SHRIRAM INDUSTRIAL ENTERPRISES LIMITED v. MUNICIPAL CORPORATION OF DELHI
1994-11-28
R.C.LAHOTI
body1994
DigiLaw.ai
R. C. Lahoti, J. ( 1 ) THIS is a petition under Section 20 of the Arbitration Act seeking appointment of an arbitrator consistently with the arbitration clause contained in the contract between the parties. ( 2 ) THE petitioner is a consumer of electrigity. There are two types of disputes which have arisen between the parties. Firstly, the DESU has revised its tariff by increasing the percentage of load violation charges to 30% w. e. f 11. 4. 92. The petitioner has been billed by the impugned bill for the period on 25. 3. 92 to 24. 4. 92. The contention of the petitioner is that for the period 25. 3. 92 to 31. 3. 92, governed by the old tariff, it could not have been charged at the rate of 30% at the rate of 30% percentage came into effect from 1. 4. 1992 only. Secondly; for the period 23. 11. 1992 to 19. 12. 1992 the maximum demand indicator meter was allegedly found to be faulty. The petitioner has invited attention of DESU towards the faulty meter. It was for the DESU to have replaced or rectified the meter. It could not have charged the petitioner arbitrarily on account of defect in the meter. ( 3 ) THE DESU has contested the petitioner s prayer for appointment of Arbitrator on both the counts. It is submitted that the petitioner has been billed consistently, with the billing cycle as contemplated by the tariff. Reading is taken periodically and the petitioner is billed accordingly. Clause 13 of the Contract between the parties provides as under : "the readings of the meters or meter REFERRED TO to in clause II supra shall be taken at regular monthly intervals and the readings so taken shall be conclusive and binding on both the consumer and the Undertaking as to the amount of maximum demand and electrical energy supplied to the consumer. "3. 1 Reliance is also placed on para 22 of the Conditions of Supply framed by DESU which are general in their application. It reads as under : " Meters and Meter Reading: (a) All meters, inductors and special apparatus required for metering the supply shall be installed, sealed and maintained by the Undertaking on the premises of the consumer and rent shall be charged in accordance with the - scale of charges attached herfto.
It reads as under : " Meters and Meter Reading: (a) All meters, inductors and special apparatus required for metering the supply shall be installed, sealed and maintained by the Undertaking on the premises of the consumer and rent shall be charged in accordance with the - scale of charges attached herfto. (b) The consumer may proyide such metering equipment instead of renting the same provided the same has been approved by the Engineer of the Undertaking and is strictly in accordance with his specification, Supply will not be commenced until the Undertaking s Engineer is satisfied regarding the accuracy and specification of the metering equipment. Before the consumer s meter can be approved if will be necessary to test it in the meter testing laboratory maintained by the Undertaking for the purpose for which the consumer shall pay the [prescribed testing fee. (c) The readings of meters shall be taken once an each month or at such intervals or times as the Undertaking may think expedient. (d) If at any time the meter belongs to the Undertaking and installed at the consumer s premises is found defective, the same shall be replaced by Undertaking. For the period during which the meter remained defective, the consumption shall be determined as follows : (i) Average recorded for the previous three season months for all consumers including perennial factories except those as brought out under item (ii) below. (ii) For seasonal factories and licenses either average of previous three months as in (i) above or last year s consumption for a similar period whichever is considered suitable by the Undertaking. 3. 2 As to the second dispute reliance is placed by DESU on Section 26 of the Indian Electricity Act, 1910 which provides a meter being installed and maintained.
3. 2 As to the second dispute reliance is placed by DESU on Section 26 of the Indian Electricity Act, 1910 which provides a meter being installed and maintained. Sub Section 6 thereof reads as under: " (6) Where any difference or dispute arises as to whether any meter REFERRED TO to in sub-section (1) is or is not correct, the matter shall be decided, upon the application of either party, by an Electrical Inspector; and where the meter has, in the opinion of such Inspector ceased to be correct, such Inspector shall estimate the amount of the energy supplied to the consumer or the electrical quantity contained in the supply, during such time, not exceeding six months, as the meter shall not, in the opinion of such Inspector, have been correct, but save as aforesaid, the register of the meter shall, in the absence of fraud, be conclusive proof of such amount or quantity. Provided that before either a licensee or a consumer applies to the Electrical Inspector under this sub- section, he shall give to the other party not less than seven days; notice of his intention so to do. "3. 3 It is further submitted on behalf of DESU that if there was any defect in the meter, then the remedy of the petitioner was to have made an application to the Electrical Inspector who would have decided the dispute. The petitioner cannot seek reference to arbitration. It is further sub-mitted that the dispute raised by the petitioner is frivolous inasmuch as an inspection was in fact carried out of the factory premises of the petitioner on 27. 9. 93 and the meter was found to be in order. A copy of the joint inspection report dated 22. 9. 93 has been filed as ANNEXURED-2 with the written statement. . ( 4 ) HAVING heard the counsel for the parties, this Court is satisfied that the petition is liable to be dismissed. ( 5 ) A dispute liable to be REFERRED TO to arbitrator must be a dispute raised bonafide and within the purview of the arbitration clause. It is not every and any dispute howsoever raised which is liable to be REFERRED TO. Clause 13 of the Agreement and para 24 of the Conditions of Supply, REFERRED TO to hereinabove, point out to the petitioner having been rightly billed for the period 25. 3.
It is not every and any dispute howsoever raised which is liable to be REFERRED TO. Clause 13 of the Agreement and para 24 of the Conditions of Supply, REFERRED TO to hereinabove, point out to the petitioner having been rightly billed for the period 25. 3. 1992 to 24. 4. 92 by levying 30% load violation charges for the period of billing once it was found that the petitioner had violated the load. The tariff applicable would be the one in force on the date of the bill. ( 6 ) AS to the second dispute the learned counsel for the respondent has rightly REFERRED TO to Section 26 of the Indian Electricity Act, 1910. This provision came for examination of the Supreme Court in -M. P. E. B. and others vs. Snit Basant Bai, AIR 1988 S. C. 71. Having REFERRED TO to Section 26 abovesaid especially sub section (1) and (6) thereof, their Lordships have stated : "it is evident from the provisions of this section that a dispute as to whether any meter REFERRED TO to in sub-section (1) is or is not correct has to be decided by the Electrical Inspector upon application made by either of the parties. It is for the Inspector to determine whether the meter is correct or not and in case te Inspector is of the opinion that the meter is not correct he shall estimate the amount of energy supoplied to the consumer or the electrical quantity contained in the supply during a period not exceeding six months and direct the consumer to pay the same. "their Lordships have made it clear that the dispute is (i) whether the meter is or is not correct; or (ii) if it is inherently defective or faulty not recording correctly electricity consumption - are the disputes which can be decided by the Electrical Inspector. However, if there is an allegation of fraud committeed by the consumer in tempering with the meter or (ii) manipulating supply line or (iii) breaking the body seal of the meter resulting in not registering the amount of energy supplied to the consumer or the electrical quantity contained in the supply - such disputes would not fall within the purview of sub section (6) of Section 26.
( 7 ) THE learned counsel for the DESU has also Relied on on a single Bench decision of Allahabad High Court in Premier Ice Factory Vs. Commercial Manager, kes Admn, AIR 1988 Allahabad. 8. which was also a case of dispute relating to meter. It was held: "sub-section (6) of Section 26 does not cast any duty on the licensee to refer any difference or dispute in respect of any meter for determination to the Electrical Inspector on behalf of the petitioner. If any difference or dispute was raised by the petitioner it was for it to make a reference to the Electrical Inspector for its determination. As the petitioner has not made any such application as required by sub-section (6) of Section 26 to the Electrical Inspector it cannot successfully urge that the respondents were not entitled to demand the arrears due against it because of the provisions contained in sub-section (6) of Section 26. " ( 8 ) WHAT should have been determined by the Electrical Inspector on an application made by the petitioner cannot be left to be determined by the Arbitrator at the asking of the petitioner. ( 9 ) AS there is no dispute within the meaning of Clause 25 of the Contract liable to be REFERRED TO to arbitration, the petition is held wholly misconceived and liable to be dismissed. It is dismissed accordingly. ( 10 ) CONSEQUENT to the dismissal of the petition, I. A No. 1799/93 is also rejected. Interim order dated 10. 2. 1993 is also vacated. However, electricity of the petitioner shall not be disconnected for a period of two weeks from today on account of non payment of demand which was under challenge.