SARWOTTAM ISPAT LTD Vs. CENTRAL POWER

JUDGEMENT

(1.) ASCOMMON questions of law are involved on similar set of facts, all these writ petitions are heard together and are being disposed of by this common order. For the purpose of disposal, I refer to the facts as arise in W.P.No.31962 of 2012. The writ petition in W.P.No.31962 of 2012 is filed seeking directions by way of Mandamus, to declare Letter No.SE/OP/RRRN/ SAO/JAO-HT/D.No.365, dated 22.06.2012, issued by the Superintending Engineer of Central Power Distribution Company of A.P. Limited, as illegal, with consequential declaration that; (1) the petitioner is entitled to interest at the rate of 9.5% per annum, with effect from 13.02.2012, on the security deposit lying with the respondents and (b) that the respondents shall pay interest at twice the rate specified in Clause 7(1) i.e. at the rate of 19% per annum with effect from 13.02.2012, till they actually pay the interest for the consumption years 2011-12 and 2012-13.

(2.) PETITIONER is a Company having its industrial unit at Plot Nos.8, 11B, 12C and 12D of IDA Phase-III, Jeedimetla, Hyderabad and is engaged in the business of manufacturing iron and steel products. For the purpose of running the Unit, the petitioner had obtained HT power supply from the erstwhile Andhra Pradesh State Electricity Board. Prior to the year 1998, the law relating to production and supply of electric power was principally governed by the provisions under the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948. The Andhra Pradesh State Electricity Board was constituted and it was lookingafter the generation, transmission and distribution of power. The State of Andhra Pradesh has enacted A.P. Electricity Reforms Act, 1998, separating the Companies with regard to generation and transmission and created Generation Company of A.P. Ltd. i.e. AP GENCO and the Transmission Company of A.P. Ltd. i.e. AP TRANSCO. Under the very Act, several other Companies are formed to lookafter the distribution of power and such Companies are the licencees under the Act. Thereafter, the A.P. Electricity Regulatory Commission (Security Deposit) Regulation, 2004 (Regulation No.6 of 2004) was framed.

(3.) ON the deposit made by the petitioner, respondents were paying interest at the rate of 6% per annum, which was the bank rate of interest notified by the Reserve Bank of India. The Reserve Bank of India has revised the bank rate of interest with effect from 13th February 2012 from 6% to 9.5% per annum, in exercise of powers under Section 49 of the Reserve Bank of India Act, 1934. In view of revision of the bank rate of interest as notified by the Reserve Bank of India, the petitioner has made a representation dated 04.06.2012, for revising the rate of interest from the said notified date and to adjust such amount in the bills. A further letter dated 20th June 2012, was also addressed on similar lines, and in response to the same, the 2nd respondent herein has issued the impugned letter dated 22.06.2012, in Letter No.SE/OP/RRRN/SAO/JAO-HT/D.No.365, stating that the Andhra Pradesh Electricity Regulatory Commission has not approved the revised rate of interest as per Clause 7 of Regulation 6 of 2004. It is stated that as there is no approval for payment of interest at the rate of 9.5% by the Andhra Pradesh Electricity Regulatory Commission by way of notification in the official gazette, petitioner is not entitled for interest at the rate of 9.5% per annum as against 6% per annum on the consumption deposit.