PASCHIMANCHAL VIDYUT VITRAN NIGAM LTD. & ORS. VERSUS M/S ADARSH TEXTILES

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.10707 OF 2014

(ARISING OUT OF SLP (CIVIL) NO.29322 OF 2010)

PASCHIMANCHAL VIDYUT VITRAN NIGAM LTD. & ORS. … APPELLANTS

VERSUS

M/S ADARSH TEXTILES & ANR. …RESPONDENTS

 

The question involved in the appeals is whether policy decision dated 14.6.2006 issued by the Government of Uttar Pradesh regarding supply of the electricity to power loom bunkers on the flat rate could have been applied by the U.P. Electricity Regulatory Commission (hereinafter referred to as “the Commission”) to the industries availing HV-2 category connection. To dispose of the appeals, we notice facts from civil appeal arising out of SLP (Civil) No.9869 of 2008. The backdrop facts indicate that the Commission fixed tariff for the year 2004-2005, where by rebate of Rs.5,000/- per consumer was granted to power loom bunkers availing LMV-2 and LMV-6 connections in accordance with policy of the U.P. Government.LMV-2 is a non domestic light, power and electricity connection, LMV-6 electricity connection is of small and medium power having connected load up to 100 HP for industrial/processing or agro-industrial purposes, power loom, etc. HV-2 connection is provided for utilising large and heavy power for industrial and other purposes having contracted load of above 100 HP. Industries which are having load more than100 HP are covered by tariff HV-2.The State Government had issued order dated 14.6.2006 to Managing Director, U.P. Power Corporation Ltd. (here in after referred to as ‘Corporation’). The Commission opined that it has the effect of altering the rate schedule approved by it. The Commission, in turn, issued order dated 3.7.2006 restraining all electricity supply undertakings in the State of U.P. from implementing the provisions of State Government order dated 14.6.2006.The Commission took up the matter to work out modalities as per the Government order. Chairman of the U.P. Power Corporation Limited filed an affidavit before the Commission providing a new scheme compatible with legal framework along with a directive from the State Government issued under Section108 of the Electricity Act, 2008. The scheme as proposed in the affidavit states that despite the aforesaid order, the normal billing as per applicable tariff shall be made but payment shall be collected as per the directions of the Government at normal billing cycle and that the advance subsidy shall be collected from the Government in one installment or maximum two half yearly installments. Pursuant thereto the Commission on 11.7.2006 passed order in which it had prescribed the rate for LMV-2 and LMV-6 consumers only. However, Commission also opined that the State Government has permitted realization on flat rate depending upon reed space, number of looms, etc. It appeared to be the case of altering the rate schedule of the tariff order fixed by it which is not permissible within the legal framework to be attempted by the State Government. The State Government also did not spell out compliance of the advance subsidy payment as envisaged under Section 65 of the Electricity Act, 2003. While dealing with the matter, the Commission observed that billing of the power loom be done strictly in accordance with prevalent schedule….read more