IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE THIRTIETH DAY OF JUNE TWO THOUSAND AND NINE PRESENT HON'BLE Mr. JUSTICE R.SUBHASH REDDY WRIT PETITION No.15027 of 2004 Between: M/s. Bhagyalaxmi Boiled Rice Mill Kesamudram, Warangal District rep. by its Managing Partner, E.Nageshwar Rao, S/o. Bikshapathi aged 52 years R/o. Kesamudram, Warangal District. ... PETITIONER AND 1 The Superintending Engineer Northern Power Distribution Co. of A.P. Ltd., Warangal District. 2 The Assistant Divisional Engineer Northern Power Distribution Co. of AP. Ltd., Mahabubabad, Warangal District. 3 The Assistant Accounts Officer G.R.C., Warangal, Warangal District. ...RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court may be pleased to issue a writ, order or direction more particularly one in the nature of writ of mandamus declaring the action of the respondents in seeking to collect an amount of Rs.51,628-80 ps. as low power factor surcharge under Bill dated 1.8.2004 in Lr.No.AAO/GRC/Wgl/JAO (B)/BS-D.No373/03, dated 2.8.2004, issued by the 3rd respondent herein as illegal, arbitrary and violative of principles of natural justice. Counsel for the petitioner: Mr. A. Prabhakar Rao Counsel for respondents: Mr. O. Manohar Reddy (SC FOR APTRANSCO) The Court made the following Order: This writ petition is filed questioning the action of the respondents in seeking to collect an amount of Rs.51,628.80 ps. from the petitioner as low power factor surcharge under bill dated 01-08-2004 in Lr.No.AAO/GRC/wg1/JAO(B)/BS-/D.No.373/03. 2. The petitioner, a rice mill, was provided electric power supply under L.T.-III-B category, vide service connection bearing Nos.5001- 865 and 1726, at a contracted load of 150 H.P. The petitioner was issued bill dated 01-08-2004 in which Rs.51,628.80 ps. was charged towards low power factor surcharge. 3. The only ground on which the impugned demand is assailed is that there was no enquiry and prior opportunity before imposing surcharge on the petitioner. With reference to the said ground, it is to be noticed that supply of power to the petitioner-rice mill is governed by the terms and conditions of supply of electricity framed by the erstwhile Andhra Pradesh State Electricity Board in exercise of powers under Section 49 of the Electricity (Supply) Act, 1948. At this juncture, it is apposite to refer to condition No.23 of the terms and conditions of supply, which reads as under: “The power factor for the month shall be the ratio of KW hours to the Kilo-Volt Amerpere-Hours supplied to the decimal places. The power factor of the consumer’s installation shall not be less than 0.85. If the power factor falls below 0.85 during any month, the consumer shall pay a surcharge of two per cent on the amount of that month’s bill (excluding demand charges and customer charges) for each 0.01 (decimal naught one) fall in the power factor. If the power factor is less than 0.85 continuously for a period of six months, the consumer shall pay surcharge at the rate of three per cent on the bill amounts for the subsequent consecutive months, if any, during which the power factor is below 0.85. Should the power factor drop below 0.75 and so remain for a period 2 consecutive months, it must be brought up within a period of 6 months by methods approved by the Board failing which, without prejudice to right of the Board to collect surcharge and without prejudice to such other rights as have accrued to the Board or any other right of the Board the supply to the consumer may be discontinued.” 4. A reading of the aforesaid condition makes it clear that there is a contractual obligation on the part of the petitioner to maintain the power factor at the ratio of KW hours to the Kilo-Volt Amerpere-Hours supplied to it during the month. Maintenance of power factor largely depends on the usage of capacitors and for want of such capacitors, the power factor falls below 0.85. As much as the very condition empowers the respondents to impose surcharge of two percent on the bill amount, if the power factor falls below 0.85 during any month, excluding demand charges and customer charges, I am of the considered opinion that no separate enquiry need be conducted. 5. In that view of the matter, I do not find any valid ground to declare the action of the respondents in imposing surcharge on the petitioner as illegal. At this stage, it is submitted by the learned counsel for the petitioner that pursuant to the interim order dated 24-08-2004 passed by this court, half of the amount levied on account of low power factor surcharge, under the impugned bill, has already been paid. It is submitted that there is financial stringency to the petitioner and time is sought for payment of the balance amount. In view of the said submission of the learned counsel for the petitioner, two months time, from today, is granted to the petitioner to pay the balance amount on account of power factor surcharge, which is due pursuant to the impugned bill. 6. The writ petition is disposed of accordingly. No order as to costs. _________________________ R. SUBHASH REDDY, J. June 30, 2009 MRR ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1) 2 CD copies Form-NIC-OGS/WP{MPL}