TMI Blog2005 (8) TMI 671X X X X Extracts X X X X X X X X Extracts X X X X ..... f supply shall, except in so far as is otherwise provided by the terms and conditions of the licence be entitled, on application, to a supply on the same terms as those on which any other person in the same area is entitled in similar circumstances to a corresponding supply. Electrical undertakings acquire the character of public utilities by reason of their virtually monopolistic position and their profession to serve the public. The State in exercise of its legislative power had a right to compel the licensees to render service efficiently, promptly and impartially to the members of the public, as has been done by enacting Section 22 of the said Act. Even in common law such public utilities having obtained a licence under a statute are under an automatic obligation by reason of the fact that the property of a public utility is dedicated to public service and impressed with public interest to serve the public and any such statutory obligation is in effect and substance a declaration of the common law. Upon the dedication of public utility to public use and in return for the grant to it of a public franchise, the public utility is under a legal obligation to render adequate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of seniority should be maintained in the matter of supply of electrical energy, directed it to release connections to all applicants by 31.3.2004. It also directed payment of interest at the rate of 12% per annum on the amounts deposited by the complainants and awarded compensation of ₹ 10,000/- each to them. Cost of ₹ 2000/- was also directed to be paid. Aggrieved the Board is before us. In these appeals, an additional affidavit has been filed annexing therewith the regulations purported to have been framed under Section 79(j) of the Electricity (Supply) Act, 1948. Mr. Ashwani Kumar, learned senior counsel appearing on behalf of the Board would contend that the National Commission acted illegally and without jurisdiction in passing the impugned judgments and orders without taking into consideration that the Board at the relevant time did not act only in terms of the circulars issued by the State but also acted under the regulations framed under Section 79(j) of the said Act in terms whereof no interest was payable. The learned counsel submitted that this Court should take judicial notice of the fact that the Government of Punjab at one point of time direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wever, where connections cannot be released within the above time schedule, reasons for delay shall be displayed on the Notice Board but individual intimation would also be given, in case of small power, medium supply and large supply applicants, indicating the probable date. Where the connection cannot be released within 2 months of compliance of requisite formalities/ compliance of demand notice then the same with the detailed reasons would be brought to the notice of C.E./ Operation concerned. 2. *** *** *** 3. In view of the time limits specified above, it should be ensured that the demand notices are issued carefully taking all the circumstances viz. availability of the funds, materials and also power position into consideration. The release of connections will also be subject to restrictions imposed due to power shortage and loading conditions of the system etc. The provisions of SMI-26 may be considered as amended above. Clause 24 of the Sales Regulations also specifies the period during which electrical connections are to be granted. Clauses 24.6 and 24.8 read as under: 24.6 Above time frame shall be subject to availability of requisite material particularly p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Electricity (Supply) Act, 1948 confers power upon the Board to make regulations laying down principles governing the supply of electricity by the Board. Although it is doubtful as to whether the Board in exercise of its regulation making power under Section 79(j) can direct that no interest shall be payable at all or limit the rate of interest, it may not be necessary for us to go into the said question in this case as the said regulations are not applicable in the instant case having been brought into force only in 1999 in view of the fact that all the applications had been filed prior to 1999 and demands were raised in 1999. The administrative circulars as thence existed as also the regulations indisputably require supply of electrical energy to the agriculturists within a period of two months from the date of receipt of the amount asked for in terms of the demand notice. It may be true that the note appended thereto provides that the period specified therein shall be subject to availability of requisite material but the same does not absolve the Appellant from performing its statutory duties. In Andhra Pradesh State Road Transport Corporation v. The State Transport Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith banking, financing, insurance, transport, processing, supply of electrical or other energy, board or lodging or both, housing construction, entertainment, amusement or the pureveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service . The Board is a statutory authority. It is a 'State' within the meaning of Article 12 of the Constitution of India. As a State, the Board is expected to discharge its statutory functions within a reasonable time having regard to the fact that it undertakes an important public utility service. Its actions besides being governed by the Electricity (Supply) Act and the regulations framed thereunder, it must also fulfill the test of reasonableness as envisioned under Article 14 of the Constitution of India. What would be a reasonable period for supply of electrical energy to different categories of consumers has been specified in the administrative circulars issued as well as the regulations made by the Board itself. We find from the records that the persons had applied for grant of electrical connection as far back in 1986 and the Board had asked then to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Commission, the primal contention of the Board was that the claimants-Respondents could not have been given a march over others who had filed applications prior to them. The National Commission rightly did not find fault with such contention but secured the presence of the Chief Engineer of the Board only for the purpose of ascertaining as to how soon supply of electrical energy could be ensured to all concerned including the claimants Respondents. Faced with the orders passed by the District Forums and State Commission and having regard to its own stand taken before the National Commission, the Chief Engineer gave an undertaking that all such connections would be given by 31st March, 2004. From the aforementioned conduct of the authorities of the Board, we have no doubt in our mind had the claimants Respondents not knocked the doors of the forum under the Consumer Protection Act, they might not have even obtained electrical connection for years to come. In the premises aforementioned, the Commission, in our opinion, has rightly found that the Board having not made itself ready to supply electrical energy to the agriculturists unjustly enriched itself with the money deposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n to know the law, and he must act within the law. He may, therefore, be guilty of malice in law, although, so far the state of his mind is concerned, he acts ignorantly, and in that sense innocently. Thus malice in its legal sense means malice such as may be assumed from the doing of a wrongful act intentionally but without just cause or excuse, or for want of reasonable or probable cause. In State of A.P. and Others Vs. Goverdhanlal Pitti [(2003) 4 SCC 739], this Court observed: 12. The legal meaning of malice is ill-will or spite towards a party and any indirect or improper motive in taking an action . This is sometimes described as malice in fact . Legal malice or malice in law means something done without lawful excuse . In other words, it is an act done wrongfully and wilfully without reasonable or probable cause, and not necessarily an act done from ill feeling and spite. It is a deliberate act in disregard of the rights of others . (See Words and Phrases Legally Defined, 3rd Edn., London Butterworths, 1989.) 13. Where malice is attributed to the State, it can never be a case of personal ill-will or spite on the part of the State. If at all it is malic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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