PEENYA INDUSTRIES ASSOCIATION Vs. KARNATAKA ELECTRICITY BOARD

JUDGEMENT

(1.) CONSTITUTIONAL validity of Regulation 31. 04 of Karnataka Electricity Board (Supply) Regulations, 1988 has been called in question in these petitions. Also under challenge is the validity of Circular dated 22nd of April 1997 issued by the respondent K. E. B. , whereunder it has revised the Meter Security Deposit for L. T. Electronic Trivector Meters wherever installed to Rs. 13,710/- less the amount already deposited.

(2.) THE petitioners are small scale industrial Units and L. T. Consumers of electrical energy. They are also members of the Peenya Industries Association - Petitioner in W. P. No. 3701/1998. They are aggrieved in these petitions of a Circular dated 22nd of April 1997, where under the respondent has revised the Meter Security Deposit earlier prescribed for H. T. and L. T. Installations. According to the decision now taken in the case of L. T. Electronic Trivector Meters, the consumers are required to deposit Rs. 13,710/- less the amount already deposited towards the Meter Security Deposit. The decision to change the meters supplied to the consumers has its genesis in an earlier circular dated 31st of December, 1996 where under the Board had taken a decision to install Electronic Energy Meters in all high revenue yielding installations as such meters were considered to be more accurate, trouble free, and tamper proof. The Meter Security Deposit for Electronic Meters was accordingly revised to Rs. 1,300/- in the case of a single Phase connection and Rs. 3000/- in the case of a III Phase L. T. Installation. The circular stipulated that the security Deposit fixed was subject to variation from time to time and that the deposit would earn interest at the rate of 10% p. a. in terms of Regulation 31. 04 of the Regulations from the date the installation is serviced. The impugned Circular dated 22nd of April, 1997 is an improvement on the said decision in that instead of electronic meters, the Board proposes to provide electronic Trivector Meters and has accordingly revised the meters security Deposit for such Meters, to be deposited by the consumers in three equal interest free instalments. The Circular has come under challenge primarily on the ground that the decision to replace the meters was not supported by the provisions of Section 26 of the Indian Electricity Act, 1910, and was in any case arbitrary and unreasonable. By an amendment application moved by the petitioners they have called in question the constitutional validity of Regulation 31. 04 of the K. E. B. Electricity (Supply) Regulations, on the ground that the power to prescribe the meters Security Deposit from time to time was arbitrary and hence violative of Article 14 of the Constitution.

(3.) I have heard counsel for the parties.