GULBARGA ELECTRICITY SUPPLY COMPANY LIMITED Vs. VASAVADATTA CEMENT

JUDGEMENT

(1.) IN this appeal, the parties have raised several contentions. On careful consideration of documentary evidence, in particular, letter of correspondence between appellants and the respondent, the trial court has held that excess deposit held by the appellants after the surrender of 8000 KVA by the respondent was adjusted in the following manner:

(2.) THE trial court had directed the appellants to return the deposit amount with interest at the rate of 24% from the date on which the deposit became due for payment. The learned Trial Judge having regard to the admission made by DW -1 (Executive Engineer of GESCOM) has held that the appellants are bound to return the deposit amount with interest at the rate of 24% per annum which in fact is the rate of interest charged by the appellants on its consumers on delayed payment of electricity consumption charges. The learned Trial Judge has answered issue No. 3 accordingly.

(3.) THE learned counsel for appellants has referred to Regulation 31.05 (e) of the Supply Regulations to contend that the appellants are not liable to pay interest exceeding 10% per annum. The relevant regulation 31.05(e) reads thus: