{"id":193051,"date":"2009-09-25T00:00:00","date_gmt":"2009-09-24T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-rana-polycot-limited-vs-punjab-state-electricity-board-on-25-september-2009"},"modified":"2017-05-16T17:54:38","modified_gmt":"2017-05-16T12:24:38","slug":"ms-rana-polycot-limited-vs-punjab-state-electricity-board-on-25-september-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-rana-polycot-limited-vs-punjab-state-electricity-board-on-25-september-2009","title":{"rendered":"M\/S Rana Polycot Limited vs Punjab State Electricity Board … on 25 September, 2009"},"content":{"rendered":"
Punjab-Haryana High Court<\/div>\n
M\/S Rana Polycot Limited vs Punjab State Electricity Board … on 25 September, 2009<\/div>\n
             IN THE HIGH COURT OF PUNJAB AND HARYANA AT\n\n                                 CHANDIGARH\n\n\n                                          Civil Writ Petition No.14888 of 2009\n                                                 Date of Decision: 25.09.2009\n\n\n\nM\/s Rana Polycot Limited\n                                                                    Petitioner\n                                        Versus\n\nPunjab State Electricity Board and another\n\n                                                                  Respondents\n\n\n\nCORAM:- HON'BLE MR. JUSTICE JASBIR SINGH\n\nPresent:     Mr.Ashok Aggarwal, Senior Advocate with\n             Mr.Rahul Sharma, Advocate for the petitioner\n             Mr.H.S.Sidhu, Advocate\n\n                           .....\n\nJasbir Singh, J.\n<\/pre>\n
             Vide electricity supply bill dated 24.4.2008, the petitioner was<\/p>\n
directed to pay an amount of Rs.1,13,10,261\/- towards voltage surcharge, to<\/p>\n
be charged @ 10% over and above the electric consumption bill of a<\/p>\n
consumer. Surcharge amount was claimed w.e.f. 19.4.2005 till 31.3.2007.<\/p>\n
Vide letter dated 21.5.2008 (P7), the petitioner was directed to deposit the<\/p>\n
above amount in five equal installments, failing which, it was intimated that<\/p>\n
action shall be initiated as per law.\n<\/p>\n
             It is necessary to mention here that the above said amount was<\/p>\n
claimed in terms of commercial circular, issued by the Punjab State<\/p>\n
Electricity Board (in short, PSEB) on 28.11.2007 (P6).<\/p>\n
             The petitioner laid challenge to the above said demand before<\/p>\n
the Zonal Level Dispute Settlement Committee (in short, ZDSC), South
\n Civil Writ Petition No.14888 of 2009                                     2<\/span><\/p>\n
Zone at Mohali. Before ZDSC, it was grievance of the petitioner that<\/p>\n
surcharge @ 10% upto demand recorded at 2500 KVA was abolished and it<\/p>\n
was to be charged on the demand recorded over and above the same. ZDSC<\/p>\n
opined that the amount was being claimed in terms of orders passed by the<\/p>\n
Punjab State Electricity Regulatory Commission (PSERC), which was<\/p>\n
notified vide circular dated 14.7.2006. Application filed by the petitioner<\/p>\n
was dismissed on 30.4.2009 (P8). The petitioner went in appeal, which was<\/p>\n
dismissed by the Punjab State Electricity Board Forum for Redressal of<\/p>\n
Grievances of Consumers (in short, the Forum), on 18.7.2009 (P10). Instead<\/p>\n
of making representation to the Ombudsman, constituted by the PSEB under<\/p>\n
the provisions of Section 42(6) of the Electricity Act, 2003 (in short, the<\/p>\n
Act), the petitioner has filed this writ petition. Besides laying challenge to<\/p>\n
the electricity bill and the orders, mentioned above, the petitioner has laid<\/p>\n
challenge to the commercial circular No.66\/2007 dated 28.11.2007 (P6) in<\/p>\n
this writ petition.\n<\/p>\n
              Counsel for the parties heard.\n<\/p>\n
              It is primary grievance of counsel for the petitioner that the<\/p>\n
circular dated 28.11.2007 (P6), being non-statutory in nature, cannot be<\/p>\n
applied retrospectively. It has further been stated that the petitioner has<\/p>\n
enhanced his contract demand, for supply of electricity in terms of the<\/p>\n
commercial circular issued by the PSEB on 24.6.2003 (P1), 11.10.2004 (P2)<\/p>\n
and now vide the impugned circular, the petitioner cannot be put to<\/p>\n
disadvantageous position, claiming surcharge @ 10%, on the electricity<\/p>\n
consumed by the petitioner.\n<\/p>\n
              At the time of arguments, Shri H.S.Sidhu, Advocate was called<\/p>\n
to assist this Court on behalf of the respondent-PSEB. He brought it to the<\/p>\n
notice of this Court that similar controversy has already been decided in
\n Civil Writ Petition No.14888 of 2009                                      3<\/span><\/p>\n
favour of the PSEB and against the consumer by a Learned Single Bench of<\/p>\n
this Court in M\/s Antarctic Industries & others v. Punjab State Electricity<\/p>\n
Board and others (CWP No.8451 of<\/a> 2007), decided on 27.4.2009. Counsel<\/p>\n
for the petitioner made an attempt to show to this Court that the controversy<\/p>\n
involved in that writ petition was somewhat different, however, he has<\/p>\n
failed to do so.\n<\/p>\n
             It is apparent from the records and not disputed before this<\/p>\n
Court that circular dated 28.11.2007 was issued by the PSEB, in terms of<\/p>\n
tariff order, passed by PSERC, (which is a statutory body), for the year<\/p>\n
2004-2005, which was notified vide CC No.30\/06 dated 14.7.2006. That<\/p>\n
circular is not under challenge. In above said circular in clause No.13.3,<\/p>\n
regarding voltage surcharge, it was mentioned as under:-<\/p>\n
             “Large supply consumers with contract demand exceeding<\/p>\n
             2500 KVA and upto 4000 KVA catered at 11 KV shall to pay a<\/p>\n
             surcharge @ 10% on consumption charges including demand<\/p>\n
             charges, if any, or normal minimum as compensation for<\/p>\n
             transformation losses, incremental line losses etc.”<\/p><\/blockquote>\n
             It is an admitted fact that the petitioner is getting high tension<\/p>\n
(HT) supply @ 11000 voltage (11KV) and is a large supply industrial<\/p>\n
consumer.    It is also an admitted fact that when electricity is supplied<\/p>\n
through 11KV system, there is a loss in transmission and it also involves<\/p>\n
incidental charges. To cover that, surcharge @ 10% over and above actual<\/p>\n
consumption, was envisaged by the PSEB.\n<\/p>\n
             Electricity Act, 2003 was notified on 26.5.2003. Section 62 of<\/p>\n
the Act refers to the constitution of a Commission, to determine the tariff for<\/p>\n
supply of electricity etc., by the distribution licencee. Section 64 deals with<\/p>\n
the procedure to be followed by the Commission in determining the tariff
\n Civil Writ Petition No.14888 of 2009                                     4<\/span><\/p>\n
for a particular year. For the State of Punjab, PSERC is the competent<\/p>\n
Commission to decide tariff for supply of electricity to the consumers, by<\/p>\n
the PSEB. In the case of M\/s Antarctic Industries (supra), it was so held by<\/p>\n
this Court, by observing as under:-\n<\/p>\n<\/p>\n
                   “On the same analogy, it has to be held that the<\/p>\n
            regulatory commission constituted under Section 82 of the<\/p>\n
            2003Act alone has the power to determine the tariff under<\/p>\n
            section 86(1)(a) of the Act and the State Government, the<\/p>\n
            licensee or a utility have no authority whatsoever to determine<\/p>\n
            or vary the tariff on their own. The tariff approved by the<\/p>\n
            commission is final. However, the tariff is required to be<\/p>\n
            determined by the State Commission in a transparent manner<\/p>\n
            and by following the procedure laid down under Section 64 of<\/p>\n
            the Act.”<\/p><\/blockquote>\n
             In the above said judgment, it was further held by this Court<\/p>\n
that in pursuance to the tariff orders for the years 2004-2005, 2005-2006,<\/p>\n
2006-2007, PSEB has billed the consumers along with levy of surcharge. It<\/p>\n
has also come on record that some consumers, similarly situated like the<\/p>\n
petitioners, filed a review application to lay challenge to the tariff order<\/p>\n
passed, however, their application was dismissed.        Vide the judgment,<\/p>\n
mentioned above, it was held by this Court that ‘there can be no agreement<\/p>\n
or understanding between the licensee and its consumers to levy or waive<\/p>\n
off the tariff de-hors the conditions and schedule to tariff determined by the<\/p>\n
Regulatory Commission.’ Vide the impugned orders, it has specifically<\/p>\n
been held that the surcharge is being claimed in terms of the tariff orders<\/p>\n
passed by the PSERC from time to time.           Vide the judgment in M\/s
\n Civil Writ Petition No.14888 of 2009                                   5<\/span><\/p>\n
Antarctic Industries (supra), it was also held that because the amount is<\/p>\n
being claimed under order passed by a statutory authority, as such, the<\/p>\n
concession given earlier, can be withdrawn. Same is the situation in this<\/p>\n
case. It is also apparent from the records that vide judgment, mentioned<\/p>\n
above, many writ petitions were disposed of.       In some of those writ<\/p>\n
petitions, challenge was also laid to the circular dated 28.11.2007 (P6). To<\/p>\n
negative challenge to the circular mentioned above, it was observed as<\/p>\n
under:-\n<\/p>\n<\/p>\n
                  “At this stage, it may also be noticed that some of the<\/p>\n
            writ petitioners are the arc furnace industries who have<\/p>\n
            challenged   the commercial      circular   No.66\/2007    dated<\/p>\n
            28.11.2007 whereby, according to them, the previous circular<\/p>\n
            No.52\/2004 dated 11.10.2004 has been retrospectively<\/p>\n
            withdrawn from the date of its issue. Suffice it to mention here<\/p>\n
            that the contention has no factual or legal basis. The Tariff<\/p>\n
            Order for the year 2004-05 came to be issued on 30.11.2004.<\/p>\n
            The Circular No.55\/2004 was issued a few days prior thereto,<\/p>\n
            i.e., on 11.10.2004 whereby on the demand of the Industries<\/p>\n
            Association that the 10% additional billing was causing<\/p>\n
            hardship to them, it was clarified that the consumption (KWH)<\/p>\n
            recorded at 11 KV corresponding to the demand recorded over<\/p>\n
            and above 25,000 KVA shall be increased by 10% in the total<\/p>\n
            average consumption. Since this exemption was not reflected<\/p>\n
            by the Board in the ARR or in its proposal for the General<\/p>\n
            Conditions of Tariff, the same was inadmissible as soon as the<\/p>\n
            Tariff Order for the year 2004-05 came into force. The<\/p>\n
            subsequent circular dated 28.11.2007 merely reiterates the
\n Civil Writ Petition No.14888 of 2009                                   6<\/span><\/p>\n
             levy of 10% surcharge on the consumption charges leviable<\/p>\n
             with effect from 1.4.2004, as approved by the State Regulatory<\/p>\n
             Commission in its Tariff Orders for the year 2004 to 2007 for<\/p>\n
             the reason that the previous administrative circular dated<\/p>\n
             11.10.2004 of the Board had become defunct and inoperative<\/p>\n
             after the Tariff Order for the year 2004-05 came to be issued<\/p>\n
             on 30.11.2004. The subsequent circular has only rectified the<\/p>\n
             error and has, at the best, withdrawn an erroneously drawn<\/p>\n
             concession which was not admissible to the petitioners after<\/p>\n
             30.11.2004.”<\/p><\/blockquote>\n
             In view of aforesaid authoritative pronouncement, this Court is<\/p>\n
of the opinion that this writ petition has no substance and no case is made<\/p>\n
out for interference. The same is accordingly dismissed.<\/p>\n
25.09.2009                                 (Jasbir Singh)\ngk                                             Judge\n <\/pre>\n","protected":false},"excerpt":{"rendered":"
Punjab-Haryana High Court M\/S Rana Polycot Limited vs Punjab State Electricity Board … on 25 September, 2009 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Civil Writ Petition No.14888 of 2009 Date of Decision: 25.09.2009 M\/s Rana Polycot Limited Petitioner Versus Punjab State Electricity Board and another Respondents CORAM:- HON’BLE MR. JUSTICE JASBIR […]<\/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":[8,28],"tags":[],"class_list":["post-193051","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"\nM\/S Rana Polycot Limited vs Punjab State Electricity Board ... on 25 September, 2009 - Free Judgements of Supreme Court & 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-rana-polycot-limited-vs-punjab-state-electricity-board-on-25-september-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"M\/S Rana Polycot Limited vs Punjab State Electricity Board ... on 25 September, 2009 - 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