JUDGMENT : - Antony Dominic, J. 1. In these batch of wit petitions, the issue that is raised is the validity of the appointment of the appellate authority, made under Section 127 of the Electricity Act, 2003 read with Appeal to the Appellate Authority Rules, 2004. Section 127 of the Electricity Act, provides for Appeal to the Appellate Authority. This section reads thus: "127. Appeal to appellate authority- (1) Any person aggrieved by a final order made under Section 126 may, within thirty days of the said order, prefer an appeal in such form, verified in such manner and be accompanied by such fee as may be specified by the State Commission, to an appellate authority as may be prescribed. (2) No appeal against an order of assessment under sub-section (1) shall be entertained unless an amount equal to half of the assessed amount is deposited in cash or by way of bank draft with the lincesee and documentary evidence of such deposit has been enclosed along with the appeal. (3) The appellate authority referred to in sub-section (1) shall dispose of the appeal after hearing the parties and pass appropriate order and send copy of the order to the assessing officer and the appellant. (4) The order of appellate authority referred to in sub- section (1) passed under sub-section (3) shall be final. (5) No appeal shall lie to the appellate authority referred to in sub-section (1) against the final order made with the consent of the parties. (6) when a person defaults in making payment of assessed amount, he, in addition to the assessed amount shall be liable to pay, on the expiry of thirty days from the date of order of assessment, an amount of interest at the rate of sixteen per cent per annum compounded every six months." 2. The Appeal to the Appellate Authority Rules, 2004 were framed by the Central Government in exercise of its powers under Section 176(2) of the Electricity Act, 2003. Rule 3 of the Appeal to the Appellate Authority Rules, 2004 provides thus: "3. The Appeal to the Appellate Authority Rules, 2004 were framed by the Central Government in exercise of its powers under Section 176(2) of the Electricity Act, 2003. Rule 3 of the Appeal to the Appellate Authority Rules, 2004 provides thus: "3. Appellate Authority - For the purpose of appeal under Section 127, the State Government may, by notification in the Official Gazette, constitute an Appellate Authority consisting of one more persons such that one of the persons shall have knowledge of matters related to assessment of electricity charges and none of them shall be directly related to the affairs of the territorial jurisdiction of the licensee or supplier of the electricity." (emphasis supplied) 3. Reading of Section 127 of the Act in the light of Rule 3 of the Appellate Authority Rules show that any person aggrieved by a final order made under Section 126 providing for assessment, may within 30 days of the order, prefer an appeal in the prescribed manner and accompanied by such fee as may be specified by the State Commission. Under Section 127(2) of the Act, no appeal filed under Section 127(1) of the Act shall be entertained unless an amount equal to half of the assessed amount is deposited with the licencee and documentary evidence is enclosed along with the appeal. 4. Rule 3 of the Appellate Authority Rules, 2004 specifically mandates that the appointment shall be by a notification in the official gazette and that the appellate authority shall consist of one or more persons such that one of the persons shall have knowledge of matters related to the assessment of electricity charges. It is further provided that none of the persons who constituted the Appellate Authority "shall be directly related to the affairs of the territorial jurisdiction of the licencee or supplier of the electricity." The term licencee has been defined in Section 2(39) of the Electricity Act, 2003 as the person who has been granted licence under Section 14 of the Act. Though the term 'supply' is defined in Section 2(70), the expression 'supplier' is not defined in the Act. 5. The language of the Rule 3 makes it clear that what is mandated is that the person or persons appointed as Appellate Authority as contemplated therein shall not be directly related to the territorial jurisdiction of the licencee or supplier of energy. 5. The language of the Rule 3 makes it clear that what is mandated is that the person or persons appointed as Appellate Authority as contemplated therein shall not be directly related to the territorial jurisdiction of the licencee or supplier of energy. This has been so done in order to ensure independence and impartiality of the Appellate Authority which are to hear the appeals filed against the orders of assessment passed by the officers of the Board in exercise of their powers under Section 126 of the Act. 6. In the purported compliance of Section 127 of the Act and the Appellate Authority Rules, the Deputy Chief Engineers of the Board were designated as the Appellate Authority under Section 127 of the Act. That came to be considered by this Court and in the order in R.P. No. 217 of 2012 in W.A. No. 213 of 2012, a Division Bench of this Court directed that the Electricity Board would nominate, for every Circle, the Deputy Chief Engineer of the neighbouring Circle as the Appellate Authority. In compliance with the above order passed by this Court, the Government issued G.O.(P) No. 27/2012 dated 06.11.2012, notifying the Deputy Chief Engineers of the Electrical Circles to be the Appellate Authority of their neighbouring Circles. 7. While the position stood as above, the orders of assessment under Section 126 of the Act were passed against the writ petitioners herein. Some of the writ petitioners filed appeals before the Deputy Chief Engineers who were notified as Appellate Authority vide G.O.(P) mentioned above and thereafter they filed the writ petitions contending that the constitution of the Appellate Authority vide G.O.(P) No. 27/2012 dated 06.11.2012 is not in terms of Section 127 of the Act and the Appellate Authority Rules. Insofar as the remaining writ petitions are concerned, the assessment orders are challenged by the consumers, complaining that since the Appellate Authority has not been validly constituted, there is no statutory forum available to them. Except W.P.(C) No. 15560 of 2013, in rest of the cases, the conditional orders of stay of recovery have also been passed. Insofar as W.P.(C) No. 15560 of 2013 is concerned, considering the fact that the allegation itself is that the energy availed of at higher tariff was used for a purpose attracting a lower tariff, an order of absolute stay of recovery was also passed. 8. Insofar as W.P.(C) No. 15560 of 2013 is concerned, considering the fact that the allegation itself is that the energy availed of at higher tariff was used for a purpose attracting a lower tariff, an order of absolute stay of recovery was also passed. 8. It is in this background, W.P.(C) No. 15161 of 2013 came up before the learned single Judge, when the Board and the State justified the appointment of the Appellate Authority relying on G.O.(P) No. 27/2012 and the order passed by a Division Bench of this Court in R.P. No. 217 of 2012 in W.A. No. 213 of 2012. However, the learned Single Judge held that the matter needs reconsideration for the reason that the order in R.P. No. 217 of 2012 was passed without noticing Rule 3 of the Appellate Authority Rules. It was accordingly that the learned Single Judge passed reference order dated 18.06.2013 in W.P.(C) No. 15161 of 2013 to be heard by a Division Bench. Thereafter, remaining cases were also tagged on to the said writ petition and these writ petitions are accordingly before us. 9. While these writ petitions were considered by a Division Bench, realising the illegality in the appointment made by the Government vide G.O.(P) No. 27/2012, the Government had agreed to make alternate arrangements in terms of the statutory provisions. Taking note of the submission so made, the case was being adjourned from time to time in order to enable the Government to issue orders appointing the Appellate Authority. Finally, when the case came up for consideration before this Court on 02.07.2014, the learned Government Pleader produced G.O. (P) No. 20/2014/PD dated 28.05.2014, published as S.R.O. No. 348/2014 whereby the Government of Kerala designated the Deputy Chief Engineers of Transmission Wing, Kerala State Electricity Board as the Appellate Authority for the purpose of appeal under Section 127 of the Electricity Act, 2003. On a perusal of the notification, this Court was, prima facie, of the view that the appointment made did not comply with the requirements of Section 127 of the Act and the Appellate Authority Rules. Therefore, order dated 02.07.2014 was passed requiring the Government to make alternate arrangements and accordingly, the case was posted to today. Today, when the matter was taken up, a statement was filed by the Under Secretary to Government, Power Department, in which it has been stated thus: "7. Therefore, order dated 02.07.2014 was passed requiring the Government to make alternate arrangements and accordingly, the case was posted to today. Today, when the matter was taken up, a statement was filed by the Under Secretary to Government, Power Department, in which it has been stated thus: "7. It is respectfully submitted that when an independent Appellate Authority as per the revised Appellate Authority rules can be constituted the provisions of office support, expenses towards salary of office staff, vehicle etc. for the same may also have to be done by the Government. Setting up of an exclusive Appellate Authority would add to extra administrative cash. In such circumstances, the Government decided to designate the Deputy Chief Engineer of Transmission Wing, Kerala State Electricity Board Limited (KSEBL) as the Appellate Authority for the purpose of appeal under Section 127 of Electricity Act, 2003. 8. It is submitted that Deputy Chief Engineer of the Transmission Wing, KSEBL is a separate profit centre as envisaged under Kerala Electricity Second Transfer Scheme (Revesting) as per the G.O.(P) No. 46/13/PD dated 31.10.2013 and published as SRO No. 871/2013 for the purpose of appeal under Section 127 of the Electricity Act, 2003. As per the above notification the Government have constituted 3 separate strategic units under KSEB Limited to manage the activities of Transmission, Generation and Distribution. The above three strategic business units are separate entities and have separate accounts and balance sheet. Since these units are separate entities, officer of one unit is posted through deputation to another strategic business unit. 9. Moreover, it is submitted that in the neighbouring State of Tamil Nadu as per its G.O(MS) No. 119 dated 27.11.2006, the Executive Engineers of State Transmission Utility/wing has been designated as the Appellate Authority. 10. Therefore, it is humbly submitted that this Hon'ble Court may kindly be accept the designation of Deputy Chief Engineer of Transmission Wing. KSEB Limited as the Appellate Authority for the purpose of appeal under Section 127 of the Electricity Act, 2003. A copy of the Government Order G.O.(P) No. 20/2014/PD dated 28.05.2014 is produced herewith and marked as Annexure I." 10. KSEB Limited as the Appellate Authority for the purpose of appeal under Section 127 of the Electricity Act, 2003. A copy of the Government Order G.O.(P) No. 20/2014/PD dated 28.05.2014 is produced herewith and marked as Annexure I." 10. Thus, according to the Government, in view of the bifurcation of the Kerala State Electricity Board Limited into three different strategic units viz., Transmission, Generation and Distribution units, they are separate entities and therefore, the Deputy Chief Engineer, Transmission Wing has to be treated as a person who is not directly related to the affairs of the licencee or supplier of electricity as contemplated under Rule 3 of the Appellate Authority Rules. It is on this basis the Government prays for upholding the designation of the Deputy Chief Engineer made vide G.O. (P) No. 20/2014 referred to above. 11. The learned Government Pleader made available a copy of the Kerala State Electricity Second Transfer Scheme (Re- vesting), 2013. This provides for the vesting of the assets and the liabilities of the Kerala State Electricity Board in Kerala State Electricity Board Limited, a company incorporated under the Companies Act. Clause 2(o) provides for constitution of three strategic business units to manage Transmission, Generation and Distribution. As per this scheme, Strategic Business Unit – T means Transmission Unit, Strategic Business Unit -G means the Generation Unit and Strategic Business Unit -D means Distribution Unit of the Kerala State Electricity Board Limited. This provides for the transfer of the respective unit of the Board in accordance with the scheme to the concerned unit. Clause (6) deals with the transfer of personnel and as per this clause, from the date of transfer, the personnel of the Kerala State Electricity Board shall stand assigned to the services of the company which shall absorb all permanent eligible personnel so transferred to it into its permanent services and shall remain on the rolls of the company which shall be responsible for their pay, benefits and other service conditions. 12. The aforesaid provision of the re-vesting scheme, 2013 shows that as a result of the re-vesting, all the employees of the KSEB stand transferred and absorbed into the services of the KSEB Limited from the date of transfer namely, the date of publication of the scheme in the official gazette, vide clause 2(d) of the scheme. 12. The aforesaid provision of the re-vesting scheme, 2013 shows that as a result of the re-vesting, all the employees of the KSEB stand transferred and absorbed into the services of the KSEB Limited from the date of transfer namely, the date of publication of the scheme in the official gazette, vide clause 2(d) of the scheme. This, therefore, means that irrespective of the constitution of the strategic business units, like every other permanent employees of the KSEB, the Deputy Chief Engineers, who are now designated as the Appellate Authority continue to be related to the affairs of the licencee or supplier, which is none other than the Kerala State Electricity Board Limited. In other words, irrespective of the whole exercise of transfer and vesting, the officers designated as Appellate Authority continue to be directly related to the company and consequently do not satisfy the requirements of Rule 3 of the Appellate Authority Rules that none of them shall be directly related to be affairs of the territorial jurisdiction of the licencee or supplier of the electricity. 13. Such being the case, the appointment of the Deputy Chief Engineers now effected by G.O.(P) No. 20/2014/PD dated 28.05.2014, cannot be upheld and the Government will have to make a fresh appointment satisfying the requirements of Section 127 of the Appellate Authority Rules. Insofar as the order in R.P. No. 217 of 2012 relied on by the State is concerned, a reading of the order shows that Rule 3 of the Appellate Authority Rules was noticed by this Court when this order was passed. Therefore, the order being per incuriam, cannot be relied to sustain the designation of Deputy Chief Engineers as the Appellate Authority. Therefore, these writ petitions are disposed of with the following directions: 1. The Government of Kerala shall appoint the Appellate Authority as contemplated under Section 127 of the Electricity Act, 2003 and the Appeal to the Appellate Authority Rules, 2004. This shall be done as expeditiously as possible at any rate within six weeks from the date of receipt of a copy of this judgment. 2. The Government of Kerala shall appoint the Appellate Authority as contemplated under Section 127 of the Electricity Act, 2003 and the Appeal to the Appellate Authority Rules, 2004. This shall be done as expeditiously as possible at any rate within six weeks from the date of receipt of a copy of this judgment. 2. Once the Appellate Authority is so constituted, the appeals that are already filed by the writ petitioners and which are pending before the Deputy Chief Engineers, who were appointed by virtue of G.O.(P) No. 27/2012, shall be transferred to the Appellate Authority and the Appellate Authority shall consider and decide those appeals on merits. 3. Such of the writ petitioners who have not filed appeals against the orders of assessment under Section 126 of the Act, shall file appeals as provided under Section 127 of the Electricity Act within one month of constitution of the Appellate Authority as directed above and if such appeals are filed, the same shall be dealt with on merits and disposed of accordingly. 4. Except in the case of the writ petitioners in W.P.(C) No. 15560 of 2013, the remittances made by the other writ petitioners in compliance of the order passed by this Court will be given credit towards the requirement of Section 127(2) of the Act and if there is any short fall in 50% required to be made good, the differential amount shall be remitted by the petitioners. Insofar as W.P.(C) No. 15560 of 2013 is concerned, his appeal will be entertained without insisting on any condition of pre-deposit. We clarify that we have not dealt with the merits of the contentions raised by the respective parties which are to be agitated and decided by the Appellate Authority and therefore, those contentions are left open. 14. These writ petitions are disposed of accordingly. However, we direct that the Government shall appoint the Appellate Authority in terms of the directions contained in this judgment and report compliance before this Court on or before 17.09.2014. It is clarified that subject to the above conditions, the stay orders passed by this Court will remain in force. Post on 17.09.2014.