RAMADAS MOVIES HOUSE Vs. TRICHUR MUNICIPAL COUNCIL

JUDGEMENT

(1.) The petitioner owns an air-conditioned theatre in Trichur. The Licencee competent to supply electric energy within the limits of Trichur Municipality is the Trichur Municipal Council, the 1st respondent. Electric energy is being supplied by the first respondent from the year 1971. It is the case of the petitioner that till May, 1982 electricity charges were being fixed by the first respondent at the same rate at which the Kerala State Electricity Board was prescribing from time to time. In May 1982 the first respondent increased the maximum demand charge from Rs. 30 per KVA per month to Rs. 50/- per KVA per month. The same was subsequently enhanced to Rs. 95/- with effect from 1-12-1982. The petitioner has challenged the said enhancement in this writ petition.

(2.) The principal contention of the learned counsel for the petitioner is that the first respondent had no competence to increase the tariif without due authorisation in this behalf from the State Government as required by S.58 of the Electricity (Supply) Act, 1948 (to be brief, Supply Act). To appreciate thecontention of the petitioner, S.58 of the Supply Act is extracted as follows :

(3.) The learned counsel for the petitioner however invited our attention to S.57 of the Supply Act which provides inter alia that the provisions of the Sixth Schedule shall be deemed to be incorporated in the Licence of eveny licensee not being a local authority. The Sixth Schedule provides that notwithstanding anything contained in the Indian Electricity Act, 1910 (9 of 1910) except sub-sec.(2) of S.22A, and the provisions in the licenses of a licensee, the licensee shall so adjust his charges for the sale of electricity whether by enhancing or reducing them that his clear profit in any year of account shall not, as far as possible, exceed the amount of reasonable return. But it has to be pointed out that S.57 of the Supply Act has no application in this case as it expressly states that it applies to Licensees not being local authority. Besides what is provided in the Sixth Schedule is that the tariffs shall be so fixed as far as possible not to exceed a reasonable return. It only fixes the maximum limit subject to which a licensee other than local authority can fix the tariff. We fail to see how any assistance can be derived either from S.57 of the Supply Act or the Sixth schedule for sustaining an argument that the power of the first respondent/local authority in the matter of fixing the tariff stands abridged in any manner.