COCHIN CEMENTS LTD Vs. KERALA STATE ELECTRICITY BOARD

JUDGEMENT

(1.) Petitioner in O.P. No. 2948/96 has approached this Court seeking a direction to the Kerala State Electricity Board to grant exemption to the petitioners from power cut imposed vide Government Order G.O. (Rt.) No. 17/96/PD dated 2.2.1996 and also for a declaration that petitioner's industrial unit is entitled to contract demand of electricity 1600 KVA per month as agreed to be supplied by the Board. Petitioner is also challenging Ext.P6 communication from the Special Officer (Revenue) directing the petitioner to pay an amount of Rs. 51,58,948/- towards short assessment of demand charges and energy charges for the period from December 1996 December 1997 and Ext.P7 bill claiming the said amount. Common questions arise for consideration in other cases also and hence we are disposing of all these cases by a common judgment.

(2.) Petitioner in O.P. No. 2948/96 is a public limited company engaged in the manufacture and sale of cement. Company has established a cement manufacturing unit at Vellore, Kerala. Petitioner submits that the Government had as part of its industrial policy announced incentives in the matter of power connection under G.O. dated 21.5.1990. It was announced that power connection would be given on completion of any project irrespective of whether a general power cut was in force or not. Further it was also announced that new units commencing industrial production would be exempted from power cut for a period of five years from the date of commercial production. Petitioner had set up the industry based on the incentive announced by the Government, but due to delay in granting power connection petitioner could start the industry only in October, 1995. The Board had allotted 1600 KVA of power to the petitioner vide letter dated 26.4.1994. Petitioner stated that though he had executed agreement and also made deposit Board could not supply the stipulated quantity of 1600 KVA power, but only far less, that is, 1000 KVA of power subject to a cut of 37.5% on the maximum demand and a further restriction from drawing power between 6 p.m. to 10 p.m. every day. Due to inordinate delay in the supply of electricity petitioner could start commercial production only in October 1995.

(3.) Government of Kerala had issued order dated 6.1.1996 under Section 22B of the Indian Electricity Act imposing power cut on all industries having connected load of 10KW and above. Later the Government in supercession of order dt. 6.9.1996 issued an order dated 2.2.1996 regulating the supply, distribution and consumption of electrical energy. The Government had ordered that no power supply shall be made available for illumination and display lighting and ordered to impose load shedding. Further it was also ordered that 35% power cut be made applicable to all consumers having connected load of 10 KW and above except domestic and agricultural purposes. The Government also authorised to issue regulatory orders for implementation of power cut, fixation of monthly quota, price of energy to be realised for excess consumption. Certain categories of consumers were also ordered to be exempted. Following the directions of the Government and due to the imposition of power cut the Board issued order dated 5.2.1996 working its modalities. The monthly quota of new industries which started commercial production between 1.1.1995 and 31.12.1995 was also fixed.