15 July 1996
Supreme Court
Download

BIHAR STATE ELECTRICITY BOARD Vs BIJOY MINING COMPANY

Bench: RAMASWAMY,K.
Case number: C.A. No.-009843-009843 / 1996
Diary number: 19420 / 1993
Advocates: Vs EJAZ MAQBOOL


1

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 2  

PETITIONER: BIHAR STATE ELECTRICITY BOARD

       Vs.

RESPONDENT: M/S BIJAY MINING COMPANY LTD. & ORS.

DATE OF JUDGMENT:       15/07/1996

BENCH: RAMASWAMY, K. BENCH: RAMASWAMY, K. G.B. PATTANAIK (J)

CITATION:  JT 1996 (7)   208        1996 SCALE  (5)686

ACT:

HEADNOTE:

JUDGMENT:                          O R D E R      Leave granted.      Heard learned counsel on both sides.      This appeal  by special  leave arises against the order of the  Division Bench  of the  High Court  of Patna,  dated September 21,  1993 made  in CWJA No.2811/93. Admittedly the respondent had  entered into an agreement with the appellant Board for  supply  of  electricity  pursuant  to  which  the respondent  was   required  to  pay  the  minimum  guarantee charges. When  a bill  was issued,  it would appear that the respondent had objected to the minimum guarantee bill on the ground that  there was erratic supply of electricity and the Board   unable  to  supply  the  required  quantity  of  the electricity. Consequently  the respondent  to not  liable to pay the minimum guarantee under the  contract the High Court allowed  the  writ  petition  finding  that  on  an  earlier occasion the  High Court  in CWJC No.3642/92 had disposed of writ petitions  on February  25, 1923 directing the Board to raise fresh   bill  giving proportionate  reduction  in  the annual minimum  guarantee charges,  but the  same not  being complied with  it is  not open to the Board to give the bill as impugned in the writ petition.      It is seen that clause 13 of the agreement provides a under:      "13. -  if at any time the consumer      is  prevented   from  receiving  or      using the  electrical energy  to be      supplied   under   this   agreement      either in  whole, or in part due to      strike,   riots,    fire,   floods,      explosions, act of God or any other      case reasonably  beyond control  or      if  the  Board  is  prevented  from      supplying or  unable to supply such      electrical energy  owing to  any or      all of  the cause  mentioned  above

2

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 2  

    than   the    demand   charge   and      guaranteed, energy  charge set  out      in   the Schedule  shall be reduced      in proportion to the ability of the      consumer to  take or  the Board  to      supply such  power and the decision      of the  Chief Engineer, Bihar State      Electricity Board,  in this respect      shall be final.      Note:  The   term  Chief   Engineer      includes additional  Chief Engineer      for the area concerned."      A reading thereof would clearly indicate that the Board is enjoined to give proportionate reduction provided any one of  the   conditions  enumerated   therein  had  occasioned. Obviously, an  application in  that behalf shall be required to be  filed to  the Chief  Engineer of  the Board  who  was required  to  investigate  into  the  matter  and  then  his decision  shall   be  final.   It  would   appear   that   a representation was  made, but it is not clear whether it was to the  Chief Engineer,  the competent authority in terms of the  agreement   or   any   other   officer.   Under   these circumstances,  unless   an  application   is  made  to  the competent authority  to investigate  into  the  matter,  the board in  terms of  clause 13 of the contract is necessarily obliged to  demand and  the consumer  is to  comply with the payment  of   minimum  guarantee  amount  in  terms  of  the agreement subject  to the  decision by  the Chief  Engineer. Accordingly we  set aside the order of the High Court giving liberty to  the respondents  to make  an application  afresh within a period of one month from the date of the receipt of this order  to the  Chief Engineer,  Electricity Board.  The Chief Engineer  would enquire  into and give the decision in that behalf. In the event, the Chief Engineer finds that the Board was responsible, then necessarily, in terms of clause the proportionate reduction is required to be given to the respondents.      The appeal is accordingly ordered. No costs.