M/S. NORTHERN INDIA IRON & STEEL CO ETC. versus STATE OF HARYANA & ANR .

M/S. NORTHERN INDIA IRON & STEEL CO ETC. versus STATE OF HARYANA & ANR .

Where power cuts instituted by government order restrict the Board's ability to supply contracted electricity, such circumstances are beyond the control of the consumer and entitle them to a proportionate reduction in demand charges under tariff clause 4(f). Duty under the Punjab Act is levied on the actual demand charge after reduction, and on the energy supplied.

Parties
Appellant: M/S. Northern India Iron & Steel Co. Ltd.; Respondent No. 1: State of Haryana; Respondent No. 2: Haryana State Electricity Board
Jurisdiction
India
Judgment Date
10 November 1975
Procedural Posture
Civil Appeal / Appeal by Special Leave From Punjab & Haryana High Court Judgment
Outcome
Appeals partly allowed
Legal Topics
Tariff Calculation, Demand Charge, Electricity Duty, Supply Conditions, Power Cuts
Electricity Law Administrative Law Tariff Calculation Demand Charge Electricity Duty Supply Conditions Power Cuts

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Parties

M/S. Northern India Iron & Steel Co. Ltd.

Appellant

State of Haryana

Respondent No. 1

Haryana State Electricity Board

Respondent No. 2

Procedural Posture

Civil Appeal / Appeal by Special Leave From Punjab & Haryana High Court Judgment

Legal Issues

  1. 1 Whether the Board is entitled to claim any demand charge from the appellants in respect of restricted electricity supply; if so, to what extent?
  2. 2 Whether the State of Haryana is entitled to levy duty under the Punjab Electricity (Duty) Act, 1958 on the demand charge; if so, to what extent?

Ratio Decidendi

Where power cuts instituted by government order restrict the Board's ability to supply contracted electricity, such circumstances are beyond the control of the consumer and entitle them to a proportionate reduction in demand charges under tariff clause 4(f). Duty under the Punjab Act is levied on the actual demand charge after reduction, and on the energy supplied.

Court Disposition

Appeals partly allowed

Orders

  • Appellants entitled to proportionate reduction in demand charges due to power cuts as per clause 4(f)
  • Duty under Punjab Electricity (Duty) Act, 1958, to be levied on actual, reduced demand charge and energy charge