HARISHANKAR GIRI Vs. CENTRAL ELECTRICITY SUPPLY

JUDGEMENT

(1.) PETITIONER No. 2 which is a Company incorporated and registered under the Indian Companies Act, 1956 represented through its Managing Director, petitioner No. 1, has challenged the legality, validity and propriety of the notice dated 24.4.2001, vide Annexure 1 along with a Field Meter Test Report issued by opp. party No. 3, the Divisional Manager, Central Electricity Supply Company (in short 'CESCO') or Orissa, Dhenkanal Electrical Division for showing cause as to why the power supply to the Petitioners' Company shall not be disconnected and also the Penal Bill for the period from 18.8.2000 to 31.3.2001, vide Annexure 2 issued by opp. party No. 2, the Executive Engineer, CESCO, Dhenkanal Electrical Division, the same being arbitrary, whimsical and mala fide.

(2.) PETITIONERS ' Company is being promoted in the joint sector with IPICOL first set up a Mini Steel Plant at Gundichapada, Dhenkanalin the year 1984 with a manufacturing capacity of 50,000 Metric Tonnes of Mini Steel ingots through its Electric Arc. Furnace of 18/20 Metric Tonnes capacity per heat. Accordingly, a contract demand for 7778 KVA was executed between the petitioner's Company and the erstwhile Orissa State Electricity Board which has been taken over by opp. party No. 1. In course of time the petitioner's Company suffered from severe financial crunch and, therefore, became a sick industry and the matter was referred to BIFR under the Sick Industrial Companies (Special Provisions) Act, 1985. It is further stated by the petitioners that a Rehabilitation Scheme was introduced after taking into consideration the stand of the financial institution, Bank, the State of Orissa, the erstwhile Orissa State Electricity Board and the Grid Corporation of Orissa (hereinafter referred to as 'Gridco').

(3.) THE opp. parties have challenged the benefits admitted to the petitioners' Company by the BIFR and to stultify the Rehabilitation Scheme made an attempt to thwart the progress of the Company. On 21.4.2001 some officers of the opp. parties had visited the premises of the petitioners' Company at Gundichapada and wanted to have a shut down of the power supply so that they can test the metering unit (CT/PT set installed on the pole). Since the contract labourers were working and sudden shut down would result in damage to the machineries and other consequential loss to the tune of few lakhs, they registered strong protest to the shutting down of the electric power supply during the shift. The officers of the opp. parties could not carry on the testing job at CT/PT point on the pole without shutting down the electric current. Finally some of the officers of the opp. parties were able to shut down the electric current from their Sub Station and carried on their testing operation which continued till 9.20 P.M. This exercise was conducted neither in the presence of petitioner No. 1 nor any of its officers. After some time the opp. parties abruptly issued a notice on 24.4.2001 threatening to disconnect the power supply. They also forwarded xerox copy captioned as Field Meter Test Report, vide Annexure 1 which was communicated to the petitioners on 24.4.2001. Immediately thereafter, i.e. on 25.4.2001 another notice imposing penalty to pay an imaginary inflated and speculative amount of Rs. 13,82,48,463.00 was communicated for the period 18.8.2000 till 31.3.2001 and threatened to disconnect the power supply to the petitioners' premises.