INDIAN METALS AND FERRO ALLOYS LIMITED AND ANR. ETC versus STATE OF ORISSA & ORS. ETC. ETC.

INDIAN METALS AND FERRO ALLOYS LIMITED AND ANR. ETC versus STATE OF ORISSA & ORS. ETC. ETC.

The retrospective denial of clubbing benefit for power allocation to the petitioner company was impermissible as the company had relied on valid earlier permissions; no legal basis existed for treating export oriented units differently from other power intensive units for the purpose of clubbing benefit, as long as no special allocation had been made based on export status; such discriminatory denial is violative of Article 14.

Parties
Petitioner: Indian Metals and Ferro Alloys Limited; Respondent: State of Orissa; Respondent: Orissa State Electricity Board
Jurisdiction
India
Judgment Date
06 May 1987
Procedural Posture
Writ Petition (article 32) and Special Leave Petitions / Supreme Court Final Judgment
Outcome
Writ Petition allowed partially; Special Leave Petitions by State and Board dismissed; SLPs by Company disposed of.
Legal Topics
Electricity Supply Allocation, Clubbing of Energy Supply, Retrospective Withdrawal of Benefit, Export Oriented Industry Classification, Article 14 Discrimination
Electricity Law Administrative Law Constitutional Law Electricity Supply Allocation Clubbing of Energy Supply Retrospective Withdrawal of Benefit Export Oriented Industry Classification Article 14 Discrimination

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Parties

Indian Metals and Ferro Alloys Limited

Petitioner

State of Orissa

Respondent

Orissa State Electricity Board

Respondent

Procedural Posture

Writ Petition (article 32) and Special Leave Petitions / Supreme Court Final Judgment

Legal Issues

  1. 1 Whether the benefit of clubbing of electricity for multiple units can be withdrawn with retrospective effect under Section 22B of the Indian Electricity Act, 1910.
  2. 2 Whether denial of clubbing benefit to an export oriented industry violates Article 14 of the Constitution.
  3. 3 Whether export oriented industries can be separately classified under the Orissa State Electricity Board (General Conditions of Supply) Regulations, 1981.

Ratio Decidendi

The retrospective denial of clubbing benefit for power allocation to the petitioner company was impermissible as the company had relied on valid earlier permissions; no legal basis existed for treating export oriented units differently from other power intensive units for the purpose of clubbing benefit, as long as no special allocation had been made based on export status; such discriminatory denial is violative of Article 14.

Court Disposition

Writ Petition allowed partially; Special Leave Petitions by State and Board dismissed; SLPs by Company disposed of.

Orders

  • Quashing of State Government order dated December 8, 1986 refusing clubbing benefit.
  • Direction to respondents to allow the petitioner-company facility of clubbing of energy supply to all four units.