TAMIL NADU ELECTRICITY BOARD MADRAS Vs. SRINIVASA INDUSTRIES

JUDGEMENT

(1.) This writ appeal has been filed by the Tamil Nadu Electricity Board, challenging the order dated 28-3-1995, passed in W.P. No. 6912 of 1992, filed by the first respondent herein, viz. Sree Srinivasa Industries.

(2.) By the instant order, the learned single Judge of this Court has allowed the writ petition and has held that the industry was entitled to the concessional tariff rate for a period of five years from the date of commencement of the industry viz. 7-8-1989 and that they would also be entitled to the backward area concession at the rate of 15% of consumption bills as available to the other industries. The learned single Judge has directed the respondent/appellant herein to give the petitioner the concessional rate of electricity for a period of five years and the backward area concession referred to above.

(3.) Some facts would be necessary to appreciate the controversy. The respondent industry set up its factory and started getting the electric energy with effect from 7-8- 1989. The industry is engaged in manufacturing Calcium Carbide which is used in gas weilding and cutting and they required the electrical energy for running the industry and for that purpose entered into an agreement with the TNEB for supply for 500 KVA, maxium demand of electricity. The supply of electricity to the High Tension electricity consumers is governed by the Schedule to the Tamil Nadu Revision of Tariff Rates on Supply of Electricity Energy Act (Act 1 of 1979) and more particularly, to the schedules appended to the Act. It is admitted case that the industry, which is set up in backward area gets the electrical energy in concessional rate of 15% for five years. At the time when the electric connection was granted to the industry, admittedly, the industry was at Thirumangalam, which was then a backward area. There is no dispute that at that time, the said village was notified backward area as per the relevant Government Orders. However, there arose a dispute after the connection was granted, in respect of this concession. The Government of Tamil Nadu issued G. O. Ms. No. 423 (ID), dated 7-7-1989 by which certain areas which were originally declared as backward areas were deleted with effect from 7-7-1989 and, unfortunately for the 1st respondent industry, Thirumangalam was one such area. On account of this, the TNEB refused to grant the backward area concession of 15% in the tariff for a period of five years. The Government issued another Government Order in G.O. Ms. No. 1808 (PW), dated 28-9-1989, extending concessional rates of electricity charges for a period of five years only to those industries which had been set up before 3-5-1989. Since the petitioner had obtained supply only on 4-8-1989, the TNEB took the position that the industry was not entitled even under G.O.Ms. No. 1808 to have the concessional rates for the period of five years . Since the rates of concession and the tariff therefor was disputed, the industry filed a writ petition.