n<p>force. The Supply Code, 2005 admittedly came into force w.e.f.<\/p>\n<p>2\/3\/2005 and therefore liability for interest since then has to be in<\/p>\n<p>terms of Clause 23 of the Supply Code, 2005. There is nothing in<\/p>\n<p>the Supply Code, 2005 which provides that any liability incurred<\/p>\n<p>prior to the introduction of the Supply Code will remain unaffected<\/p>\n<p>by the Supply Code, in which event, justifiably the Board could<\/p>\n<p>have contended that irrespective of the introduction of the Supply<\/p>\n<p>Code, 2005, interest at 24% as provided under Clause 32(e) of<\/p>\n<p>the Conditions of Supply should be paid by the defaulters as and<\/p>\n<p>when the liability is settled. In the absence of such a saving<\/p>\n<p>provision, in my view for the period subsequent to 2\/3\/2005<\/p>\n<p>irrespective of whether the liability was already accrued at the<\/p>\n<p>time when the new Code was implemented, defaulters can be<\/p>\n<p>levied only at the rate as provided under Clause 23 of the Supply<\/p>\n<p>WPC 32337\/07<br \/>\n&amp; 15835\/08<br \/>\n<span class=\"hidden_text\">                                 :5 :<\/span><\/p>\n<p>Code, 2005. If that be so, necessarily the demands made on the<\/p>\n<p>petitioners will have to be revised applying Clause 23 of the<\/p>\n<p>Supply Code, 2005 or the period subsequent to 2\/3\/2005.<\/p>\n<p>      9.   Accordingly, Ext.R1(a) in WP(C) No.32337\/07 and<\/p>\n<p>Ext.P1 in WP(C) No.15835\/08 will stand quashed. It is directed<\/p>\n<p>that the respondents shall rework the liability of the petitioners<\/p>\n<p>applying interest as per Clause 32(e) of the Conditions of Supply<\/p>\n<p>for the period till 2\/3\/2005 and thereafter, as per Clause 23 of the<\/p>\n<p>Supply Code, 2005. Thereafter it will be open to the respondents<\/p>\n<p>to call upon the petitioners to discharge the liability due from<\/p>\n<p>them.\n<\/p>\n<p>      Writ petitions are disposed of as above.\n<\/p>\n<\/p>\n<p>                                       ANTONY DOMINIC, JUDGE<br \/>\nRp<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court M\/S.Thanikkudam Bagawati Mills &#8230; vs Kerala State Electricity Board on 12 August, 2009 IN THE HIGH COURT OF KERALA AT ERNAKULAM WP(C).No. 32337 of 2007(Y) 1. M\/S.THANIKKUDAM BAGAWATI MILLS LIMITED, &#8230; Petitioner Vs 1. KERALA STATE ELECTRICITY BOARD, &#8230; Respondent 2. KERALA STATE ELECTRICITY REGULATORY 3. THE ASSISTANT ENGINEER, For Petitioner :SRI.DEVAN [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-134930","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S.Thanikkudam Bagawati Mills ... vs Kerala State Electricity Board on 12 August, 2009 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/ms-thanikkudam-bagawati-mills-vs-kerala-state-electricity-board-on-12-august-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"M\/S.Thanikkudam Bagawati Mills ... vs Kerala State Electricity Board on 12 August, 2009 - Free Judgements of Supreme Court &amp; 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