LAWS(GAU)-1997-2-25

PURBANCHAL STEEL LTD Vs. ASSAM STATE ELECTRICITY BOARD

Decided On February 13, 1997
FURBANCHAL STEEL LTD. Appellant
V/S
ASSAM STATE ELECTRCITY BOARD Respondents

JUDGEMENT

(1.) In this Writ Appeal ihe appellants have challenged the Judgment dated 29.1.96 of the learned single Judge in Civil Rule No. 874/ 89,

(2.) The case of the appellants is that in the year 1982, the Government of Assam in the Industrial Department framed a Scheme (hereinafter called "the 1982 Scheme") for granting differenl incentives to new industrial units established in the State of Assam, One of the incentives granted under the 1982 Scheme was that new large, medium and small scale industrial units would he charged power tariff at the rate of Rs. 0.30 per unit for ihe first three years of commercial production. Acting on the representation held out by the Govt. of Assam in the 1982 Scheme, the appellants decided to set up a mini steel plant for production of MS Ingots, Steel casting etc. and applied to the Govt. of Assam for various incentives under the 1982 Scheme. The Udyog Vikash, the agency for implementation of the 1982 Scheme, issued a certificate dated 22.11.86 to (he effect that the appellant No. 1 M/s Purpanchal Steel Limited was registered with Udyog Vikash under registration No. UB/ 146, dated 22.11.86 and was eligible for incentives under the 1982 Scheme. Thereafter, the appellants made substantial investments in land, plant and machinery etc. and submitted a claim for the incentives under Ihe 1982 Scheme before the Udyog Sahayak of the Assam Industrial Development Corporation Limited which issued an eligibility certificate certifying that the appellant No. 1 commenced commercial production on 18.1.88 and was entitied to power subsidy for the period from 18.1.88 to 17.1.91. Despite ihe said certificates granted by the Udyog Vikash and Udyog Sahayak, the Assam State Electricity Board (for short the ASEB) raised bills on the appellant No. 1 at the normal rate of Rs. 1.00 per unit. The appellant No. 2 requested the Superintending Engineer, Guwahati Electrical Circle, ASEB to bill the appellant No. 1 at the subsidised rate of Rs. 0.30 per unit as stipulated in the 19S2 Scheme, but the Superintending Engineer refused to accede to the said request of the appellant No. 2. The appellant No. 1 had no other option but to pay the bills for the period from 18.1.88 to 31.3.89 at the normal rate of Rs. 1.00 per unit. The appellants then approached the Director of Industries, Assam, for reimbursment of differential amount between the subsidised rate of Rs. 0.30 per unit as stipulated in the 1982 Scheme and the normal rate of Rs. 1.00 per unit, but the said differential amount was not reimbursed to the appellant No. 1.

(3.) The appellants finally moved this Court in Civil Rule No. 874/89 for a Writ of Mandamus on the respondents to grant the incentives to the appellant No. 1. Company under the 1982 Scheme and for a direction on the ASEB to raise electricity bills at the subsidised rate of tariff of Rs. 0.30 per unit as stipulated in the 1982 Scheme and adjust the amount paid by the appellant No. 1 in excess of Rs. 0.30 per unit against future electricity bills. Alongwith the said writ application, an application praying for interim order was also filed. The Court issued Rule on 19.6.89 and passed interim orders on 22.6.89, 1.8.89 and 13.8.96 directing that the bills for Rs. 1,38,118.00 dated 24.6.89, Rs. 68,600/- dated 5.1.89 and Rs. 4,55,674.70 shall not be collected from the appellants until further orders of the Court. Thereafter the aforesaid Civil Rule was heard by the learned single Judge on 7.9.95, 12.9.95 and 3.10.95 and disposed of by the impugned judgment dated 29.1.96. The impugned judgment of the learned single Judge is in the following terms: