UNI METAL ALLOYS LTD Vs. APSEB HYDERABAD

JUDGEMENT

(1.) In this writ petition the petitioner assails the action of the respondents in withdrawing the 25% power rebate allowed to the petitioner from 15-10-198 7/01/1988 and debiting the total sum of Rs.6,65,875.97 to its account and calling upon the petitioner to pay the said sum to avoid disconnection of power supply.

(2.) The petitioner established a mini steel plant which went into regular commercial production from 1-2-1985. In G.O. Ms. No.654, dated 13-7-1976 the Government granted 25% rebate on power tariff for certain specified industries for the initial period of three years commencing from the date of going into commercial production. It is not in dispute that mini steel plant was one of the industries specified in the said G.O. and as such the petitioner was entitled for 25% rebate on power tariff, the petitioner was also granted the eligibility certificate by the competent authority that is the Industries Department on 21-3-1985. In B.P. Ms. No. 691, dated 10-8-1976 the APSEB adopted G.O. Ms. No.654, dated 13-7-1976. Accordingly, the petitioner was granted 25% power rebate for a period of three years commencing from 1-2-1985 and ending with 31-l-1988. By B.P. Ms. No.946, dated 14-10-1987 the APSE Board excluded mini steel plants from the list of industries which are eligible for the 25% power rebate w.e.f. 15-10-1987. Pursuant to the said proceedings of the Board, the impugned letter dated 3-11-1988 was issued to the petitioner informing the petitioner that the 25% power rebate which was allowed to the petitioner for the period from 15-10-1987 to 31-1-1988 is withdrawn and the petitioner was called upon to pay a total sum of Rs.6,65,875.97 ps. representing the amount of rebate withdrawn within seven days from the date of the said letter to avoid disconnection of power supply. Hence, this writ petition.

(3.) The impugned action is assailed by the petitioner on two grounds. Firstly, as the rebate was granted by the Government as a matter of policy the Board has no power to withdraw the same unless and until the Government chooses to withdraw the same. The Government withdrew the rebate to mini steel plants only in the month of July, 1989 by G.O. Ms. No.379, dated 27-7-1989 by which time the petitioner had already completed the initial period of three years. Secondly, the Board is estopped from recovering the amount of power subsidy granted to the petitioner by the principle of Promissory estoppel.