08 March 1988
Supreme Court
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HYDERABAD ENGINEEIRING INDUSTRIES LTD. ETC. ETC. Vs A.P. STATE ELECTRICITY BOARD ETC. ETC.

Case number: Appeal (civil) 793 of 1988


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PETITIONER: HYDERABAD ENGINEEIRING INDUSTRIES LTD. ETC. ETC.

       Vs.

RESPONDENT: A.P. STATE ELECTRICITY BOARD ETC. ETC.

DATE OF JUDGMENT08/03/1988

BENCH: OZA, G.L. (J) BENCH: OZA, G.L. (J) MUKHARJI, SABYASACHI (J)

CITATION:  1988 AIR  985            1988 SCR  (3) 159  1988 SCC  (2) 181        JT 1988 (1)   507  1988 SCALE  (1)471

ACT:      Electricity  Supply  Act,  1948-Section  49  -Scope  of powers of  Electricity Board-Whether  Electricity Board  has power unilaterally  to alter  the conditions  of  supply  of electricity.      Electricity Supply  Act, 1948-Sections  28 and  29 read with Sections 18 and 18A contemplate different function than the Electricity  Board unilaterally  altering the conditions of supply of electricity under Section 49.

HEADNOTE: %      On 21st July, 1981, the Respondent Andhra Pradesh State Electricity Board  issued a  notification  exercising  power under section  49 of  the Electricity  Supply Act,  1948. By this  notification   the  Board   unilaterally  altered  the conditions of  supply of  electricity to  high tension power consumers. This notification stated that the industries will be supplied  the power  for the  contracted demands  between 1501 KVA  to 5000  KVA, at  33 KV  whereas industries  whose contracted demand  is above  5000 KVA  shall avail supply at 132 KV  or 220  KV. To  comply with  this  requirement  high tension consumers  will either  have to replace the existing transformers and  high tension  control gears  or to  instal transformers with control gears to step down supply from the now proposed  voltage to  the  existing  voltage  and  these modifications have  to be  made by  the industries concerned within  a   period  of  6  months  from  the  date  of  this notification. It  was further  provided that after the lapse of six  months if  the consumers  have not made arrangements for  receiving  the  supply  at  the  proposed  voltage  and continue to receive supply at the voltage at which they were receiving on  the date of the notification they will have to pay additional  surcharge ranging  between 2.5%  to  13%  on their power  bills. The  appellants which  were consumers of high  tension   power  challenged   the  validity   of  this notification by  way of  filling writ  petitions before  the High Court.  A Single  Judge allowed  the writ petitions. In appeal a Division Bench took the view that section 49 of the Act coupled  with section  18(c) of the same Act empower the electricity  board  to  unilaterally  alter  the  terms  and

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conditions of  supply, and  set aside  the judgement  of the Single Judge. Hence these appeals by Special 160 Leave against  the Judgment  of the Division Bench. The main controversy was  whether the board had power unilaterally to alter the  conditions of  supply of  electricity. Dismissing the appeals this Court, ^      HELD: The  contention  of  the  appellants  that  under section  49   the  respondent   board   had   no   authority unilaterally to  alter the  conditions of  supply cannot  be accepted. Sub-clause  1 of  section 49  of  the  Electricity Supply Act,  1948 clearly  provides that the board could lay down conditions of supply and for purposes of such supply it may also  frame  uniform  tariffs.  Sub-clause  t  therefore clearly authorises  the Board  to lay down the conditions of supply and  have to  fix uniform  tariffs is provided for in sub-clause 2.  If there  is any  doubt sub-clause 4 makes it clear that  in exercise  of powers  under this section Board could fix the conditions of supply and also fix the tariffs. [l68B-C; 167B-C]      The Division  Bench relied  on provisions  contained in Section  18(c).  It  is  no  doubt  true  that  under  these provisions  the  Board  exercises  control  in  relation  to generation, distribution  and utilisation of electricity and the learned  Judges of the Division Bench felt that although specified power  is not  there under Section 18(c) but it is wide enough  to authorise  the board to alter the conditions of supply.  It is  no doubt  true that section 18(c) confers power of  control on  the  board  but  in  our  opinion  the specific power  under section  49 Clause  t is  clear enough wherein board  has been authorised to lay down conditions of supply. [168C-E]      The contention  that the  policy of the Board to change over of  supply of  power at  a high  voltage which involves heavy expenditure  will fall within the scope of sections 28 and 29  and therefore it could not be done without following the  procedure   indicated  in   these  provisions   has  no substance. A  perusal of  sections 28  and  29  of  the  Act indicates that  it is altogether a different function rather than what  is being  done by  the Board  in exercise  of the powers under Section 49 Clause 1.[171G]      As regards  the imposition  of  the  higher  tariff  on failure to  receive the  supply at  the voltage indicated in the notification from the date specified therein or not will be open  to the  Board for consideration and the parties may approach the  Board and  it will be open to the Board in the facts and  circumstances  of  each  case  not  to  levy  the surcharge indicated  in the notification during a particular period  and   in  so   doing  the   board  will   take  into consideration the facts and circumstances of each particular case [172A-B] 161      The contention  that the  loss incurred  in respect  of smaller consumers  is recovered from the present appellants, the  high   tension  consumer,   has   no   substance.   The transmission loss no doubt is on account of low voltage when it travels  Long distance  as it  is related to distance but the quantum  of loss  also is proportional to the quantum of power that  travels through  the transmission  lines and  it could not  be disputed  that the power that has to travel to meet the  requirements of  small agricultural  consumers  is negligible as  compared to  the quantum  of  power  that  is supplied to these high tension consumers. [170H; 171A-B]      The  contention   that  under   section  18(A)(I)  read

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alongwith section 18(A)(23) of the Electricity Supply Act it is the  duty of  the board  to establish  and  maintain  sub stations and  main transmissions lines and it is not open to the board  to transfer  this responsibility to the consumers by requiring  them to  make their  own arrangements  to step down electricity  after taking  it at  a high voltage has no substance. Section  2 sub-clause  7 of  the Act  defines the main transmission  lines but  all this  in sub  clause 7  of section 2  refere to  is about  transmission of  electricity from a  generating station  to another generating station or to sub-station.  Apparently it  refers to  all the lines and equipments required  to be  installed  from  the  generating station to  the distributing  sub-station.  Apparently  both being that  of the Board itself it has to maintain it and on this basis  it could  not be  contended that if the consumer has to  receive powers  at a high voltage and if he wants to utilise it  at a low voltage it is not his responsibility to instal equipments  for stepping  down the  power  from  high voltage to low voltage. [171C-E]      Maharashtra State  Electricity Board  v. Kalyan Borough Municipality &  Anr., [1968]  3 SCR  137; Bisra  Stone  Lime Company Ltd.  & Anr. etc., v. Orissa State Electricity Board and Anr., [1976] 2 S.C.R. 307 and Jagadamba Paper Industries (Pvt.) Ltd.  Etc. Etc.  v. Haryana State Electricity Board & Ors. Etc., [1984] I S.C.R. 165, referred to.

JUDGMENT:      CIVIL APPELLATE  JURISDICTION: Civil  Appeal No. 793 of 1988 etc.      From the  Judgment and  order dated  25.6.1987  of  the Andhra Pradesh High Court in Writ Petition No. 8019 of 1987      F.S. Nariman,  G.L. Sanghi, A.K. Sen, Dr. L.M. Singhvi, Anil B.  Diwan, K.  Srinivasamurthy,  Kailash  Vasdev,  K.K. Jain, K.S. Murthy, U.K. Khaitan, Ajay K. Jain, Vipin Sanghi, Parveen Kumar,  A.M. Singhvi,  R.S. Yadav,  H.M.  Singh,  N. Waziri, Vinoo Bhagat, Shree 162 Narain and Sandeep Narain for the Appellants.      Shanti Bhushan,  V.B. Reddy  and K.  Rajendra Chaudhary for the Respondents.      The Judgment of the Court was delivered by      OZA, J. Leave granted.      These special  leave petitions  have been filed against the judgment  of the  Division Bench  of the  Andhra Pradesh High Court  delivered on  25.6.87 wherein the learned Judges set aside  the orders passed by learned Single Judge, of the High Court  in Letters  Patent Appeal.  The petitioners  had filed writ  petitions before the High Court which were heard by a  learned Single Judge and who by his orders quashed the notification issued  by the  respondent Board  dated 21.7.81 unilaterally altering  the conditions of supply. The learned Single  Judge   held  that   the  Board   had  no  authority unilaterally  to   alter  the   conditions  of   supply   of electricity but on appeal the learned Judges of the Division Bench set  aside the judgment passed by the Single Judge and held that  the Board  respondent had the statutory authority under Section  49 of the Electricity Supply Act, 1948 (’Act’ for short)  to lay  down the conditions of supply and if any doubt exists Section 18 clause (c) of the Act confers powers on the  Board. It  is against  this judgment of the Division Bench in  all these  petitions which  were disposed  of by a common judgment that these special leave petitions have been filed and therefore these matters are before us.

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    On 21.7.81  the respondent A.P. State Electricity Board issued a notification exercising powers under Sec. 49 of the Act. By this notification the Board unilaterally altered the conditions of  supply for  the  high  tension  consumers  of electricity. Admittedly  these consumers  are the industries which consume  high tension  power. This notification stated that the  industries will  be supplied  the  power  for  the contracted demands  between 1501  KVA to  5000 KVA, at 33 KV whereas industries whose contracted demand is above 5000 KVA shall avail  supply at 132 KV or 220 KV. To comply with this requirement  high   tension  consumers   i.e.  the   present appellants before this Court will either have to replace the existing transformers  and high  tension control gears or to instal transformers  with control  gears to step down supply from the  now proposed  voltage to  the existing voltage and these modifications  have  to  be  made  by  the  industries concerned within  a period of 6 months from the date of this notification. It was further 163 provided that after the lapse of six months if the consumers i.e. appellants have not made arrangements for receiving the supply at  the proposed  voltage  and  continue  to  receive supply at  the voltage  at which  they were receiving on the date of  the notification  they will  have to pay additional surcharge ranging between 2.5% to 13% on their power bills.      It  is   alleged  that   after  this  notification  the appellants and  other similarly  situated consumers  made  a representation to  the Board  and they were told that as the transmission and  transformation losses in respect of supply to these  high tension  consumers is  very much  it has been decided by  the Board  to minimise these transmission losses and it  is for  that purpose  that it  has been  decided  to supply at  high voltage  as  transmission  of  high  voltage current results in lesser losses of transmission and by this process energy  which is  lost in  the transmission  will be saved and  it was for this purpose that this policy has been adopted by  the Board. According to the appellants consumers their grievance  was that for the purpose of receiving power at a  high voltage  they  will  have  to  instal  their  own transformers which  would involve  heavy capital investments and for  supply of power at high voltage even the Board will have to  lay new  lines of  supply and all this would not be economical as  compared to the contemplated loss of power on account of  transmission but  as Board  did not  accept  the representation, the petitioners filed their petitions before the High  Court and  the learned  Single Judge of the Andhra Pradesh High Court by his judgment dated 24.9.82 allowed the writ petitions  against the  judgment of  the learned Single Judge, in  appeal before  the Division Bench the judgment of the learned  Single Judge  was set  aside and  the  Division Bench took  the view  that Sec.  49 of  the Act coupled with Sec. 18(c)  of the  same Act empowered the electricity board to unilaterally alter the terms and conditions of supply and it is against this judgment of the Division Bench that these appeals  are   before  us.   Before  this  notification  the electricity was  being supplied to high tension consumers at 11000 Voltes or 33000 Voltes. By this notification they were expected to  receive supply  at higher  voltage specified in the notification.      The main  contention advanced  before the High Court in the writ  petitions was that it was not open to the Board to direct the existing consumers to take the supply at a higher voltage then  the  voltage  at  which  they  were  receiving supplies or to impose an additional charge on the supply.      It was contended before us that in view of Sec. 26 read

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with 164 clause 6 of the schedule to the Indian Electricity Act, 1910 it is not open to the Board to unilaterally impose supply at a higher  voltage. According  to the  learned counsel  as  a particular customer  has requisitioned  supply of power at a particular voltage  and Board  had agreed  to do, it was not permissible now  to alter the conditions. On the contrary on behalf of  the Board  it  was  contended  that  Sec.  26  of Electricity Supply  Act no  doubt puts  an obligation on the Board to  supply  power  as  were  the  obligations  of  the licensee under  the 1910  Act and  also  the  provisions  of Clause 6  of the Schedule will apply to the Board but it was contended that it has not been provided anywhere in Clause 6 that it is the choice of the consumer to require supply at a particular voltage. It was also contended that clause 6 sub- clause 5  provides the requisition to be in the form and the prescribed form  does not  indicate that  it is  open to the consumer to require the supply at any particular voltage. It was also  contended that  in fact  Sec. 26  itself talks  of subject to the provisions of this Act and Sec. 49 of the Act confers power  on the  Board to  lay down  the conditions of supply. It  was also  contended on  behalf of the respondent Board that  the Board chose to switch over to supply of high voltage in  order to  minimise the  transmission  losses  as according to them if the electricity is transmitted at 33000 volts instead  of 11000  volts the transmission loss will be reduced to  1/19th and if the supply is further increased to 132 KV  the transmission  loss will  be further  reduced  to 1/44th with the result that the transmission losses could be reduced to  99.3%. It  was also  contended on  behalf of the petitioners that  in case of some industries the question of transmission losses  is not  substantial as some of them are situated just  near the  supply station and even if there is some loss  it is negligible as compared to the heavy cost of installation which  will have  to be  put up. An attempt was also made  to suggest  that when  the distance is very short the transmission  loss will  be very  low but one fact to be kept in  consideration which was lost sight of at some stage that transmission  loss is  not only related to the distance that the  power travels  but also  the quantum of power that travels. Admittedly  all these petitioners are consumers who are consuming  huge quantities  of power  which  is  clearly indicated from  the bills, charts of which were filed by the petitioners themselves  before this  Court  indicating  that their yearly  power bills which run into crores and it is in this context  that the  question of  transmission loss  will have to be considered.      The main  controversy which  was before  the High Court was as  to whether the Board has power unilaterally to alter the conditions  of supply.  On behalf  of the petitioners it was contended  that Sec. 49 only confers powers on the Board to revise the tariffs periodically and it was 165 contended  that   a  little   before  the  present  disputed notification was  issued the  tariffs were  revised and that revision of  tariffs  was  done  keeping  in  view  all  the relevant consideration  including all losses in transmission and  transformation  and  therefore  immediately  after  the revision of  the tariffs  there was no occasion for exercise of power under Sec. 49 by issuing the impugned notification. It was  contended that  Sec. 26  read with  clause 6  of the Schedule is  an obligation  on the Board to supply the power as requested by the consumer. Sec. 26 reads:           "26. Board  to  have  powers  and  obligations  of

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         licensee under  Act 9  of  1910.  Subject  to  the           provisions  of  this  Act,  the  Board  shall,  in           respect of  the whole  State, have  all the powers           and obligations  of a  licensee under  the  Indian           Electricity Act,  1910 (9  of 1910)  and this  Act           shall be deemed to be the licence of the Board for           the purposes of that Act:           Provided that  nothing in  Sections 3  to 11, sub-           sections (2) and (3) of Section 21 and Section 22,           sub-section (2)  of Section  22-A and  Sections 23           and 27 of that Act or in Clause I to V, Clause VII           and Clauses  IX to XII of the Schedule to that Act           relating  to  the  duties  and  obligations  of  a           licensee shall apply to the Board:           (Provided further that the provisions of Clause VI           of the  Schedule to  that Act  shall apply  to the           Board  in   respect  of   that  area   only  where           distribution mains have been laid by the Board and           the supply  of energy  through  any  of  them  has           commenced. )"      It is  clear from  a perusal of this provision that the obligation under  Sec. 26  is subject  to the  provisions of this Act.  Clause 6  pertaining to requisition for supply to owner  and   occupiers  of   the  electricity  provides  for conditions under  which a  licensee will  be bound to supply and sub-clause  5 of clause 6 of the Schedule under 1910 Act requires the  requisition to be in a form prescribed and the form prescribed  does not indicate that the consumer is free to ask for the supply at a particular voltage only.      On  behalf   of  the   petitioners  it  was  vehemently contended that  Sec. 49  confers powers on the Board only to revise the tariffs and it has not conferred any power on the Board to alter unilaterally the supply 166 at a  particular voltage.  The main  contention on behalf of the petitioner  was that Sec. 49 only empowered the Board to fix  uniform  tariffs  and  in  support  of  the  contention reliance  was  placed  on  the  case  of  Maharashtra  State Electricity Board  v. Kalyan  Borough Municipality  &  Anr., [1968] 3  SCR 137  and Bisra  Stone Lime Company Ltd. & Anr. Etc. v.  Orissa State Electricity Board & Anr., [1976] 2 SCR 307. In these cases no doubt Sec. 49 has been considered but the only  question in  these cases  was pertaining to tariff and there  was no  occasion to consider the scope of Sec. 49 Clause I  which empowers the Board to lay down conditions of supply.      Sec. 49 reads:           "49. Provision  for the sale or electricity by the           Board to persons other than licensees. (1) Subject           to the  provisions of this Act and of regulations,           if any,  made in this behalf, the Board may supply           electricity to  any person  not being  a  licensee           upon such terms and conditions as the Board thinks           fit and  may for the purposes of such supply frame           uniform tariffs.           (2) In fixing the uniform tariffs, the Board shall           have  regard  to  all  or  any  of  the  following           factors, namely:           (a)  the nature of the supply and the purposes for                which it is required;           (b)  the co-ordinated  development of  the  supply                and distribution  of electricity  within  the                State in  the most  efficient and  economical                manner, with  particular  reference  to  such                development in  areas not  for the time being

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              served or adequately served by the licensee;           (c)   the simplification  and  standardisation  of                methods  and   rates  of   charges  for  such                supplies;           (d)   the extension  and cheapening of supplies of                electricity to sparsely developed areas.           (3) Nothing  in the  foregoing provisions  of this           section shall  derogate  from  the  power  of  the           Board, if  it considers  it necessary or expedient           to  fix   different  tariffs  for  the  supply  of           electricity to  any person  not being  a licensee,           having 167           regard to  the geographical  position of any area,           the nature  of the  supply and  purpose for  which           supply is required and any other relevant factors.           (4) In  fixing the tariff and terms and conditions           for the supply of electricity, the Board shall not           show undue preference to any person." Sub-clause 1 of this Section clearly provides that the Board could lay down conditions of supply and for purposes of such supply it  may also  frame uniform  tariffs.  Sub-section  1 therefore clearly  authorises the  Board  to  lay  down  the conditions of  supply and  have to  fix uniform  tariffs  is provided for  in sub-clause  2. If  there is  any doubt sub- clause 4  makes it  clear that  in exercise  of powers under this Section  Board could  fix the  conditions of supply and also fix  the tariffs  and it  was  therefore  contended  on behalf of  the respondent  Board that  although the Division Bench referred  to Sec.  18(c) still  the Board  has  enough power under  Sec. 49  itself to  lay down  the conditions of supply.  This   question  about  the  conditions  of  supply specifically came  up before  this  Court  in  the  case  of Jagadamba Paper  Industries (Pvt.) Ltd. Etc. Etc. v. Haryana State Electricity Board & Ors. Etc., [1984] 1 SCR 165 and it was observed at page 172:           "We are  of the  view  that  the  Board  has  been           conferred statutory  power under  S. 49(1)  of the           Act to  determine the  conditions on  the basis of           which supply  is to  be made.  This Court in Bisra           Stone Lime  Company Ltd.  & Anr.  etc.  v.  Orissa           State Electricity  Board &  Anr., [1976] 2 SCR 307           took the  view that enhancement of rates by way of           surcharge was  well within  the power of the Board           to fix  or revise  the rates  of tariff  under the           provisions of  the Act. What applied to the tariff           would equally  apply to the security, that being a           condition in  the contract  of supply. Each of the           petitioning  consumers   had  agreed   to  furnish           security in  cash for  payment of  energy bills at           the time  of entering into their respective supply           agreements. There  was no  challenge in these writ           petitions that  the demand of security at the time           of entering  into  supply  agreements  has  to  be           struck down as being without jurisdiction. Section           49(1) of  the Act clearly indicates that the Board           may supply  electricity to  any person  upon  such           terms and  conditions as  the Board thinks fit. In           exercise of  this power  the Board  had  initially           introduced the condition regarding security and 168           each of the petitioners had accepted the term."      It is  not disputed  that although  under the  original agreement the electricity Board was bound to supply power at a particular  voltage but  after the lapse of that agreement

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by lapse  of time  subsequent agreement  provided the clause where the  right has been reserved by the Board to alter the conditions of  supply and  that is  why the  only contention advanced by  the petitioners  was that  under  Sec.  49  the respondent Board  had no  authority  unilaterally  to  alter conditions of  supply and as discussed above this contention cannot be accepted.      The Division  Bench relied  on provisions  contained in Sec. 18 sub-clause (c) which reads:           "to exercise  such  control  in  relation  to  the           generation,  distribution   and   utilisation   of           electricity within the State as is provided for by           or under this Act. "      It is  no doubt  true that  under these  provisions the Board  exercises   control  in   relation   to   generation, distribution and  utilisation of electricity and the learned Judges of  the Division  Bench felt  that although  specific power is not there under Sec. 18(c) but it is wide enough to authorise the Board to alter the conditions of supply. It is no doubt  true that  Sec. 18(c)  confers power of control on the Board  but  as  indicated  above,  in  our  opinion  the specific power  under Sec.  49  clause  I  is  clear  enough wherein Board has been authorised to lay down the conditions of supply.      On the  merits of  the contention various controversies were raised  in respect  of the calculations and mathematics of calculating  the transmission  loss. An  attempt was also made on  behalf of  petitioners to  suggest that  the way of calculations suggested  by the  respondent  Board  does  not appear to  be correct  but it is not disputed and it can not be  disputed   that  where   power   travels   through   the transmission lines there is always some loss of power. It is also a  fact which  could not be disputed that loss of power will be  related  to  the-quantum  of  power  which  travels through the transmission line and the distance through which power has  to travel.  It is  also a fact which could not be disputed that  if power  is transmitted  at high voltage the loss during  transmission is  less as  compared to  the loss when the  power is  transmitted at a low voltage and in view of these  accepted scientific  facts it is not necessary for us to  go into  the calculations and mathematical part of it to find out 169 as to  whether the  calculations submitted  by the  Board is correct or  those suggested on behalf of the petitioners are correct. The  fact remains that lower the voltage higher the transmission loss, higher the voltage lower the transmission loss and it is also not in dispute that these appellants are high  tension  consumers  consuming  substantial  power  and therefore when power travels through transmission lines even for short  distances it  is not  smaller quantities of power but heavy  quantities of  power is  transmitted and  in this view of  the matter  it could  not be  said that  the policy decision taken  by the  Board to  supply these  high tension consumers power  at high  voltage so  that transmission loss and transformation  loss should  be minimised  could not  be said to be any wrong decision or a decision not supported by scientific reasoning.      It was  also contended  that 6 months’ time granted was too short  in view  of the  fact that  these consumers  were expected  to   instal  transformers   and  equipments  which ordinarily are  not easily  available in  this  country  and which  involved   high  capital   investment.  It  was  also suggested that  even the  respondent Board has not been able to lay lines for supply at high voltage as during the course

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of this  litigation most  of the appellants have accepted to receive the  supply at the high voltage and therefore it was contended that  the enhanced  rate for supply at low voltage which was brought into force immediately after six months of the issue  of this  notification is not only justified as it was termed  by learned  counsel for  the petitioners  to  be penal but  it was  contended that it is not reasonable as in spite of  the fact  that the petitioners accepted to receive supply at  high voltage and some of them have even installed the transformers  and other  equipments but  still Board was not in  a position  to lay supply lines for the high voltage supply of  power and  on this  basis  in  substance  it  was vigorously contended  that this  enhanced rate should not be made chargeable  from the  date immediately after the expiry of six months after the issue of this notification.      In one of the case i.e. A.P. Paper Mills which has been specifically alleged  that inspite  of  the  fact  that  the petitioner has  installed a  transformer but  the respondent Board could  not lay  down  the  lines  as  there  was  some injunction issued against the Board when the work for laying the lines  started still  although the  Board is  not  in  a position to  supply the  power at  high  voltage  still  the appellant is  compelled to  pay the higher rate as he is not receiving  power  at  the  high  voltage  indicated  in  the notification. 170      So far  these  aspects  of  the  matter  are  concerned admittedly they  were not  before the High Court. Originally what was  challenged in  the High Court was the power of the Board to  unilaterally alter  the conditions of supply. This question about  from what  date the  higher rates  should be charged and  as to  whether grant  of  six  months  time  to complete the  preparation for  receiving  the  supply  at  a higher voltage is reasonable or not were not before the High Court (Single  Judge) nor  before the  Division Bench and in fact, tacts  in respect  of each  petitioner on the basis of which these  questions could  be  considered  are  also  not before us  although an  attempt has been made by some of the appellants by  additional affidavits  and documents to place it before  us. But  it is not sufficient nor it is proper to decide these questions. After all the respondent Board is an authority under  a Statute and if the appellants are able to satisfy the  authority that  the time  of six  months in the context of  the circumstances  when  this  notification  was issued was  not reasonable  it  is  open  to  the  Board  to consider from  what date  to enforce  the enhanced rates for supply at  lower voltage  taking into  consideration all the cases  and   also  keeping  in  view  the  circumstances  in connection with  installation of transformers and laying the lines which  have come  during the course of these hearings. It is  also open  to the  Board that in the special facts of any  particular   case  to   provide  a  separate  date  for enforcement of  the higher rate. But all these questions can not be decided in the scope of the present appeals.       It  was also  contended  by  the  appellants  that  by altering this  condition of  supply the appellants will have to undergo huge capital investment burden. On the other hand on behalf of the Board it was contended that if the bills of supply of  power of  these appellants  are looked at it will indicate that  what  they  are  supposed  to  spend  on  the installation in  stepping down  power is not so heavy and it was contended  that ultimately  if this  is not  done by the Board the loss incurred on account of transmission has to be borne not  only by  these consumers  who  are  substantially responsible for  the transmission loss but by those also who

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are not at all responsible for heavy transmission losses.       An  attempt was  made to  suggest that  when power  is supplied to  the rural  consumers mainly  agriculturists and small consumers  the  power  has  to  be  supplied  at  long distance and  that is also to be supplied at low voltage and therefore it  was contended  that in  fact the long distance supply to  smaller consumers  is really  responsible for the loss  during  transmission  for  which  these  high  tension consumers i.e. the present appellants are being penalised as they are  being called upon to pay at a higher rate but this argument suffers from a fallacy. As indi- 171 cated above  transmission loss no doubt is on account of low voltage when  it travels  long distance  as it is related to distance- but  the quantum  of loss  also is proportional to the quantum  of power  that travels through the transmission lines and  it could not be disputed that the power that- has to travel  to meet  the requirements  of small  agricultural consumers is  negligible as compared to the quantum of power that is  supplied  to  these  high  tension  consumers,  the present appellants  and therefore  there is  no substance in the contention  that the  loss incurred  in  supply  to  the smaller  consumers  is  being  recovered  from  the  present appellants, the high tension consumers.      It was  also contended  that under  Sec. 18(A)(1)  read alongwith Sec.  18(A)(2) of  the Act,  it is the duty of the Board  to  establish  and  maintain  sub-stations  and  main transmission lines  and it  is not  open  to  the  Board  to transfer this  responsibility to  the consumers by requiring them to make their own arrangements to step down electricity after taking it at a high voltage. Section 2 sub-clause 7 of the Act  defines the  main transmission lines but ll this in sub-clause 7 of Section 2 refers to is about transmission of electricity from  a generating station to another generating station or to a sub-station. Apparently it refers to all the lines and  equipments required  to  be  installed  from  the generating  station   to   the   distributing   sub-station. Apparently both  being that  of the  Board itself  it has to maintain it and on this basis it could not be contended that if the  consumer has  to receive power at a high voltage and if he  wants to  utilise it  at a  low voltage it is not his responsibility to  instal equipments  for stepping  down the power from high voltage to low voltage.      It was also contended that Sections 28 and 29 read with Sections 18  and 18A  of the  Act indicate  that  where  any scheme as  contemplated under  Sections 28  and 29  is to be formulated  the  procedure  prescribed  therein  had  to  be followed and  it was  suggested that  as the  policy of  the Board to  change over  of supply  of power at a high voltage involves heavy  expenditure it will fall within the scope of Sections 28  and 29  and therefore  it  could  not  be  done without  following   the  procedure   indicated   in   these provisions. A perusal of these sections 28 and 29 of the Act indicates that  it is altogether a different function rather than what  is being  done by  the Board  in exercise  of the powers  under   Section  49  clause  1  and  therefore  this contention that  the procedure  indicated in Sections 28 and 29 has to be followed, is of no substance.      In the  light of  discussions above  therefore, in  our opinion, there 172 is no  substance in  these appeals. But as indicated earlier as regards the imposition of the higher tariff on failure to receive  the   supply  at   the  voltage  indicated  in  the notification from  the date specified therein or not will be

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open to  the Board  for consideration  and the  parties  may approach the  Board and  it will be open to the Board in the facts and  circumstances  of  each  case  not  to  levy  the surcharge indicated  in the notification during a particular period  and   in  so   doing  the   Board  will   take  into consideration the facts and circumstances of each particular case.  The   appeals  are   therefore  dismissed.   In   the circumstances of  the case,  parties are  directed  to  bear their own costs. H.S.K.                               Appeals dismissed. 173