Patna High Court - Orders
Maa Bhagwati Spongiron Pvt. Ltd. vs The State Of Bihar on 25 February, 2020
Author: Ashutosh Kumar
Bench: Ashutosh Kumar
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.16643 of 2019
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Maa Bhagwati Spongiron Pvt. Ltd.
... ... Petitioner/s
Versus
The State of Bihar
... ... Respondent/s
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with
Civil Writ Jurisdiction Case No. 1640 of 2017
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Maa Bhagwati Spongiron Pvt. Ltd.
... ... Petitioner/s
Versus
North Bihar Power Distribution Company Ltd. and Ors
... ... Respondent/s
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Appearance :
(In Civil Writ Jurisdiction Case No. 16643 of 2019)
For the Petitioner/s : Mr. Y.V. Giri, Sr. Advocate
Mr. Ashish Giri, Advocate
Mr. Rajat Kumar Tiwary, Advocate
Ms. Deepika Sharma, Advocate
For the NBPDCL : Mr. Vinay Kirti Singh, Sr. Advocate
For the State Mr. Rakesh Ambastha, Advocate
(In Civil Writ Jurisdiction Case No. 1640 of 2017)
For the Petitioner/s : Mr. Ashish Giri, Advocate
For the Respondent/s : Mr. Vinay Kirti Singh, Advocate
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CORAM: HONOURABLE MR. JUSTICE ASHUTOSH KUMAR
ORAL ORDER
7 25-02-2020The petitioner which is a small scale industry engaged in manufacturing of basic iron and steel and basic metal with a plant at Muzaffarpur, claims to be under the Bihar Industrial Incentive Policy, 2011 for grant of various benefits as an incentive to be provided to industrial units in the State of Bihar for the purposes of speeding up the industrial growth and investment in Patna High Court CWJC No.16643 of 2019(7) dt.25-02-2020 2/9 the State of Bihar.
Under the aforesaid incentive for accelerated industrial development in the State, there is a provision for exemption from monthly minimum charges/minimum base energy charges/demand/billing demand. Such exemption is required to be given to a unit with the effective date of new industrial policy for five years. The effective date of new industrial policy has been clarified as the date on which the unit goes for commercial production. In case of the petitioner, the commercial production of sponge iron began on 01.10.2015.
The occasion for the petitioner to come before this Court arose when there was a disconnection of electric line on account of non-payment of DPR on the AMG/MMG.
It is the contention of the petitioner that since the unit was under an incentive plan of the Government of Bihar, no such bills could have been raised and consequently, no DPR also could be insisted upon. Patna High Court CWJC No.16643 of 2019(7) dt.25-02-2020 3/9 As an interim measure, this Court permitted the petitioner to pay an amount of rupees fifty lakhs in two equal installments and directed for restoration of the electric line in order to prevent any closure of the factory. The first installment appears to have been paid on time but there was some delay in payment of second installment of rupees twenty five lakhs.
The aforesaid contention on behalf of the respondent/electricity company is disputed by the petitioner/company and it is claimed that the second installment was also paid on time.
In any view of the matter, with the order passed by this Court, there was restoration of connection which was subject to the deposit of rupees fifty lakhs and further payment of current bills by the petitioner.
It further appears from the records that again the electric line was disconnected for default in payment of current charges.
The claim of the petitioner/company that since Patna High Court CWJC No.16643 of 2019(7) dt.25-02-2020 4/9 it is under the incentive plan of the Government, the electricity bill has to be exempted, the petitioner approached this Court again through an Interlocutory Application.
On this occasion, this Court directed for deposit of rupees ten lakhs within a period of forty eight hours but subject again to the rights and contentions of the parties to be agitated later for re-connection of the electric line.
The electric line was re-connected but again disconnected on the premise of there being no payment of current monthly charges.
Mr. Vinay Kirti Singh, learned senior advocate for the electricity company has submitted that the petitioner/company has violated the undertaking given to this Court that the current bills shall be paid. He further submits that there is no sanction available today and in fact no sanction is available beyond 2018 of the Government in the Industries Department for Patna High Court CWJC No.16643 of 2019(7) dt.25-02-2020 5/9 subsidizing/giving exemption over electric charges of the petitioner.
The methodology of grant of exemption is that the AMG/MMG/MMC as well as electricity duty is to be paid by the Industries Department and the petitioner/company is not to be saddled with the aforesaid responsibility. This arrangement presupposes that there is an uninterrupted supply of necessary finances towards AMG/MMG/MMC/electric duty to the electricity company.
The electricity company is not the author/progenitor of the Industrial Incentive Policy of the Government as the company also has to run on finances which is garnered only by charging for the distribution of electric energy.
It is for this reason, it has been urged on behalf of the electricity company, that of and on, on finding the current bill not been paid by the petitioner, the line has been disconnected.
Patna High Court CWJC No.16643 of 2019(7) dt.25-02-2020 6/9 Mr. Y.V. Giri, learned senior advocate for the petitioner/company strongly contests the aforesaid position and submits that under the Bihar Industrial Incentive Policy of 2011 and the Act promulgated in that regard, make it obligatory for the Industries Department of the Government of Bihar to continue with such concession to an industrial unit for five years so far as exemption of AMG/MMG/MMC is concerned. With respect to the electric duty, such concession has to be continued for seven years. It has already been noted that the relevant reckonable date is the date of the commercial production of the unit.
Apart from this, it has been submitted by Mr. Giri that a deliberate attempt was made by the electricity company to saddle the surcharge and the DPR on the electric bills on the petitioner for which there was complete exemption so far as petitioner/company was concerned.
The contention of the electricity company that Patna High Court CWJC No.16643 of 2019(7) dt.25-02-2020 7/9 regular monthly bill as directed by this Court was not being paid by the petitioner/company has also been doubted and refuted. It has been urged that after necessary deductions of the exemptions to which the petitioner/company is entitled, whatever amount was due was paid promptly by the petitioner.
In the estimation of this Court, the affidavit filed on behalf of respondent No. 1 is incomplete with respect to the particular fact over which the issue could be decided. If the petitioner is under the incentive plan of 2011 of the Government of Bihar, then necessary sanction ought to have been issued and because of that not having been done, the entire confusion appears to have arisen.
Mr. Shankar Kumar, learned advocate for the State is directed to file a fresh counter affidavit in the light of what has been stated above, by the next date.
This Court would appreciate if the affidavit is sworn by the Industries Secretary.
Patna High Court CWJC No.16643 of 2019(7) dt.25-02-2020 8/9 Mr. Giri at this stage points out that notwithstanding the confusion in the matter with respect to sanction by the State Government after 2018, when the matter was sub judice over the issue, the electricity company ought not to have taken a unilateral decision of disconnecting the electric line. By doing so, the electricity company is in contempt of this Court and this aspect of the matter cannot be lightly brushed aside.
This Court is conscious of the fact that the interim order for restoration of electric line on payment of rupees ten lakhs was passed keeping in mind that the main issue requires to be decided viz whether the petitioner is under the incentive plan of the Government and whether such exemption is admissible to the petitioner and in the event of such exemption being available to the petitioner, whether any DPR or surcharge could have been saddled on him.
The matter was slated to be listed and heard finally on 30th of January, 2020.
Patna High Court CWJC No.16643 of 2019(7) dt.25-02-2020 9/9 Mr. Giri therefore urges that unless the electricity company gets purged of the contempt, they ought not to be permitted to place their point of view.
All these matters shall be taken up for final determination on 3rd of March, 2020.
The learned counsel for the parties would be at liberty to seek hearing in this matter on 3 rd of March, 2020 in priority.
This Court would also require the presence of Director of the Industries, Government of Bihar on the next date. Let him be present with the concerned file at 3:00 P.M. on 3rd of March, 2020.
This Court will consider passing order for re- connecting of electric line on that date.
Re-notify on 3rd of March, 2020.
(Ashutosh Kumar, J) Shageer/-
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