MANICKA MUDALIAR Vs. MADRAS STATE ELECTRICITY BOARD

JUDGEMENT

(1.) THESE two petitions have been posted before us as they involve a point or importance relating to the construction of two of the provisions of Electricity (Supply) Act, 1948. The petitioners were defendants in two suits brought by the madras State Electricity Board for recovery of arrears of charges for electricity supplied. In one of these petitions the charges related to the period November 1957 to March 1958. One of the defences which the Court below did not accept was that the Electricity Board has not been duly constituted under S. 5 so that it cannot have the benefit of S. 60, which means that the Board could not maintain the suits.

(2.) THE question turns on the construction of sub-section (4) of S. 1 of the Act, which reads :

(3.) THE Madras Electricity (Supply) Act was enacted to provide for rationalisation of the production and supply of electricity and generally for taking measures conducive to the development of electricity. One of the objects of the legislation, as appears from the statement of objects and reasons, which we think it is permissible for the Court to look into for the present purpose, is that it became necessary that the appropriate Governments should be vested with the necessary legislative powers to link together under one control development of electricity in contiguous areas by the establishment of what is generally known as the "grid system". With that object in view power is conferred to facilitate the establishment of the system in newly licensed areas and also to control the operations of existing licensees so as to secure fully co-ordinated development. But as is evident from the proviso to sub-section (4), the Central Government considered that not all the state Governments might act and co-operate simultaneously within the prescribed period and that it would be necessary therefore to enlarge the time limit for the state Governments to constitute electricity Boards in the relative States and bring into force the sections and constitute Boards. Having regard to this, it does not appear that the legislature intended by subsection