IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN FRIDAY, THE 21ST JANUARY 2011 / 1ST MAGHA 1932 WP(C).No. 29305 of 2010(K) -------------------------- PETITIONER(S): --------------- KOODARANHI GRAMA PANCHAYATH REP;BY ITS SECRETARY,KOODARANHI.P.O,KOZHIKODE. BY ADV. SRI.T.G.RAJENDRAN RESPONDENT(S): --------------- 1. STATE OF KERALA,REP;BY THE SECRETARY, LOCAL SELF GOVERNMENT DEPARTMENT,SECRETARIAT, THIRUVANANTHAPURAM. 2. KERALA STATE ELECTRICITY BOARD,REP;BY ITS SECRETARY,VYDYUTHI BHAVAN,PATTOM, THIRUVANANTHAPURAM. 3. THE ASSISTANT ENGINEER,KSEB,ELECTRICAL SECTION,THIRUVAMBADY,KOZHIKODE. 4. THE DEPUTY CHIEF ENGINEER,KSEB, VYDYUTHI BHAVAN,KOZHIKODE. BY ADV. SRI.P.P.THAJUDEEN, SC, K.S.E.B FOR R2-4 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21/01/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.N. RAVINDRAN, J. ------------------------------- W.P.(C) No.29305 of 2010 ------------------------------- Dated this the 21st day of January, 2011 J U D G M E N T The Koodaranhi Grama Panchayat, has filed this writ petition challenging Ext.P5 letter sent by the third respondent to the Secretary of the Panchayat demanding payment of arrears of energy charges to the tune of Rs.74,746/-. The petitioner has also sought a declaration that respondents 2 to 4 cannot levy and demand surcharge from the petitioner. 2. The petitioner Panchayat had commissioned a water supply scheme known as “Pushpagiri Vatholi Drinking Water Scheme” during the year 1997-98 under the People Planning Programme. For the said purpose, electricity connection was taken. It appears later steps were taken to transfer the said project to “Jalanidhi”. Under the scheme, the Panchayat has to pay water charges only in respect of public taps. The Kerala State Electricity Board had by Ext.P1 invoice dated 6.11.2008 demanded payment of Rs.1,40,917/- from the petitioner Panchayat. The petitioner thereupon filed W.P.(C) No.3681 of 2010 in this Court. The said writ petition was disposed of with a direction that power supply shall be restored on the petitioner depositing the sum of Rs.50,000/- and on satisfying all the statutory formalities. This Court also directed that the petitioner shall pay the W.P.(C) No.29305 of 2010 2 balance amount outstanding in three equal monthly instalments, payable on 31.3.2010, 30.4.2010 and 31.5.2010. The Assistant Engineer thereafter issued Ext.P3 letter dated 16.3.2010 calling upon the petitioner to pay a sum of Rs.42109/- on 31.3.2010, Rs.41505/- on 30.4.2010 and Rs.40265/- on 31.5.2010. It appears that the petitioner did not comply with the said direction. Instead, the petitioner remitted only the sum of Rs..30,338/- on 7.4.2010 , another sum of Rs.30,338/- on 30.4.2010 and the sum of Rs.26,338/- on 20.5.2010. Since the petitioner did not pay the amount in full, the Board issued Ext.P5 letter demanding payment of balance sum of Rs.74,746/- consisting of principal and interest. It was at that stage that this writ petition was filed contending that the Panchayat cannot be held liable to pay interest. 3. The learned standing counsel appearing for the Kerala State Electricity Board has filed a statement justifying the action taken by the Board. It is stated that as the petitioner did not pay the energy charges in time and also did not comply with the directions issued by this Court, Ext.P5 letter was sent demanding payment of energy charges together with interest. 4. The learned standing counsel appearing for the Board W.P.(C) No.29305 of 2010 3 however submitted that the amount demanded in Ext.P5 has since been revised, taking into account the payments made by the petitioner Panchayat and that as on 30.7.2010, the amount due from the petitioner was Rs.44,724/-. It is evident from the stand taken by the respondents that the demand in Ext.P5 consists of arrears of energy charges and other statutory dues like interest. The mere fact that the petitioner is a local authority is not a reason to hold that for belated payments, the petitioner is not liable to pay interest. Regulation 23 of the Kerala Electricity Supply Code, 2005 stipulates that in the case of belated payments, penal interest at the rate of 12% per annum based on actual number of days of delay from the due date upto a period of 30 days and thereafter at the rate of 18% per annum for the entire period of default from the due date shall be charged by the Board. In the instant case, the electricity supply was disconnected and later dismantled, since the Panchayat did not pay the energy charges demanded in Ext.P1. Later pursuant to the directions issued by this Court in Ext.P2 judgment, it was restored. The regulations do not contemplate grant of exemption from payment of interest to local bodies. Therefore, the petitioner Panchayat cannot wriggle out of the liability to pay interest for belated payment of W.P.(C) No.29305 of 2010 4 energy charges. 5. Lastly, the learned counsel for the petitioner prayed that an opportunity to pay the sum of Rs.44,724/- stated to be due as on 30.7.2010 in monthly instalments. The learned standing counsel for the Board did not oppose the said request. For the reasons stated above, I hold that there is no merit in the writ petition. The writ petition fails and it is accordingly dismissed. However, if the petitioner remits the sum of Rs.44,724/- along with simple interest thereon at the rate of 18% per annum in three equal monthly instalments, commencing from first of March, 2011, the electricity connection shall not be disconnected or dismantled. P.N. RAVINDRAN, JUDGE. nj.