{"id":68004,"date":"2010-03-19T00:00:00","date_gmt":"2010-03-18T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/punjab-state-electy-board-vs-ms-vishwa-calbier-builders-on-19-march-2010"},"modified":"2017-05-04T09:53:57","modified_gmt":"2017-05-04T04:23:57","slug":"punjab-state-electy-board-vs-ms-vishwa-calbier-builders-on-19-march-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/punjab-state-electy-board-vs-ms-vishwa-calbier-builders-on-19-march-2010","title":{"rendered":"Punjab State Electy. Board vs M\/S.Vishwa Calbier Builders &#8230; on 19 March, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Punjab State Electy. Board vs M\/S.Vishwa Calbier Builders &#8230; on 19 March, 2010<\/div>\n<div class=\"doc_author\">Author: G Singhvi<\/div>\n<div class=\"doc_bench\">Bench: G.S. Singhvi, Asok Kumar Ganguly<\/div>\n<pre>                              IN THE SUPREME COURT OF INDIA\n\n                   CIVIL APPELLATE JURISDICTION\n\n                  CIVIL APPEAL NO. 2538 OF 2010\n                (Arising out of S.L.P. (C) No.4610 of 2009)\n\n\nPunjab State Electricity Board                           .......Appellant\n\n\n                                 Versus\n\n\nM\/s. Vishwa Caliber Builders Pvt. Ltd.                   .......Respondent\n\n\n\n\n                            JUDGMENT\n<\/pre>\n<p>G.S. Singhvi, J.\n<\/p>\n<\/p>\n<p>1.    Leave granted.\n<\/p>\n<\/p>\n<p>2.    This is an appeal for setting aside order dated 30.7.2008 passed by the<\/p>\n<p>Division Bench of Punjab &amp; Haryana High Court whereby it dismissed the<\/p>\n<p>writ petition filed by the appellant against the order of Ombudsman,<\/p>\n<p>Electricity, Punjab (hereinafter described as &#8220;the Ombudsman&#8221;) who, in<\/p>\n<p>turn, reversed the decision of the Disputes Settlement Authority (for short,<br \/>\n<span class=\"hidden_text\">                                                                            2<\/span><\/p>\n<p>&#8220;the DSA&#8221;) and directed refund of the amount recovered from the<\/p>\n<p>respondent towards Advance Consumption Deposit (ACD), service<\/p>\n<p>connection charges and load surcharge.\n<\/p>\n<\/p>\n<p>3.       The respondent, who owns a shopping complex at Mata Rani Chowk,<\/p>\n<p>AC Market, Ludhiana submitted application dated 23.5.1995 to the<\/p>\n<p>competent authority of the appellant for sanction of NRS connection with a<\/p>\n<p>load of 2548 KW and deposited ACD amounting to Rs.5,25,600\/-. The<\/p>\n<p>Engineer-in-Chief\/Commercial Sales Director, Punjab State Electricity<\/p>\n<p>Board sanctioned registration of the application of the respondent subject to<\/p>\n<p>the condition that connection would be released only after shifting of 8<\/p>\n<p>MVA load from 66 KV sub station, G.T. Road, Ludhiana to the proposed 66<\/p>\n<p>KV sub station, Feroze Gandhi Market and Transport Nagar, Ludhiana.<\/p>\n<p>However, due to non-availability of the transformer, steps for shifting 8<\/p>\n<p>MVA load from 66 KV sub station, G.T. Road, Ludhiana, could not be<\/p>\n<p>taken.     After some time, the respondent applied for release of connection<\/p>\n<p>with 1500 KW from the existing system. The request of the respondent was<\/p>\n<p>accepted by the Chief Engineer concerned and accordingly a connection was<\/p>\n<p>released in favour of the respondent with effect from 25.3.1996.          On<\/p>\n<p>11.5.1999, new transformer was installed at 66 KV sub station, G.T. Road,<br \/>\n<span class=\"hidden_text\">                                                                           3<\/span><\/p>\n<p>Ludhiana. Thereafter, Memo dated 11.8.1999 was issued to the respondent<\/p>\n<p>to give consent for release of the balance load. The latter submitted consent<\/p>\n<p>letter dated 1.9.1999 with a stipulation that six months&#8217; period may be<\/p>\n<p>allowed for building up the balance load. On being asked by the Senior<\/p>\n<p>Executive Engineer, the respondent submitted an affidavit dated 16.10.2000<\/p>\n<p>for release of the balance load.\n<\/p>\n<\/p>\n<p>4.    Since, the respondent failed to avail the balance load within six<\/p>\n<p>months, the competent authority of the appellant forfeited the ACD on the<\/p>\n<p>premise that the application made by the applicant had lapsed. This was<\/p>\n<p>followed by notice dated 13.12.2001 vide which the respondent was<\/p>\n<p>informed that it can submit fresh A&amp;A form for availing the balance load.<\/p>\n<p>To the same effect, reminder dated 23.5.2002 was also issued to the<\/p>\n<p>respondent.   However, the representative of the respondent declined to<\/p>\n<p>submit fresh A&amp;A form by contending that the same is not applicable to<\/p>\n<p>NRS connection.\n<\/p>\n<\/p>\n<p>5.    The electricity connection installed in the premises of the respondent<\/p>\n<p>was checked on 27.8.2004 by a team of officers of the Board which found<\/p>\n<p>that as against the sanctioned load of 1500 KW, the respondent was using<\/p>\n<p>total load of 1981.637 KW. Upon receipt of the report of the checking team,<br \/>\n<span class=\"hidden_text\">                                                                           4<\/span><\/p>\n<p>demand notice dated 25.1.2005 was issued to the respondent requiring it to<\/p>\n<p>deposit Rs.15,41,492\/- which included Rs. 3,37,400\/- as ACD, Rs.4,81,637\/-<\/p>\n<p>as service connection charges and Rs.7,22,455\/- as load surcharge.<\/p>\n<p>6.    The respondent challenged the aforesaid notice by filing a petition<\/p>\n<p>before the DSA, which was dismissed vide order dated 20.2.2006. The<\/p>\n<p>operative portion of that order reads as under:\n<\/p>\n<\/p>\n<blockquote><p>      &#8220;Keeping in view the petition, reply, rejoinder, evidence<br \/>\n      adduced, written arguments and oral discussion DSA concluded<br \/>\n      that charging of load surcharge for 432 KW load is correct. As<br \/>\n      per SR No.35.1.2, the petitioner did not apply for any extension<br \/>\n      in time after the expiry of six months for building up of his<br \/>\n      load, in such cases where the consumer does not come up with<br \/>\n      the request for extension in time beyond six months for<br \/>\n      building up of balance load\/demand, the load\/demand not<br \/>\n      availed shall be deemed to have elapsed. In this case above<br \/>\n      mentioned regulation is applicable for calculating the penalty.<br \/>\n      Thus, Rs.7,22,455\/- charged, as load surcharge are recoverable.<br \/>\n      As far as ACD of Rs.3,37,400\/- is concerned the Board has<br \/>\n      already received ACD of full load in 1995. So only the<br \/>\n      difference of rate of ACD of 1052.920 KW load is recoverable.<br \/>\n      DSA also decided that Rs.4,81,637\/- charged as SCC are also<br \/>\n      recoverable from the petitioner.\n<\/p><\/blockquote>\n<blockquote><p>      Correct surcharge as per Board&#8217;s instructions be also<br \/>\n      recovered.&#8221;\n<\/p><\/blockquote>\n<p>7.    The respondent carried the matter before the Ombudsman, who ruled<\/p>\n<p>that the load of 1918.637 KW should be accepted as the built up load and the<br \/>\n<span class=\"hidden_text\">                                                                         5<\/span><\/p>\n<p>same should be deemed as regularized with effect from 1.3.2000. The<\/p>\n<p>relevant portions of order dated 5.9.2007 passed by the Ombudsman are<\/p>\n<p>extracted below:\n<\/p>\n<blockquote><p>         &#8220;There is merit in the petitioner&#8217;s presumption having<br \/>\n         complied with procedural formalities of balance load and<br \/>\n         their request for extension to build up total load within six<br \/>\n         months of their consent letter dated 01.09.1999. There offer<br \/>\n         to be charged for minimum monthly charges on full load of<br \/>\n         2548 KW clear their antecedents. Checking report dated<br \/>\n         27.08.2004 confirms that load was built up to 1981 KW if<br \/>\n         not upto 2548 KW. The respondents themselves confirm on<br \/>\n         the basis of consumption data that load in excess of 1500<br \/>\n         KW was running for some years. Despite the petitioners<br \/>\n         consent letter dated 01.09.1999 to pay minimum monthly<br \/>\n         charges on 2548 KW billing continued to be done on the<br \/>\n         load of 1500 KW by the respondents.\n<\/p><\/blockquote>\n<blockquote><p>         Both the parties can not be absolved of the acts of omission<br \/>\n         and commission in complying with deadlines and the rules<br \/>\n         and regulations framed by the Respondents. Under the<br \/>\n         circumstances, I am of the opinion that the load of 1981.637<br \/>\n         KW detected as on 27.08.2004 should be accepted as the<br \/>\n         built up load and deemed to be regularized w.e.f.<br \/>\n         01.03.2000 as per the commitment of the petitioner. It will<br \/>\n         mean that there was no unauthorized or excess load as on<br \/>\n         the checking date of 27.08.2004. The load surcharge of<br \/>\n         Rs.7,22,455\/- service connection charges of Rs.4,81,637\/-<br \/>\n         and ACD of Rs.3,37,400\/- levied on account of excess load<br \/>\n         found during checking are not recoverable from the<br \/>\n         petitioner.\n<\/p><\/blockquote>\n<blockquote><p>         The minimum monthly charges on the regularized load of<br \/>\n         1981.637 KW are to be charged from the date of this<br \/>\n         offered consent i.e.1.3.2000. It will also mean that the<br \/>\n         balance load of 566.363 KW not build up till 27.08.2004<br \/>\n         will lapse. The service connection charges &amp; ACD<br \/>\n<span class=\"hidden_text\">                                                                             6<\/span><\/p>\n<p>            deposited at initial stage shall be dealt with in accordance<br \/>\n            with SR 35.5. &amp; 35.6 of Electricity Supply Regulations.\n<\/p><\/blockquote>\n<blockquote><p>            For any further enhancement of extension of load beyond<br \/>\n            1981.637 KW, the rules and regulations governing the<br \/>\n            extension of load as per Sales Regulations will apply. The<br \/>\n            respondents shall refund any balance amount after<br \/>\n            adjustment of minimum monthly charges with interest as<br \/>\n            per the Board&#8217;s instructions within two months of the<br \/>\n            receipt of this order.&#8221;\n<\/p><\/blockquote>\n<p>8.     The writ petition filed by the appellant was dismissed by the High<\/p>\n<p>Court by observing that having failed to fulfill its obligation to release<\/p>\n<p>connection with a load of 2548 KW, the appellant cannot put the respondent<\/p>\n<p>in a disadvantageous position and make it liable for the load which was not<\/p>\n<p>utilized.\n<\/p>\n<\/p>\n<p>9.     Shri Jagjit Singh Chhabra pointed out that there is no provision in the<\/p>\n<p>Electricity Act, 2003 (for short, `the Act&#8217;) and the regulations framed by the<\/p>\n<p>appellant for regularization of unauthorized use of electricity and argued that<\/p>\n<p>the Ombudsman did not have the jurisdiction to ordain deemed<\/p>\n<p>regularization of extra load with effect from 1.3.2000 and the High Court<\/p>\n<p>committed serious error by refusing to interfere with patently illegal order of<\/p>\n<p>the Ombudsman.        Learned counsel further argued that the appellant&#8217;s<\/p>\n<p>inability to arrange for transfer of 8 MVA load from 66 KV sub station, G.T.<br \/>\n<span class=\"hidden_text\">                                                                           7<\/span><\/p>\n<p>Road, Ludhiana to the proposed 66 KV sub station at Feroze Gandhi Market<\/p>\n<p>and Transport Nagar, Ludhiana could not have been made basis by the<\/p>\n<p>Ombudsman for declaring that use of electricity by the respondent over and<\/p>\n<p>above the sanctioned load of 1500 KW did not amount to unauthorized use<\/p>\n<p>of electricity. Shri Chhabra then submitted that in terms of Clause 37.1.2 of<\/p>\n<p>the Sales Regulations framed by the appellant, the respondent could have<\/p>\n<p>availed the balance load within six months of the submission of A&amp;A form,<\/p>\n<p>which it failed to do and both the Ombudsman and the High Court<\/p>\n<p>committed serious error by ignoring that without getting sanction for the<\/p>\n<p>balance load by complying with the requirement of the relevant regulations,<\/p>\n<p>the respondent was not entitled to take supply with a load of 1981.637 KW<\/p>\n<p>and that it was a clear case of theft of electrical energy to the extent of<\/p>\n<p>481.637 KW.\n<\/p>\n<\/p>\n<p>10.   We have considered the arguments of the learned counsel and agree<\/p>\n<p>with him that in the absence of any provision in the Act or the regulations<\/p>\n<p>framed by the appellant, the Ombudsman committed jurisdictional error by<\/p>\n<p>directing regularization of unauthorized use of electricity by the respondent<\/p>\n<p>and refund of the alleged excess amount charged by the appellant. The fact<\/p>\n<p>that the appellant could not release connection with a load of 2548 KW on<br \/>\n<span class=\"hidden_text\">                                                                              8<\/span><\/p>\n<p>account of non-availability of transformer necessary for transfer of 8 MVA<\/p>\n<p>load from 66 KV sub station, G.T. Road, Ludhiana had no bearing on the<\/p>\n<p>issue of consumption of electricity by the respondent beyond the sanctioned<\/p>\n<p>load. Undisputedly, in terms of the request made by the respondent, the<\/p>\n<p>Chief Engineer had sanctioned connection on the existing system with a load<\/p>\n<p>of 1500 KW, but the respondent used excess load to the tune of 481.637 KW<\/p>\n<p>and this amounted to unauthorized use of electrical energy. It is also not in<\/p>\n<p>dispute that after installation of new transformer, the respondent could not<\/p>\n<p>avail the balance load within the stipulated time of six months and when the<\/p>\n<p>concerned authority issued notice dated 13.12.2001 and reminder dated<\/p>\n<p>23.5.2002, its representative refused to submit fresh A&amp;A form necessary<\/p>\n<p>for release of the balance load. This being the position, the fault, if any, for<\/p>\n<p>non-release of the balance load lay at the doors of the respondent and the<\/p>\n<p>Ombudsman committed serious error by directing the appellant to refund the<\/p>\n<p>alleged excess amount collected from the respondent on account of use of<\/p>\n<p>electricity over and above the sanctioned load.\n<\/p>\n<\/p>\n<p>11.   In the result, the appeal is allowed. The impugned order of the High<\/p>\n<p>Court as also order dated 5.9.2007 passed by the Ombudsman are set aside<\/p>\n<p>and the one passed by the DSA is restored. The respondent is allowed three<br \/>\n<span class=\"hidden_text\">                                                                                  9<\/span><\/p>\n<p>months time to deposit the amount payable in terms of demand dated<\/p>\n<p>25.1.2005. The appellant and, if necessary, its successor shall be entitled to<\/p>\n<p>charge interest at the prevailing banking rate on the amount which was not<\/p>\n<p>paid by the respondent or which may have been refunded by the appellant in<\/p>\n<p>terms of the directions given by the Ombudsman and\/or order passed by the<\/p>\n<p>High Court.\n<\/p>\n<\/p>\n<p>                                                   &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..J.\n<\/p>\n<p>                                                   [G.S. Singhvi]<\/p>\n<p>                                                   &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;J.\n<\/p>\n<p>                                                   [Asok Kumar Ganguly]<\/p>\n<p>New Delhi<br \/>\nMarch 19, 2010.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Punjab State Electy. Board vs M\/S.Vishwa Calbier Builders &#8230; on 19 March, 2010 Author: G Singhvi Bench: G.S. Singhvi, Asok Kumar Ganguly IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 2538 OF 2010 (Arising out of S.L.P. (C) No.4610 of 2009) Punjab State Electricity Board &#8230;&#8230;.Appellant Versus [&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":[30],"tags":[],"class_list":["post-68004","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Punjab State Electy. 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