TMI Blog1968 (3) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... errupted and adequate supply of energy required by Hind Lamps, but there was no improvement in the supply position. 2. Hind Lamps then applied to the Government of U.P. to grant direct supply of electrical energy from the State Electricity Board. The State Government by order dated December 26, 1961, issued in exercise of the powers conferred by Section 3(2)(e)(ii) of the Indian Electricity Act, 1910 as amended by the Indian Electricity (Uttar Pradesh Sanshodhan) Adhiniyam, 1961, directed the State Electricity Board to supply electrical energy directly to Hind Lamps upon terms and conditions similar to those on which it supplied electrical energy to other customers . In reply to a representation to reconsider the decision, the Government informed the Company that the decision was necessitated in the public interest and there was no justification for revising it . Another representation made by the Company was also turned down and direct supply of electrical energy was commenced by the State Electricity Board to Hind Lamps. 3. A petition moved by the Company in the High Court of Allahabad for a writ of certiorari quashing the order dated December 26, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operty of the Company without payment of compensation, and that in refusing to give an opportunity to the Company to object the rules of natural justice were violated. 5. The Indian Electricity Act 9 of 1910 makes provision by Section 3 for the grant of a licence to supply energy in any specified area and also to lay down or place electric supply lines for transmission of energy. Clause (e) of Sub-section (2) as amended by U.P. Act 30 of 1961, and Sub-section (3) provide : (2)(e) grant of a licence under this Part for any purpose shall not in any way hinder or restrict- (i) the grant of licence to another person within the same area of supply for a like purpose; or (ii) the supply of energy by the State Government or the State Electricity Board within the same area, where the State Government deems such supply necessary in public interest ; (3) Where the supply of energy in. any area by the State Electricity Board is deemed necessary under Sub-clause (ii) of Clause (e) of Sub-section (2), the Board may, subject to any terms and conditions that may be laid down by the State Government, supply energy in that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate against rational classification. A person setting up a grievance of denial of equal treatment by law must establish that between persons similarly circumstanced, some were treated to their prejudice and the differential treatment had no reasonable relation to the object sought to be achieved by the law. In the present case there is no evidence about the rate charged for energy supplied by the State Electricity Board to the Company on December 26, 1961. nor is there any evidence on the record about the rates charged for electrical energy supplied to the consumers by the Company. 8. The plea of discrimination has to be considered from two different points of view-(1) the discrimination between Hind Lamps and the other consumers within the area of supply in respect of which the Company held the licence; and (2) discrimination in the rates of supply charged by the State Electricity Board to the Company and to Hind Lamps. There is no evidence on the record about the operative rates on the date of the impugned order. Again Hind Lamps was a consumer of electrical energy and so were the other consumers within the area of supply in respect of which the Comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, rightly negatived by the High Court. 10. By the amendment made by U.P. Act 30 of 1961 electrical energy may be supplied by the State Government or the State Electricity Board within the same area in respect of which a licence is granted only if the State Government deems such supply necessary in public interest . The High Court observed that the State Government was the sole Judge of the question whether direct supply of energy to Hind Lamps was or was not in the public interest. The test is of a subjective nature, no objective test being contemplated. Thus it is not open to this Court to examine whether it was necessary in the public interest. The subjective opinion of the Government is final in the matter, and the same is not justiciable or subject to judicial scrutiny as to the sufficiency of the grounds on which the State Government has formed its opinion. In other words the Legislature has left it to the sole discretion of the State Government to decide whether a direct supply of energy was in the public interest . 11. We are unable to agree with that view. By Section 3(2)(e) as amended by the U.P. Act 30 of 1961, the Government is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the petition. In the affidavit filed on behalf of the State Electricity Board it was affirmed that Hind Lamps was engaged in the manufacture of electric bulbs, fluorescent tubes etc. and the process required uninterrupted supply; that it was one of the major industries of the State and was the only industry of its kind in the State; that as a result of the defective supply by the Company, the Hind Lamps felt dissatisfied and informed the Government that if the supply position was not improved it would be forced to shift its factory from the State to some other State; that the industry gave employment to a number of people in the State and saved a large amount of foreign exchange and on that account the State Government was keen to give it fair and due protection that it deserved; that the total supply of electricity to the Company was 1700 K.W. and even if the entire supply under the agreement was made available by the Company to Hind Lamps it would fall short of its requirements. It was, therefore, in public interest that direct supply of energy should be made available to Hind Lamps. An affidavit containing similar averments was also filed on behalf of the State of Uttar Prades ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate. By the order granting direct supply of electrical energy ownership of property or right to possession of property was not transferred to the State or to a corporation owned or controlled by the State, and on that limited ground it must be held that Article 31(2) has no application. The Company may, it may be assumed, as a result of direct supply of electrical energy to Hind Lamps, suffer loss; but Article 31(2) does not guarantee protection against that loss. 15. The Company was afforded sufficient opportunity to make its representation before and after the impugned order was passed. Hind Lamps had submitted several representations to the Government of U.P. regarding inadequate and irregular supply of electrical energy. The Company was informed about the complaints made by Hind Lamps. Meetings were held in which certain steps to be taken by the Company to make the supply regular were agreed upon, but they were not carried out, presumably because the Company had not the requisite equipment for that purpose. The Company was asked to supply electrical energy as released in favour of Hind Lamps; it failed to do so. Representations made by the Company, after the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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