PLASTO PRECESSORS Vs. GUJARAT ELECTRICITY BOARD

JUDGEMENT

(1.) JUDGEMENT In all the group of petitions points for which hearing has taken place, are common and therefore they are being dealt with by this common judgment. The contentions as sought to be raised by the learned counsel appearing on behalf of the respective parties to the extent they are relevant shall be dealt with hereinafter while dealing with the connected point.

(2.) It appears that the Electricity Act, 2003 (hereinafter referred to as "the New Act") has come into force vide notification, dated 10.6.2003 of the Govt.of India for the whole of the country. However, in the Act itself there are powers with the State Govt as per section 172(b) to declare that any or all the provisions contained in the new Act shall not apply in the State for such period not exceeding six months from the appointed day as may be stipulated in the notification. It further appears that in exercise of aforesaid power for Gujarat State notification, dated 4.6.2003 has been issued by the State Govt declaring that all the provisions of the new Act shall not apply in the State for a period of six months from the appointed day, i.e. 10.6.2003. Therefore, accordingly, it can be said for the Gujarat State the new Act was not made applicable upto 10.12.2004. As per section 185(1) of the new Act, the Indian Electricity Act, 1910 (hereinafter referred to as "Old Act"), the Electricity (Supply) Act, 1948(hereinafter referred to as "the old Supply Act") and Electricity Regulatory Commission Act, 1998(hereinafter referred to as "the Regulatory Commission Act") are repealed. However, the Ld.counsel appearing for the Electricity Board (hereinafter referred to as "the Board") Mr.Ramachandran and Ms.Bhaya, Mr.Majmudar and Mr.Pujara who normally appears for Ahmedabad Electricity Company and was permitted to intervene in the present proceedings contended that as per section 172(b) all licences, authorisations, approvals, clearances and permissions granted under the provisions of repealed laws shall continue for a period of one year and such licences, authorisations, approvals, clearances and permissions are deemed to be permissions under the Act and therefore it has been contended on behalf of respondent Board and the Electricity Company that the new Act would in reality come into force after a period of one year from 10.12.2003, i.e. 10.12.2004 and not prior thereto. Whereas the learned counsel appearing for the petitioners/consumers contended that the said clause applies to the extent of licences, authorisations, approvals, clearances and permissions granted under the old Act for a period of one year and it can not be construed that the implementation of the Act would not come into effect for a period of one years. Clause (b) of section 172 of the new Act reads as under: "172(b) all licences, authorisations, approvals, clearances and permissions granted under the provisions of the repealed laws, may for a period not exceeding one year from the appointed date or such earlier period; as may be notified by the Appropriate Government, continue to operate as if the repealed laws were in force with respect to such licences, authorisations, approvals, clearances and permissions, as the case may be, and thereafter such licences, authorisations, approvals, clearances and permissions shall be deemed to be licences, authorisations, approvals, clearances and permission under this Act and all provisions of this Act shall apply accordingly to such licences, authorisations, approvals, clearances and permissions."

(3.) On plain and simple reading of the aforesaid transitory provisions, it appears that all licences, authorisations, approvals, clearances and permissions granted under the provisions of repealed Act may continue for a period not exceeding one year from the appointed date, and such continuation is as if the repealed laws were in force, but such operation of repealed law in force is with respect to such licences, authorisations, approvals, clearances and permissions. Therefore, the functioning by the Board and the Electricity Company under the licences, authorisations, approvals, clearances and permissions under the old Act can continue to be in force upto 10.12.2004 but the operation of the old Act would continue with respect to such licences, authorisations, approvals, clearances and permissions only and not for any other purposes which are not connected with the licences, authorisations, approvals, clearances and permissions granted under the old Act. The question which may incidentally be required to be considered for the applicability of Part XII in the new Act and Part XIV of the new Act to the functioning by the Board and the Electricity Company under licences, authorisations, approvals, clearances and permissions granted under the old Act and the Part IV of the new Act deals with the matters of granting licence to generate the electricity power, Part V provides for the matters pertaining to the transmission of electricity. Part VI provides for the distribution of electricity. Part VII provides for matters pertaining to tariff of the electricity. Part VIII provides for matters regarding works of licensees generating and distributing the electricity. There are provisions made for constitution and functions of Central Electricity Authority under Part IX and for constitution, powers and functions of Central Commission under Part X. It further provides that under the old Act there were separate provisions made for the electricity and under the old Supply Act there were separate provisions made for regulating the supply of electricity and separate provisions were made for regulations made under old Regulatory Commission Act. It appears that under the new Act there is consolidation of law relating to generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of the electricity industry and therefore as the functioning of the Electricity Board and the Electricity Company under the licences, authorisations, approvals, clearances and permissions under the repealed laws, namely, the Old Act, Old Supply Act and old Regulatory Commission Act were made applicable and their functioning was subject to control of the authorities under the old Act, old Supply Act and old Regulatory Commission Act to the extent so far as they relate to the generating the electricity and supply of electricity to the consumers, charging of tariff, the terms and conditions for regulating the said tariff and the issues directly or indirectly connected therewith are concerned as they were under the old enactments, namely, old Act, old Supply Act and old Regulatory Commission Act and as now they are consolidated under the new Act, it would be reasonable to construe the operation of the repealed laws qua the rights governing the power of the Electricity Company vis-a-vis the rights of the consumers as per the repealed laws for a period of one year from the appointed day, i.e. upto 10.12.2004. The aforesaid view is supported by the decision of this court(Coram: R.R.Tripathi,J) in Appeal From Order No.197 of 2004 decided on 30.6.04 reported in AIR 2005 NOC 75(Gujarat) whereby the view taken at para 6 is that repealed laws would continue to apply for a period of one year, i.e. upto 10.12.2004.