ANANTH ENGINEERING WORKS Vs. KARNATAKA ELECTRICITY BOARD

JUDGEMENT

(1.) THESE intra-Court writ appeals arise out of the common order passed by the leamed Single Judge dated 19-1-2001, in W. P. No. 24526 of 1996 and connected writ petitions. Common questions of fact and law are involved in all these appeals. As agreed, the appeals are disposed of by this common order.

(2.) FOR the sake of convenience, the facts in W. P. No. 24526 of 1996, leading upto these appeals, are taken. Writ petitioners in W. P. No. 24526 of 1996 (hereinafter called 'consumers') are the owners of special plot No. 2, situate in Industrial Estate, M. S. K. Mill Road, Gulbarga. They have put up structure on the said site consisting of several tenements. On construction of cellar and first floor, an application was made to the Karnataka Electricity Board (hereinafter called 'board') for supply of electricity to the said premises measuring 750 sq. metres, applying for the load of 6. 72 KWs. , which was sanctioned by order dated 19-6-1995. On payment of the requisite amount, the Consumers got connection to the celler and the ground floor. The Board has in all, installed 28 meters to the said premises. Thereafter, on completion of construction of the first floor comprising of the total plinth area of 947. 12 sq. metres, the Consumers applied for supply of 9. 32 KWs. , for the entire building and for 13 additional connections. The Board requested the Consumers to pay a sum of Rs. 3. 55 lakhs being service charges for giving power, and in the alternative, authorised them to install a transformer and to handover the same to the Board for supply of energy and for maintenance, as per regulation. The Consumers challenged the said demand made under the Karnataka electricity Board Electricity (Supply) Regulations, 1988, as amended in 1995 (hereinafter called the 'regulations') contending that the said regulations are illegal, arbitrary and violative of Article 14 of the Constitution. Regulation 9. 03 defining specified load as power applied for or the assessed load whichever is higher is arbitrary and causes undue hardship to Consumers even though their requirement is less than the assessed load. It is averred that the assessed load is calculated under regulation 9. 02 for commercial, and for other types of installations at 75 watts per square metre for plinth area of the sanctioned plan and in respect of domestic installation at 50 watts per square metre on the above said area. In the cases on hand, the assessed load would come to 71. 034 KWs. , though requirement of the Consumers is only 9. 32 KWs. , and specified load would be 71. 034 K. Ws. and the Consumers are required to pay charges at Rs. 5,000/- per K. W. The difference amount would be highly exorbitant and arbitrary and there is no nexus between the object of the Regulations and the act in calling upon Consunters to pay as per the assessed load Collection of service charges on the assessed load is also highly unreasonable and arbitrary and hence, violative of Article 14 of the Constitution. It is also averred in the writ petition that even if the Consumers were to install a transformer, installation has to be done in proportion to the quantity of assessed load which would put the Consumers to undue expenses, and the separate classification of Consumers requiring more than 10 connections from others, is arbitrary and there is no nexus to the object sought to be achieved and hence, provisions of Regulations 9, 9. 01, 9. 03, 9. 04 and 9. 05 of the Regulations, are unconstitutional and liable to be quashed. The Regulations were further amended by notification dated 4-11-1998 and the writ petition was amended to challenge the above said Regulations as amended contending that their provisions are arbitrary and violative of Article 14 of the Constitution and ultra vires the powers of the Board under Sections 49 and 79 (j) of the Electricity (Supply) Act, 1948 (hereinafter called the 'supply Act') and Rule 27 of the Indian electricity Rules and Annexure-VI to the Rules.

(3.) THE respondent-Board has filed statement of objections denying the facts as alleged. Additional objections were filed after the amendment of the writ petition. It is stated that Regulations have been framed in exercise of the power under Sections 49 and 79 (j) of the Supply Act and they have statutory power. Regulation 9 is applicable only to commercial complex (es) or residential complexes, apartments, requiring specified load of 25 K. W. /10 or more connections under one premises or multistoried building/s having 4 or more floors including cellar floor. Petitioners have distorted true facts. Regulations were framed during 1984-85, when the cost of transformer for 250 KWs. was only Rs. 25,510/- and had fixed the sum of Rs. 750/- per K. W. or part thereof. Since then, there is increase and escalation in the prices of the material and transformers as also cable. Service charges were increased from Rs. 750/- per K. W. to Rs. 2,500/- per K. W. by amending Regulations with effect from 7-4-1994. There has been further escalation in the price of transformer and other materials and the Board is also experiencing difficulty in providing place for installing transformer to cater to the need of multistoried buildings and in providing infrastructure required to supply power. Hence, the Board further amended Regulations in 1995. As per the amendment, the building owners are required to provide infrastructure and deposit 20% as supervision charges on the estimate prepared on the total cost. The assessed power requirement of consumers was 56. 25 KWs. and assessed load 6. 72 KWs. was sanctioned for 28 installations and 28 installations were serviced during 1995. The Consumers applied for arranging additional power supply to 13 numbers. The plinth area as per modified plan would come to 1073. 925 sq. metres. As per the amended Regulations, assessed power will be 17 KWs. The Consumers would be required to pay Rs. 3. 55 lakhs. However, by a communication it was informed that the matter is pending consideration. Considering the extent of work and escalation in the prices of all accessories, 20% service charge is levied. The Board has worked out the extent of service charges/augmentation charges payable at Rs. 7,500/- per K. W. in Bangalore, in view of the underground cable system and at Rs. 5,oooa per K. W. in other places in view of overhead system, having regard to cost of materials used. The details of expenditure is enumerated in the additional statement of objections. It is also stated that the assessed power is worked out on the basis of Power Engineers' Handbook at 75 Watts/sq. metre for commercial and at 50 watts/sq. metre for residential accommodation, the relevant extract of which is produced at Annexure-RII.