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2005 DIGILAW 1677 (SC)

AMAR AMIT JALNA ALLOYS (P) LTD. v. MAHARASHTRA STATE ELECTRICITY BOARDS

2005-10-20

G.P.MATHUR, P.K.BALASUBRAMANYAN, R.C.LAHOTI

body2005
ORDER 1. LEAVE GRANTED. 2. THE APPELLANT IS AN INDUSTRY SITUATED IN JALNA, MAHARASHTRA, MANUFACTURING STEEL INGOTS. THE APPELLANT RAN INTO ARREARS AND DEFAULTED IN PAYMENT OF BILLS- RAISED BY RESPONDENT 1 MAHARASHTRA STATE ELECTRICITY BOARD (HEREINAFTER REFERRED TO AS "THE BOARD"). IT APPEARS THAT THERE WERE SEVERAL DEFAULTERS AND THE BOARD WAS NOT IN A POSITION TO EFFECT RECOVERY. A PUBLIC INTEREST LITIGATION (PIL) WAS FILED IN THE HIGH COURT WHEREUPON THE BOARD BECAME ACTIVE, STARTED RECOVERY PROCEEDINGS AND ALSO DISCONNECTED SUPPLY OF ELECTRICITY TO SEVERAL INDUSTRIES INCLUDING THE APPELLANT HEREIN. 3. IT IS NOT DISPUTED THAT THE BOARD HAS FILED A SUIT AGAINST THE APPELLANT, REGISTERED AS CIVIL SUIT NO.8 OF 2003 BEFORE THE CIVIL JUDGE, SENIOR DIVISION, JALNA, FOR RECOVERY OF DUES OF RS 9.18 CRORES AND ODD. THE CORRECTNESS OF THE CLAIM MADE BY THE BOARD IS VEHEMENTLY DISPUTED BY THE APPELLANT AND THE 9 PLEAS IN THAT REGARD HAVE BEEN RAISED IN THE WRITTEN STATEMENT FILED IN THE CIVIL COURT. WE ARE INFORMED THAT THE SUIT IS AT THE STAGE OF THE FRAMING OF ISSUES WHERE AFTER TRIAL WOULD TAKE PLACE. 4. THE APPELLANT INITIALLY MOVED THE HIGH COURT HEARING THE PIL SEEKING A DIRECTION FOR RESTORATION OF ELECTRICITY SUPPLY TO IT. THAT PRAYER WAS NOT ENTERTAINED IN THE PIL WHEREUPON THE APPELLANT FILED A WRIT PETITION IN THE HIGH COURT SEEKING A DIRECTION TO THE BOARD TO RESTORE SUPPLY OF ELECTRICITY TO THE APPELLANT AND ALSO FACILITY OF PAYMENT OF DUES IN INSTALMENTS, INVOKING THE EQUITABLE JURISDICTION OF THE HIGH COURT. THE PETITION HAS BEEN DISMISSED BY ORDER DATED 1-4-2005. FEELING AGGRIEVED, THIS APPEAL HAS BEEN FILED BY SPECIAL LEAVE. 5. ON 11-5-2005, THE APPELLANT MADE AN OFFER OF SETTLEMENT AND PERSUADED BY THAT OFFER THIS COURT DIRECTED A LIMITED NOTICE TO ISSUE TO THE BOARD IN THE FOLLOWING TERMS: "THE LEARNED COUNSEL FOR THE PETITIONER STATES THAT THE PETITIONER INDUSTRY MAY BE SAVED FROM SINKING COMPLETELY AND THE PETITIONER COMPANY IS PREPARED TO PAY THE CURRENT BILLS MONTH BY MONTH WHICH WILL BE TO THE TUNE OF AROUND RS 30 LAKHS PER MONTH PLUS RS 50 LAKHS DOWN PAYMENT TOWARDS ARREARS AND RS 15 LAKHS PER MONTH TOWARDS REMAINING ARREARS." 6. THE BOARD HAS MADE APPEARANCE. OFFERS AND COUNTER-OFFERS FOR SETTLEMENT HAVE BEEN EXCHANGED. HOWEVER, THE PARTIES HAVE NOT BEEN ABLE TO ARRIVE AT TERMS. THE BOARD HAS MADE APPEARANCE. OFFERS AND COUNTER-OFFERS FOR SETTLEMENT HAVE BEEN EXCHANGED. HOWEVER, THE PARTIES HAVE NOT BEEN ABLE TO ARRIVE AT TERMS. ON 25-8-2005, THIS COURT FORMED A PRIMA FACIE OPINION THAT THE APPELLANT COULD BE ALLOWED FACILITY OF PAYMENT BY WAY OF INSTALMENTS, PROVIDED THE APPELLANT SHOWED ITS BONA FIDES BY DEPOSITING AN AMOUNT OF RS 50 LAKHS WITH THE BOARD ON OR BEFORE 7-9-2005. ADMITTEDLY, THE SAID AMOUNT OF RS 50 LAKHS HAS BEEN DEPOSITED BY THE APPELLANT ON 6-9-2005. 7. WE ARE TOLD AT THE BAR THAT THE APPELLANT INDUSTRY IS LYING CLOSED AS THERE IS NO SUPPLY OF ELECTRICITY SINCE 10-6-2002 AND THE APPELLANT INDUSTRY PROVIDES EMPLOYMENT TO ABOUT 100 WORKERS WHO HAVE ALSO BEEN RENDERED DESTITUTE ON ACCOUNT OF THE INDUSTRY HAVING BEEN CLOSED. 8. WE HAVE HEARD THE LEARNED COUNSEL FOR THE PARTIES AT LENGTH. AFTER TAKING INTO CONSIDERATION ALL THE FACTS AND CIRCUMSTANCES AND OTHER RELEVANT FACTORS POINTED OUT AT THE BAR, WE DISPOSE OF THE APPEAL IN TERMS OF THE FOLLOWING DIRECTIONS: (1) THE AMOUNT OF RS 50 LAKHS DEPOSITED BY THE APPELLANT ON 6-9-2005 WITH THE BOARD SHALL BE APPROPRIATED BY THE BOARD TOWARDS PAYMENT OF ARREARS. ANOTHER AMOUNT OF RS 25 LAKHS SHALL BE DEPOSITED BY THE APPELLANT WITH THE BOARD TO BE APPROPRIATED TOWARDS PAYMENT OF ARREARS ALONG WITH RECONNECTION CHARGES ONLY. THE LEARNED COUNSEL FOR THE BOARD HAS SUBMITTED THAT RESTORATION OF SUPPLY OF, ELECTRICITY TO THE APPELLANT HAS TO BE TREATED AS A FRESH CONNECTION. ON THAT ISSUE, WE ARE NOT EXPRESSING ANY OPINION AND RESERVE THAT PLEA TO BE ADJUDICATED UPON BY THE CIVIL COURT IN THE CIVIL SUIT ALREADY FILED. (2) ON THE AMOUNT OF RS 25 LAKHS AND RECONNECTION CHARGES, AS INDICATED HEREINABOVE, BEING DEPOSITED, THE BOARD SHALL RESTORE SUPPLY OF ELECTRICITY TO THE APPELLANT WITHIN ONE WEEK FROM THE DATE OF DEPOSIT. (3) WITH EFFECT FROM THE DATE OF RESTORATION OF SUPPLY OF ELECTRICITY, THE APPELLANT SHALL BECOME LIABLE TO PAY CURRENT ELECTRICITY CHARGES AS PER MONTHLY BILLS, CONSISTENTLY WITH THE TARIFF, RAISED BY THE BOARD BUT WITHOUT INCLUDING THE AMOUNT OF ARREARS THEREIN. THE CURRENT BILLS SHALL BE PAID BY THE APPELLANT WITHIN THE TIME APPOINTED BY THE BILL ALONG WITH AN AMOUNT OF RS 20 LAKHS, WHICH AMOUNT WILL BE TREATED AS PAYMENT TOWARDS ARREARS. THE CURRENT BILLS SHALL BE PAID BY THE APPELLANT WITHIN THE TIME APPOINTED BY THE BILL ALONG WITH AN AMOUNT OF RS 20 LAKHS, WHICH AMOUNT WILL BE TREATED AS PAYMENT TOWARDS ARREARS. (4) SUBJECT TO PAYMENT IN THE TERMS ABOVESAID, THE APPELLANT SHALL CONTINUE TO ENJOY THE SUPPLY OF ELECTRICITY DURING THE PENDENCY OF THE SUIT WHICH HAS ALREADY BEEN FILED. WE EXPECT THE TRIAL COURT TO DECIDE THE SUIT WITHIN A PERIOD OF ONE YEAR FROM THE DATE OF COMMUNICATION OF THIS ORDER TO IT. (5) INSOFAR AS THE EXACT QUANTUM OF LIABILITY OF THE APPELLANT ON ACCOUNT OF ARREARS, DPC CHARGES AND INTEREST ARE CONCERNED, THE SAME SHALL BE DECIDED BY THE CIVIL COURT. THE CIVIL COURT SHALL ALSO DECIDE WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE PRESENT CASE, THE APPELLANT WAS LIABLE TO PAY RECONNECTION CHARGES ONLY OR WOULD HAVE BEEN LIABLE TO PAY FRESH CONNECTION CHARGES. IN THE EVENT OF THE APPELLANT BEING HELD LIABLE TO PAY FRESH CONNECTION CHARGES, THE AMOUNT PAID TOWARDS RECONNECTION CHARGES PURSUANT TO THIS ORDER SHALL BE LIABLE TO BE ADJUSTED AGAINST THE AMOUNT OF FRESH CONNECTION CHARGES. (6) ALL THE PAYMENTS MADE PURSUANT TO THIS ORDER SHALL BE TREATED BY WAY OF AD HOC ARRANGEMENT. ALL THE PLEAS RAISED BY EITHER PARTY BEFORE THE CIVIL COURT SHALL BE AVAILABLE TO BE ADJUDICATED UPON ON THEIR OWN MERITS. THE CIVIL COURT WHILE FINALLY DECIDING THE LIABILITY OF THE APPELLANT SHALL TAKE INTO CONSIDERATION THE PAYMENTS MADE BY THE APPELLANT, PURSUANT TO THIS ORDER AND MAKE DIRECTIONS AS REGARDS ADJUSTMENTS AND APPROPRIATIONS. (7) IN THE EVENT OF DEFAULT IN PAYMENT OF CURRENT BILLS AND/OR ANY INSTALMENT TOWARDS ARREARS, THE ELECTRICITY SUPPLY SHALL BE LIABLE TO BE DISCONNECTED. 9. THE APPEAL STANDS DISPOSED OF IN THE TERMS ABOVESAID. 10. NO ORDER AS TO COSTS.