KCP LTD Vs. APSEB VIDYUT SOUDHA HYDERABAD

JUDGEMENT

(1.) The petitioner in Writ Petition No.16587 of 1990 is a Public Limited Company registered under the Companies Act, 1956 and it had setup among other things a Cement Plant at Macherla in Guntur District. The petitioner questions the legality and validity of levy and collection of Rs. 18 lakhs towards service line charges and Rs.20,000/- towards service connection charges for releasing an additional load of 3000 KVA. The petitioner also questions the legality and validity of BPMS No. 1160 (Commercial), dated 3-11-1989 and also the mode of computation of service line charges as illegal and ultra vires of the provisions of the Indian Electricity Act, 1910.

(2.) The brief facts leading to the filing of the writ petition are as under: The petitioner-Company entered into an agreement with the 1st respondent-Board and is availing electricity supply for its Cement Plant at Macherla classified as High Tension (HT) consumer. The petitioner was initially availing supply at a voltage of 11 KV. The 1st respondent-Board issued BPMS No.607, dated 21-7-1981 whereunder the consumers availing HT supply were required to change over to the stipulated voltages depending on their contracted maximum demand. Under the aforesaid Board proceedings, the petitioner is required to avail supply at 132 KV in place of existing 11 KV and the petitioner spent a crore of rupees in making arrangements to receive supply at 132 KV by erecting a sub-station. The petitioner was also asked to pay Rs.32.263 lakhs towards service line charges which were duly paid for the purpose of laying 132 KV supply line to its factory. The petitioner started availing supply of 132 KV from 23-6-1989 because of the delay on the part of the Board in releasing supply at 132 KV. The petitioner-company had undertaken the process of modernisation and expansion of its Cement Plant and to meet the additional requirements had requisitioned for an additional load of 3000 KVA over and above the existing demand of 8000 KVA on 20-7-1988. The same was duly sanctioned and the petitioner was asked to pay a sum of Rs. 18 lakhs towards the service line charges and Rs.20,000/- towards service connection charges for releasing the additional demand which were paid on 24-11-1989. The additional load was released on 11-1-1990.

(3.) The contention of the petitioner is that the said collection of Rs. 18 lakhs towards service line charges is unjustified since the release of additional load requisitioned required only a technical sanction and do not require installation of any additional equipment or service line. The petitioner contended that under the Electricity (Supply) Act, 1948 (hereinafter referred to as 'Supply Act') and Indian Electricity Act, 1910 (hereinafter referred to as 'Electricity Act') and it schedules, rules and conditions "of supply notified by the Board the service line charges are payable only towards cost of laying so or to amend the existing service line as may be necessary to be laid upon the property in respect of which requisition is made excluding the first 100 feet from the licensee's distributing mains. The petitioner further claims that the levy and collection of Rs.20,000/- as service connection charges is unauthorised, irregular and improper and the said collection is without authority and the release of additional load is without rendering any service and thus the said charge is assailed as arbitrary, exproprietory and confiscatory in nature.