MADAN LAL STEELS LTD. Vs. GOVERNMENT OF TELANGANA

JUDGEMENT

(1.) The writ petitioner-Company was a High Tension (HT) Power Consumer bearing HT Sc.No.MDK-171. It used to undertake melt manufacturing of ingots by melting scrap iron for supply to steel re-rolling mills. The electric energy service connection of the petitioner unit was inspected on 19/3/1991 at about 11.45 AM by a Divisional Engineer. On finding certain artificial means in the form of sophisticated electric gadgets connected in the potential circuit on the rare side of the meter fixing board, the petitioner was suspected to have pilfered electric energy necessitating further investigation, which revealed the following:

(2.) In the meter box (installed for measuring electric energy consumed), the meter fixing board will be fixed to the rare side of the meter box with bolts and seals are fixed to these bolts to prevent any unauthorized person from gaining access to the inside of the metering circuit. In the present case, all the 4 numbers of the meter board fixing bolts seals are found tampered with and artificial means in the form of sophisticated electric circuit consisting of 2 Nos. DC 12 Volts coils, 1 No.110 V/17 V transformer and 1 No. printed circuit board having No. SK (NIC-7501) was found connected between the potential wires of Y and B phases coming from PTs to the test block by meddling thosetential wires. Besides the above, all the 4 Nos. CT secondary wires insulation was found removed for about one inch on each wire and black insulation tape was wrapped around. At that stage, a provisional assessment of loss of energy caused by the petitioner was assessed at Rs.7,78,72,081.60 Ps. and the petitioner was directed to pay 50% of the said provisionally assessed amount for restoration of the power supply. Questioning this provisional assessment notice, the petitioner instituted W.P.No.5657 of 1991 in this High Court and that writ petition was disposed of with a direction to the petitioner to deposit a sum of Rs.70,00,000.00 in four monthly installments of Rs.17,50,000.00 each and upon payment of the 1st installment, the power supply was directed to be restored. Since the petitioner paid the amount as directed by this Court in W.P.No.5657 of 1991, the electric energy supply was reconnected on 6/6/1991. Further, the Superintending Engineer/Assessment/ Hyderabad, was directed to conclude the enquiry, preferably, within a period of four months. Thereafter, the Superintending Engineer/Assessment (Special)/Hyderabad took up the enquiry. A show cause notice was issued by the Superintending Engineer/Assessment on 16/4/1991 raising a demand for payment of Rs.7,61,35,973.80 Ps. towards compensation for pilferage of energy + Rs.300.00 towards supervision charges anddays time was accorded to the petitioner to make his written submissions. However, after protracted correspondence, the petitioner requested for copies of inspection notes and also for arranging inspection of the dismantled meter box, meter etc., by a team of his Engineers and also sought for permission for cross-examination of Sri K.S.N. Murthy, Divisional Engineer, who carried out the inspection of the unit on 19/3/1991, by his advocate, as also the persons who had disconnected the electric line on 21/3/1991 and removed the meter board and meter box.

(3.) Accordingly, inspection of the dismantled meter box and meter board was arranged and the petitioner was informed that he could take the copies of the inspection note, panchanama report, etc., on 20/9/1991.