M/S OSWAL AGRO MILLS LTD. versus PUNJAB STATE ELECTRICITY BOARD AND OTHERS.

M/S OSWAL AGRO MILLS LTD. versus PUNJAB STATE ELECTRICITY BOARD AND OTHERS.

As the TG Set’s load was sanctioned by competent authority, it was not unauthorized; surcharge under Clause 8-b could only be levied for loads which were actually unauthorized or not sanctioned. The demand notices failed to specify any breach of sanction conditions, hence surcharge demand was invalid.

Parties
Appellant: Oswal Agro Mills Ltd.; Respondent: Punjab State Electricity Board
Jurisdiction
India
Judgment Date
23 January 2013
Procedural Posture
Civil Appeal / Appeal From High Court, Letters Patent Appeal and Review Application
Outcome
Appeals allowed.
Legal Topics
Unauthorized Load and Surcharge, Sanction of Load, Tariff Schedule Interpretation, Compliance With Statutory Conditions
Electricity Law Administrative Law Unauthorized Load and Surcharge Sanction of Load Tariff Schedule Interpretation Compliance With Statutory Conditions

Case Brief

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Parties

Oswal Agro Mills Ltd.

Appellant

Punjab State Electricity Board

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court, Letters Patent Appeal and Review Application

Legal Issues

  1. 1 Whether the appellant was liable to pay load surcharge for an alleged unauthorized load under Clause 8-b of the Schedule of Tariff
  2. 2 Whether conditions attached to sanction of TG Sets were fulfilled and whether demand could be raised for unauthorized load on this ground
  3. 3 Whether the demand notices for unauthorized load were valid given the prior sanction

Ratio Decidendi

As the TG Set’s load was sanctioned by competent authority, it was not unauthorized; surcharge under Clause 8-b could only be levied for loads which were actually unauthorized or not sanctioned. The demand notices failed to specify any breach of sanction conditions, hence surcharge demand was invalid.

Court Disposition

Appeals allowed.

Orders

  • Impugned orders of Single Judge and Division Bench of High Court set aside.
  • Demand notices dated 01.06.1993 and 12.06.2009 quashed.