HINDUSTAN PETROLEUM CORPORATION LTD. Vs. THE ANDHRA PRADESH SOUTHERN POWER DISTRIBUTION COMPANY LTD. AND ORS.

JUDGEMENT

(1.) THIS Writ Petition is filed for a mandamus to declare the proceedings of respondent No. 3 in reference No. S.E/O/VJA/SAO/JAO -HT/R2.A3/D. No. 616/12, dated 1 -7 -2012, whereby he has recategorised the electrical connection of the Unit of the petitioner at Vijayawada bearing Consumer Service No. VJA 557 from HT Category -I to HT Category -II, as illegal and arbitrary.

(2.) THE petitioner averred that the Government of India has taken over M/s. Esso Standard Eastern Inc., (a foreign company) under Esso (Acquisition of Undertakings in India) Act 1974, to cater to the needs of public in the country of petroleum products; that in September 1974 the name of the said company was changed to Hindustan Petroleum Corporation Limited (HPCL); that thereafter some more oil companies, including M/s. Caltex Oil Refining (India) Limited, were taken over and merged with HPCL by the Government of India; and that HPCL is a Government of India Company under Section 617 of the Companies Act, 1956. It was further averred that the petitioner and its predecessor, apart from certain other units in other parts of the country, has established a huge Petroleum Refinery Unit in an extent of Ac.511 -00 at Malkapuram, Gullalapalem and Kancharapalem villages of the erstwhile Visakhapatnam Mandal, Visakhapatnam District. That the said Refinery which was originally established with a capacity of 0.675 Million Metric Tonnes (67.5 crore Kgs.) per annum has been expanded from time to time to its present capacity of 7.5 MMTs (750 crore Kgs) per annum at a cost of Rs. 1000 crore, making it the largest Refinery on the East coast; that the petitioner has also spent Rs. 700 crores towards environmental friendly measures; and that the upgradation of the petitioner -company has resulted in huge revenue earnings to the Government at the Centre, State and Visakhapatnam Port in terms of port and wharfage charges on crude imports and product dispatches. The petitioner has given certain details regarding the quantum of Sales Tax, Excise Duty, Customs Duty, Income Tax etc., paid for the year ending 31 -3 -2007, the number of persons employed by it either directly or indirectly and its contribution towards development of the areas surrounding its Refinery at Visakhapatnam Port.

(3.) IT was further averred that in view of the highly inflammable and volatile nature of the products (Hydro Carbons), sophisticated equipment is required to be deployed at every stage starting from the Refinery to the end user; that huge quantities of POL are being handled by way of transport, storage, addition or blending, and packing in special containers so as to make it feasible for the Retail Dealers and the customers; and that all the Units of the petitioner -company are required to comply with the various provisions of both the Central and State enactments viz., The Factories Act, 1948, The Environment (Protection) Act, 1986, The Explosives Act, 1884, The Petroleum Act 1934, The Industrial Disputes Act 1947, The Bureau of Indian Standards Act, and various Rules and Regulations framed thereunder. That the Units of the petitioner -company are classified as "Most Accident and Hazardous Units" under the Manufacture, Storage and Import of Hazardous Chemical Rules 1989 and as involving "Hazardous Process" under the Factories Act 1948. It was further averred that the Units of Visakha Terminal, Tadepalli and Sanathnagar were originally established in about 1965 and they were planned and designed for catering to the demand existing at that time; and that the electrical connection of the said three Units were categorized as HT Category -I (Industrial).