UNION OF INDIA Vs. STATE OF BIHAR

JUDGEMENT

(1.) THE subject matter of this Letters Patent Appeal is a dispute between the East Central Railway, on the one hand, and the erstwhile Bihar State Electricity Board, (for short, 'the respondent') on the other hand.

(2.) THE facts, in brief, are that the appellant was extended power supply at its Khagaria Railway Station by the respondent through L. T. connection. In the year 1990, an application was made by the appellant to the respondent for extension of H.T. connection. An agreement, in relation thereto was entered into on 05.03.1998. The L.T. power supplies were snapped and the bills were being raised only for H. T. power supply. Through a bill dated 23.10.2002, the respondent demanded a sum of Rs.57,74,397/ - from the appellant. This included a sum of Rs.26,79,572/ - for H.T. consumption charges from December 1991 to February, 1998. The remaining amount represented the consumption charges which were already paid.

(3.) THE appellant objected to the raising of bill of Rs.26,79,572/ -. According to it, when the H.T. power supply was given for the first time in February, 1998, there was absolutely no basis for raising any bill for any period earlier thereto. Since the respondents did not change their stand, the appellant filed CWJC No.1370 of 2004 challenging the demand of Rs.26,79,572/ -. An interim order of stay of further proceeding was passed on 30.01.2004 on condition that the appellant shall deposit a sum of Rs.13,00,000/ -; and the same was paid. The writ petition was disposed of on 21.3.2013 observing that the dispute be referred to the Chief Secretary, Government of Bihar, for amicable settlement. On 07.05.2013, the Chief Secretary passed an order, not only upholding the demand of Rs.26,79,572/ -, but also observing that the appellant is liable to pay delayed payment surcharge as per the Rules. Based upon it, Electrical Superintending Engineer, Electric Circle, Sahasra, - the 8th respondent issued notice dated 14.05.2013 demanding a sum of Rs.1,77,49,828/ - from the appellant.