THAR CEMENTS LTD Vs. R S E B

JUDGEMENT

(1.) THIS writ petition has been filed by Thar Cement Pvt. Ltd. which is an industrial consumer of electricity supplied by the Rajasthan State Electricity Board (hereinafter referred as to RSEB/Board) seeking directions from this Court, which are two -fold. It has first of all been prayed that the order dated 30.1.1997 issued by the RESB requiring the conversion of bank guarantee furnished by the petitioner into cash security be quashed and set aside. Secondly, it has been prayed that the letter dated 15.3.1997 and Clause 21A of the supplementary agreement entered into between the petitioner and the RSEB in terms of which the petitioner was required to deposit two months consumption charges as security in cash be quashed and declared ultra vires Article 14 of the Constitution of India.

(2.) IN order to test the reasonsableness of the prayer, learned Counsel for the parties were heard at length at the admission stage itself, from which it emerged that the RSEB has framed Rules called as General Conditions of Supply and Scale of Miscellaneous Charges Relating to Supply of Electricity, 1964. In terms of Clause 29 of the said Conditions, the Board is empowered to require any intending consumer to enter into a formal agreement and to deposit security as per the schedule of charges for the payment of energy to be supplied and, for the value of the meter and other apparatus installed in the premises. Condition No. 20(e) of the conditions, also provides that the Board shall be at liberty, at any time, to apply for security so deposited towards payment of satisfaction of any money which shall become due or owed by the consumer. The Board is also further empowered to demand enhanced security deposit at any time during the period of continuance of supply to him. Accordingly, the RSEB entered into an agreement with the petitioner and under Clause 21 (a) of the agreement the petitioner company was required to deposit security in cash, for which no interest was payable the sum equivalent to the charges of one month's consumption or upto Rs. 5,000/ - whichever is higher and balance of the security amount was to be in the form of bank guarantee or insurance guarantee from a Nationalised Insurance Company. Under the aforesaid provision, security deposit is to be made by the consumer at the prescribed rate in proportion to the connected load or three month's estimated consumption charges which ever is higher.

(3.) THE petitioner company thereafter, appeals to have deposited the amount of Rs. 14,81,944/ - being the electricity charges for the actual consumption of electricity on 6.3.1997, but failed to deposit fuel surcharge arrears.