JMD ALLOYS LIMITED Vs. BIHAR STATE ELECTRICITY BOARD

JUDGEMENT

(1.) ORDER :--The petitioner is a company incorporated under the India Companies Act. It has a High Tension Industrial connection of electricity for running induction furnace (s) for manufacturing steel ingots.

(2.) The officials of the Bihar State Electricity Board ('the Board', hereinafter)inspected the petitioner's factory premises on August 26 and 27, 1999 and following the inspections a F.I.R. was lodged in which it is alleged that the petitioner was engaged in theft of electricity. On the following day, being 28-8-1999 the electricity line of the petitioner was disconnected at about 4 P.M. and three days later it was given the bill, dated 31-8-1999 (Annexure 11) for a sum of Rs. 8,85,77,131.00. This bill is raised on the basis of the penal provisions as contained in Clause 16.9 of the Board's tariff pursuant to the charge of theft of electricity on the basis of the inspection report, seizure memo and some other materials as would be discussed in due time. The petitioner has filed this writ petition challenging the demand made in the bill, dated 31-8-1999 and seeking a direction for restoration of its electricity line which stands disconnected from 28-8-1999.

(3.) Lately the Board seems to be making surprise checks and inspection of units engaged in the running of induction furnaces and disputes arising from disconnection of electricity lines and raising of bills under the penal provisions of clause.16.9 of the tariff are coming to this Court. The first such dispute that came to this Court, arising from the recent inspection made by the Board, was in the case of M/s. Venky Steels (P) Limited v. Bihar State Electricity Board (CWJC No. 4522/1999 : date of disposal 14-9-1999). (reported in 1999 (3) Pat. L.J.R. 473. In that case this Court took the view that it was essential for the Board to observe the principles of natural justice, at least its basic elements, before arriving at a finding that a consumer was engaged in the theft of electricity and consequently invoking the penal provisions of clause 16.9 of the tariff for raising demands and disconnecting the consumer's line for theft of electricity and / or non-payment of the demands made under clause 16.9. The bill raised against M/s. Venky Steels under clause 16.9 of the tariff was accordingly set aside with a direction to the Board to give a show cause notice to the company and to take a fresh decision in the matter after taking into consideration the show cause, if any, submitted on its behalf. However, having regards to the facts and circumstances of the case, this Court declined to give any direction for the restoration of the electrical line of M/s. Venky Steels in th meanwhile.