CARBORUNDUM UNIVERSAL LTD Vs. GOVERNMENT OF KERALA

JUDGEMENT

(1.) The demand made under the Kerala Electricity (Duty) Act, 1963 (for short, "the Act"), is challenged in all these writ petitions. The questions raised are common and the facts stated are similar. We shall, therefore, refer to the necessary facts and the relevant exhibits in OP No. 9889 of 1986 for the purpose of this judgment.

(2.) The petitioner in OP No. 9889 of 1986 is Carborundum Universal Limited, a Company registered under the Indian Companies Act, having its registered office at Madras and several manufacturing units, a brown aluminium plant, a silicon carbide plant, electrocast refractory and white aluminium oxide plant in Kerala. Poised precariously, with sharp fall in the storage level of hydel reservoirs in this State and faced with an acute shortage in the supply of electrical energy, the State Government, in 1983 issued orders to regulate the supply of electricity to ensure equitable distribution. The Company was allowed to draw only 40% of their requirements. Steps were taken to import energy from the neighbouring States. When imported power was thus made available allotment to consumers was made under special orders. On 19-7-1983, the Government requested the KSEB to give the petitioner an additional quantum for August, 1983, from the imported power subject to availability and subject to the conditions that the total quantum of including the existing supply of 40% did not exceed 70%. There was a further condition that this additional supply shall be subject to their agreeing to pay an extra charge of 35 paise per unit for the imported power.

(3.) Thereafter, the petitioner Company gave a written undertaking "to pay an extra charge of 35 paise per unit of electrical energy-supplied to the Company over and above the present tariff rate applicable for the current charges towards the additional power sanctioned by the Kerala Government". It was also specified therein that the extra rate will be applicable only to the units consumed