OUDH SUGAR MILL Vs. STATE OF U P

JUDGEMENT

(1.) Instant petition under Article 226 of the Constitution of India has been preferred by the petitioner Oudh Sugar Mill feeling aggrieved with the recovery notice initiated in pursuance to order issued with regard to electricity charges from July 1978 to 1983 in pursuance to UP Electricity (Duty) Act 1952 (Annexure-10).

(2.) The petitioner is a public limited company incorporated under the Indian Companies Act and possessing a sugar factory situated at Hargaon District Sitapur (U.P.). The sugar mill has been registered under the Factories Act 1948.

(3.) According to petitioner's counsel manufacturing process of sugar factory and its distillery is carried on with the aid of electricity generated by the petitioner from its own source of generating sets as well as electricity supplied by U.P. State Electricity Board (now U.P. Power Corporation) through 375 KVA transformer installed in the factory premises. It is alleged that the petitioner has installed five electricity generating sets. Three of which were steam turbo generating sets of 600, 660 and 1400/1600 KW respectively and one diesel generating set of 110 KW and one Rustin diesel generating set of about 50 HP. Since, three steam turbo generating sets had become very old to meet out the requirement, the petitioner decided to install a new turbo generating set of 2500 KW in February 1978. It is alleged that petitioner has obtained prior permission from the State Government with regard to generating set of 2500 KW and after completing other formalities required under the Electricity Act 1960 and Rules framed thereunder applied for its inspection on payment of Rs. 1500/- as fees. The newly installed turbo generating set was inspected on 24.5.1978 by the authorities of electricity department and after due permission the generating set become operative from 5.1.1979. According to the petitioner in view of new generating set the old sets became outdated and lost their utility hence dumped without use.