Document Fragment View

Matching Fragments

J U D G E M E N T SRINIVASAN, J.

I. Relevant facts, The appellant in the earlier appeal of 1988 is a public limited company engaged in the manufacture of Vanaspathi. It entered into two agreements with Andhra Pradesh State Electricity Board hereinafter referred to as `Board' on 1.9.1970 and 27.8.1973 for supply of High tension power. In January, 1976 the officers of the Board inspected the factory premises and noticed pilferage of energy. The power supply was immediately disconnected and a provisional assessment of the loss was made at Rs. 61,28,535/-. A prosecution was launched under Section 379 I.P.C. read with Section 39 of the Indian Electricity Act, 1910, hereinafter referred to as the Electricity Act in the court of the Chief Metropolitan Magistrate, Hyderabad. The Board also initiated proceedings calling upon the appellant to file its objections to the provisional assessment. The appellant denied the allegations made by the Board. After enquiry, the final assessment was made fixing the lost at Rs. 55,511.81 Ps. The order was challenged by the appellant in appeal but in vain. The appellant filed a suit in the court of Additional Chief Judge, City Civil Court (Temp), Hyderabad for a declaration that it was not liable to pay any amount as penal damages and prayed for a direction for refund of the amount of Rs. 22.50 lakhs collected by the Board during the pendency of the assessment proceedings and for perpetual injunction restraining the defendants therein from disconnecting the power supply.

19. Appendix-III contains the form of H.T. agreement. The relevant clauses read as follows :

APPENDIX - III Form of H.T. Agreement "Agreement executed this day of .......19 by..........for themselves/himself/itself and for their/his/her assigns and successors in favour of the Andhra Pradesh State Electricity Board a statutory corporation constituted under section 5 of the Electricity (Supply) Act, 1948 and its successors and assigns herein after called the Board.
2. SUPPLY OF POWER I/We the above mentioned have requested the Board to Supply Electricity at High Tension for the purpose of ..........and the Andhra Pradesh State Electricity Board agreed to afford such conditions notified by them from time to time under section 49 of the Electricity (Supply) Act, 1943 and those herein after mentioned.
3. LOAD/MAXIMUM DEMAND I/We agree to take from the Andhra Pradesh State Electricity Board Electric Power for a maximum load not exceeding......KVA which shall b e taken to be my/our contracted demand for our exclusive use for the purposes above mentioned, at our Mills/Factory/premises situated at..................My/our contracted load shall be..............Hp not effect any change in the maximum demand or contracted load.

36. In State of U.P. and others Versus Hindustan Aluminium Corpn. and others (1979) 3 S.C.C. 229 the Court considered the expression "regulating" in Section 22 (b) of the Electricity Act and observed that the word "regulate" does not include prohibition. The ruling has no relevance whatever in the present case. In Andhra Pradesh Carbides Ltd. and another versus Andhra Pradesh State Electricity Board, Hyderabad and others AIR 1986 Andhra Pradesh 37 a Single Judge of the Andhra Pradesh High Court held t hat regulations made under the Supply Act shall not be covered by Section 70 thereof and that Section 49 read with Section 70 of the said Act does not empower the provisions of Section 24 of the Electricity Act. The ruling has no bearing in the present case as we have found that Clause 39 of the Terms and Conditions of Supply do not contravene the provisions of either Act.