M K GOLD PAINT P LTD Vs. ASSISTANT ACCOUNTS OFFICER ELECTRICITY REVENUE OFFICE EASTERN POWER DISTRICBUTION CO OF A P LTD

JUDGEMENT

(1.) The petitioner is a private limited company engaged in manufacture of paints. The company obtained electricity connection from A.P.Transmission Corporation in April 2002 duly paying the necessary charges for laying transmission lines and installation of transformer. At the time of availing power supply, the petitioner entered into agreement for purchase of electricity (the Agreement, in brief) on 15-03-2002. Clause 10 of the Agreement provides that the consumer shall pay minimum charges every month as prescribed by terms and conditions of supply and tariff order even if no electricity is consumed for whatever reason or if the electricity consumed is less than guaranteed minimum. Clause 11 of the Agreement casts an obligation on the consumer to pay special annual charges every year, if during any year falls short of the guaranteed minimum. It appears for the year 2002-2003, the consumption of the petitioner fell short of annual minimum guarantee (AMG) and therefore issued a letter dated 08-10-2004 calling upon the petitioner to pay a sum of Rs.19,504/- towards AMG charges for the year 2002-2003 and a sum of Rs. 20,524/- towards AMG charges for the year 2003-2004. This letter is challenged by the petitioner as illegal, arbitrary, unjust and violative of principles of natural justice. The petitioner also seeks a consequential direction to restore power supply, which was disconnected on 18-11 -2004 as the petitioner failed to pay the demanded AMG charges.

(2.) This Court initially; while ordering Notice Before Admission passed interim order directing the respondent to restore power supply on condition of the petitioner depositing half of the demanded amount. The respondent filed W.V.MP.No.1809 of 2005 along with the counter affidavit opposing the writ petition and also praying for vacating the interim order. The matter was heard at that stage itself and is being disposed of finally by this order.

(3.) In the counter affidavit, it is stated that the petitioner has to pay minimum guarantee of Rs.800/- per HP per year. The petitioner has 40 HP contracted load and he has to pay minimum guarantee amount of Rs.32,000/- , if the annual consumption of electricity falls below the value of Rs.32, 000/-. For the period April 2002 to March 2003, the petitioner consumed electricity, only to a tune of Rs.12,496/-, which falls short of minimum guarantee amount by Rs 19,504/-. Even for the year April, 2003 to March 2004, the petitioner consumed electricity of the value of Rs.11,476/- thus fell short of AMG by Rs.20,524 and therefore the impugned letter was issued demanding the amount after duly giving credit to electricity consumption charges paid.