TMI Blog2014 (2) TMI 1277X X X X Extracts X X X X X X X X Extracts X X X X ..... electricity. One of the appellants is a Steel Re-rolling Mill. In steel industry, when the industry is concerned with making of steel or re-rolling of steel, it requires lot of power and energy, and electricity being one of the important sources of power, the appellant was much dependent on continuous supply of electricity, which had been assured to it by the respondent State. If an assurance was given to the appellants and similarly situated persons that they would be given 100% electricity supply for five years, the respondents can not riggle out of their liability by making a policy to the effect that the benefit by way of incentive would be extended only if the electricity supply was reduced to less than 50% on a particular day. For the aforestated reasons, in our opinion, the respondent-State was not wholly fair when it extended benefit to the appellants only for the period during which electricity supply was reduced to less than 50% on certain days. We, therefore, hold that the benefit extended by the respondent State is not sufficient. The respondent-State ought to have extended the period even for the days when supply of electricity was more than 50% but not 100% a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue the following orders in this context which will have effect from 1-4-1990. 1. Power connection will be given on completion of any project irrespective of whether a general power cut is in force or not. 2. New units commencing industrial production will be exempted from power cut for a period of 5 years from the date of commercial production. 3. Exemption from payment of electricity duty for a period of 5 years from the date of commencement of commercial production will be given to the new units. 4. In future the electricity duty will not be collected from the industries if they are eligible for exemption. 5. Service connection charges will not be levied if no extension is required or if the additional line to be provided is less than 500 meters in length. The aforestated State Government Order had been adopted by the Board by its Order dated 19th June, 1990. 4. By virtue of the aforestated policy declared under the order dated 21st May, 1990, the respondent-State had assured the manufacturing units to be set up in the State of Kerala that electricity connection would be given to the projects which might be set up and they would be exempted from power cut f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er industrial units, the present appellants had filed writ petitions before the High Court of Kerala praying that the benefits which had been assured to them should be given and they should not be constrained to pay tariff at the enhanced rate. 9. Thus, according to the appellants, in fact, they did not get real benefit of the policy because their production was adversely affected whenever there was power cut and the five years period of exemption from power cut was not extended by the Government which was in violation of the promise given to the appellants and other similarly situated new units. 10. All these grievances were ventilated before the High Court by filing different petitions which were ultimately rejected by the High Court by virtue of the impugned order. 11. The learned counsel appearing for the appellants had vehemently submitted that it was unfair on the part of the respondent -State not to adhere to the promise given to the appellants with regard to uninterrupted 100% electricity supply. The appellants had set up their industries in the State of Kerala because of the promise given by the respondent-State that at least for a period of first 5 years from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acturing units like Malabar Cement and the industries set up within the Export Processing Zone. It had been asserted that if the above stated manufacturing units could be given 100% uninterrupted electricity supply, there was no reason for denying the same benefit to the appellants. 16. So as to substantiate the submission with regard to promissory estoppel, the learned counsel had relied upon certain judgments delivered by this Court. 17. On the other hand, the learned counsel appearing for the respondent -State had submitted that the prayers made by the appellants before the High Court were unjust and therefore, their petitions and other petitions, praying for similar relief had rightly been rejected by the impugned order of the High Court. 18. It had been also submitted that Section 22 B of the Indian Electricity Act, 1910 (hereinafter referred to as the Act ) enables the respondent-State to impose control on distribution and consumption of energy. Section 22 B of the Act reads as under: Sector 22B. (1) Power to control the distribution and consumption of energy:- If the State Government is of opinion that it is necessary or expedient so to do, for maintaining the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments delivered in the case of State of Haryana Ors. v. Mahabir Vegetable Oils Pvt. Ltd., [2011 (3) SCC 778] and State of Rajasthan Anr. v. M/s Mahaveer Oil Industries Ors., [1999(4) SCC 357] to substantiate their case to the effect that there could not be any promissory estoppel in such cases. 24. We had heard the learned counsel at length and perused the impugned judgment and the judgments referred to in the course of hearing and the relevant material placed on record of this Court. It is not in dispute that the appellants had set up their new units in the State of Kerala only upon knowing the policy with regard to uninterrupted power supply and that too at the same tariff for a period of 5 years from the date of commercial production. 25. In the instant case, no case had been made out by the respondent- State that the appellants had committed any breach or were not entitled to any of the benefits or concessions which had been offered to them by the respondent-State. In the circumstances, the respondent-State was bound to give the benefits which had been assured to the appellants. 26. Though the respondent-State was bound to supply uninterrupted 100% electricity re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption of electricity for the purpose of maintenance and supply of equitable distribution of energy but in our opinion, provisions of the said section are not much relevant for the reason that in the instant case, the respondent State had given an assurance with regard to uninterrupted supply of electricity and therefore, the respondents ought to have made provision for uninterrupted supply of electricity to the appellants and other similarly situated persons by regulating electricity supply in a proper manner. 31. Framing such policies and doing the needful for its implementation are administrative functions of the respondent-State and therefore, normally this Court would not like to interfere with its policies but looking at the peculiar facts of the case, where an assurance had been given for uninterrupted supply of electricity, one would presume that the respondent-State must have made necessary arrangements to provide 100% uninterrupted supply of electricity for 5 years to the new units. If for any reason it was not possible to supply electricity as assured, the respondent-State ought to have extended the period of 5 years by the period during which assured electricity was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ower and energy, and electricity being one of the important sources of power, the appellant was much dependent on continuous supply of electricity, which had been assured to it by the respondent-State. 35. If an assurance was given to the appellants and similarly situated persons that they would be given 100% electricity supply for five years, the respondents can not riggle out of their liability by making a policy to the effect that the benefit by way of incentive would be extended only if the electricity supply was reduced to less than 50% on a particular day. A steel industry, for example, which cannot function without electricity or power in any other form, would be put to enormous inconvenience and loss if the power supply is not continuous. So as to reactivate or to restart the machines or to start the process afresh, the industry has to spend something more then what it would have spent if the supply or power namely, electricity was uninterrupted. Stoppage of manufacturing process would mean losses under several heads. The labour employed has to be paid even when the employer does not get work from the labour force. Very often, so as to bring a required temperature for th ..... 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