GRAPHITE INDIA LTD. AND ANR. versus DURGAPUR PROJECTS LTD. AND ANR.

GRAPHITE INDIA LTD. AND ANR. versus DURGAPUR PROJECTS LTD. AND ANR.

Conditions for tariff revision imposed on sanction holders under Section 28 of the Indian Electricity Act, 1910 are contractual and not statutory. The requirement for sixty days notice before tariff revision is not mandatory and can be waived or varied by the State Government. Approval by the State for tariff revision, even if granted retrospectively, relates back to the date of revision and validates actions taken in anticipation. The burden of proof lies with the party challenging the tariff increase to demonstrate excess charges over reasonable return. 'Licensee' under the Supply Act does not include sanction holders unless specified.

Parties
Appellant: Graphite India Ltd.; Respondent: Durgapur Projects Ltd.; Respondent: State of West Bengal; Respondent: West Bengal State Electricity Board (WBSEB); Respondent: Respondent No. 4; Respondent: Respondent in D.P.L.
Jurisdiction
India
Judgment Date
27 August 1999
Procedural Posture
Civil Appeal / Final Judgment
Outcome
Appeals dismissed
Legal Topics
Tariff Revision, Electricity Supply, Licensee Vs. Sanction Holder, Retrospective Approval, Contractual Vs. Statutory Conditions
Electricity Law Administrative Law Contract Law Tariff Revision Electricity Supply Licensee Vs. Sanction Holder Retrospective Approval Contractual Vs. Statutory Conditions

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Parties

Graphite India Ltd.

Appellant

Durgapur Projects Ltd.

Respondent

State of West Bengal

Respondent

West Bengal State Electricity Board (WBSEB)

Respondent

Respondent No. 4

Respondent

Respondent in D.P.L.

Respondent

Procedural Posture

Civil Appeal / Final Judgment

Legal Issues

  1. 1 Whether conditions imposed upon sanction holder for electricity supply tariff revision are contractual or statutory
  2. 2 Whether requirement of sixty days notice for tariff revision and State Government approval is mandatory
  3. 3 Whether 'licensee' includes sanction holder under Electricity (Supply) Act, 1948

Ratio Decidendi

Conditions for tariff revision imposed on sanction holders under Section 28 of the Indian Electricity Act, 1910 are contractual and not statutory. The requirement for sixty days notice before tariff revision is not mandatory and can be waived or varied by the State Government. Approval by the State for tariff revision, even if granted retrospectively, relates back to the date of revision and validates actions taken in anticipation. The burden of proof lies with the party challenging the tariff increase to demonstrate excess charges over reasonable return. 'Licensee' under the Supply Act does not include sanction holders unless specified.

Court Disposition

Appeals dismissed

Orders

  • Appellants to pay costs.
  • Graphite India Ltd. to pay differential amount with charges for delayed payment as per agreement dated January 21, 1984.