VENKATESHWARA ALLOYS P LIMITED Vs. STATE OF GOA

JUDGEMENT

(1.) Article 226 of the Constitution of India has been invoked by the petitioner, Venkateshwara Alloys (P) Limited, a Company incorporated under the Companies Act, 1956, and having its registered office at Bright Complex, Mehdipatnam, Hyderabad, for seeking a writ directing the respondents to forthwith restore the electric power supply to the petitioner's plant situated at Kundaim Industrial Estate, Kundaim Goa, which has been disconnected as back as on 14-12-1998, upon the payment of such amount by way of arrears of electricity charges as determined to be legally due and further for a declaration that the provisions of Clauses 29(b) and 31(c)(ii) of Notification dated 6-11-1989 published In the Official Gazette dated 18-1-1990 are ultra vires the powers of the State Government under the Electricity Act, 1910 in particular Section 24 thereof.

(2.) According to the petitioner-company, a plant for manufacturing ferro/silicon, manganese and chrome alloys was set up following an Agreement dated 28-2-1995, assuring regular supply of electric power to the said plant In required quantity, with the Government of Goa; and electric power was availed as per the terms and conditions set out in the said Agreement till May, 1998. The petitioner states that the respondents the State of Goa, and its Chief Electrical Engineer and Executive Engineer (Electrical), Imposed a power cut on the petitioner's plant allowing use of power only between 1st and 10th of every month with peak hours restriction from 16.30 hours to 22.00 hours, vide letter dated 5-5-1998, and these restrictions resulting in drastic power cut made it impossible for it to continue with the industrial production at the plant as its industry depended upon the continuous supply of electric power to the plant at the agreed quantity and as a consequence thereof the said plant was closed down in June, 1998.

(3.) In the aforesaid circumstances the petitioner states, the respondents discontinued power supply to the plant temporarily from 5-6-1998. Inability to pay the electricity bills, the petitioner states, was communicated to the respondents with the reasons therefor by the letter dated 23-6-1998. Finally, the electric supply to the plant was cut off by the respondents from 14-12-1998, according to the petitioner, without prior notice to it. However, the petitioner states, the respondents did not dismantle the service line material.