BIHAR STATE ELECTRICITY BOARD versus M/S PULAK ENTERPRISES & ORS.

BIHAR STATE ELECTRICITY BOARD versus M/S PULAK ENTERPRISES & ORS.

Fixing rates of fuel surcharge under the prescribed formula is a legislative/arithmetic exercise not requiring opportunity of hearing. Inclusion of TVNL and deemed supply to TISCO as components in the calculation is not correct as per the formula, especially since TVNL did not exist in the base year and deemed supply cannot be treated as a separate category. Fuel surcharge must be strictly calculated as per the formula. Adjustment for Rs.100 crores paid by Coal Companies to be made for 1998-99.

Parties
Appellant: Bihar State Electricity Board; Respondent: M/s Pulak Enterprises & Ors.
Jurisdiction
India
Judgment Date
15 April 2009
Procedural Posture
Civil Appeal / Appeal From High Court Judgment in Batch of Writ Petitions
Outcome
Appeals by Board dismissed; appeals by private companies disposed of.
Legal Topics
Tariff Fixation, Fuel Surcharge, Subordinate Legislation, Natural Justice, Judicial Review, Article 14
Electricity Law Administrative Law Constitutional Law Tariff Fixation Fuel Surcharge Subordinate Legislation Natural Justice Judicial Review +1 more

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Parties

Bihar State Electricity Board

Appellant

M/s Pulak Enterprises & Ors.

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment in Batch of Writ Petitions

Legal Issues

  1. 1 Whether fixing rates of fuel surcharge is legislative or non-legislative and the necessity of hearing
  2. 2 Correctness and validity of formula for fuel surcharge calculation
  3. 3 Applicability and inclusion of TVNL and deemed supply to TISCO in fuel surcharge formula

Ratio Decidendi

Fixing rates of fuel surcharge under the prescribed formula is a legislative/arithmetic exercise not requiring opportunity of hearing. Inclusion of TVNL and deemed supply to TISCO as components in the calculation is not correct as per the formula, especially since TVNL did not exist in the base year and deemed supply cannot be treated as a separate category. Fuel surcharge must be strictly calculated as per the formula. Adjustment for Rs.100 crores paid by Coal Companies to be made for 1998-99.

Court Disposition

Appeals by Board dismissed; appeals by private companies disposed of.

Orders

  • Board directed to delete purchase from TVNL and deemed supply to TISCO as components in fuel surcharge calculation for years 1996-97 onwards.
  • Adjustment of Rs.100 crores paid by Coal Companies to Board to be worked out for 1998-99.