IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE HARUN-UL-RASHID FRIDAY, THE 20TH FEBRUARY 2009 / 1ST PHALGUNA 1930 WP(C).No. 29469 of 2006(G) ---------------------------------------- PETITIONER(S): ---------------------- K.K.R.MILLS, OKKAL, KALADY, REPRESENTED BY ITS PROPRIETRESS, AMMINI KARUNAN. BY ADVS. MR.J.JULIAN XAVIER MR.FIROZ K.ROBIN RESPONDENT(S): -------------------------- 1. KERALA STATE ELECTRICITY BOARD, REPRESENTED BY ITS SECRETARY, VYDYUTHI BHAVAN, PATTOM, THIRUVANANTHAPURAM. 2. CHIEF ENGINEER (COMMERCIAL & TARIFF), KERALA STATE ELECTRICITY BOARD, VYDYUTHI BHAVANAM, PATTOM, THIRUVANANTHAPURAM. 3. SPECIAL OFFICER (REVENUE), KERALA STATE ELECTRICITY BOARD, VYDYUTHI BHAVANAM, PATTOM, THIRUVANANTHAPURAM. 4. ASSISTANT EXECUTIVE ENGINEER, KSEB, ELECTRICAL MAJOR SECTION, PERUMBAVOOR. ADV. MR.JOSE J.MATHEIKEL, SC, KSEB FOR R1 TO R4 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 20/02/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) NO.29469/2006 APPENDIX PETITIONERS EXHIBITS P1:- COPY OF THE GOVT. ORDER G.O.(MS) 71/90/ID DT. 21.5.90. P2:- COPY OF THE GO.(MS) 4/92PD DT. 6.2.92. P2:- CO, ORDER NO.G.O.(MS) 26/99 DT. 26.10.99. P4:- COP LETTER CUM STATEMENT ISSUED BY THE 3RD RESPONDENT 20.12.03. P5:- COPY OF THE ORDER DT. 4.4.06 ISSUED BY THE 2ND RESPONDENT. P6:- COPY OF THE JUDGMENT DT. 22.5.06 IN WA. NO.859/06 . P7:- COPY OF THE REPRESENTATION DT. 24.5.06 FILED BY THE PETITIONER BEFORE THE IST RESPONDENT. P8:- COPY OF THE ORDER DT. 7.10.06 PASSED BY THE IST RESPONDENT. P9:- COPY OF THE ARREAR BILL DT. 27.10.06 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER. P10:- COPY OF THE ORDER DT. 11.7.05 IN SPECIAL LEAVE TO APPEAL CC. NO.5768/05. TRUE COPY P.S. TO JUDGE TSS HARUN-UL-RASHID,J. --------------------------- W.P.(C).NO.29469 OF 2006 ---------------------------- DATED THIS THE 20TH DAY OF FEBRUARY, 2009 JUDGMENT Petitioner is a Small Scale Industrial Unit engaged in the processing of rice and other related products. Petitioner filed W.P. (C).No.11561/2006 challenging the order passed by the K.S.E. Board declining to grant extension of the pre-1992 tariff for the 30% power cut period in the light of Exts.P1 and P2 Government Orders. The issue was considered by this Court in W.A.No.859/2006 filed against the order in W.P.(C). No.11561/2006. This Court held that the point raised in these cases was already covered by the decision of this Court in K.R. Alloys Ltd. v. State of Kerala (2005 (2) KLT 177) and hence, no further question remains to be considered. This Court examined the contention of the petitioner/appellant regarding the rate of interest payable by him and the learned counsel for the appellant -2- W.P.(C).No.29469/2006 submitted that the rate levied by the K.S.E. Board is excessive and the same may be reduced in tune with the decision of K.R.Alloy's case. Ext.P6 is the judgment of this Court in the sai writ appeal. This Court directed the appellant to submit a representation to the Board within two weeks for payment of the balance amount as well as for reduction of rate of interest in the event of which the Board will consider the same and pass appropriate orders within one month. The Board considered Ext.P7 representation filed by the petitioner and passed Ext.P8 order declining the request of the petitioner stating that the request cannot be acceded to and the consumer is liable to remit the arrears due to the Board with surcharge at the rate of 24% upto the date of remittance of arrears. Ext.P9 is the demand issued based on Ext.P8 order. Learned counsel for the petitioner brought to this Court's notice the decision of this Court in Abdul Nazer v. K.S.E.B. (2006 (1) KLT 811). This Court in Ext.P6 judgment upheld the order passed by the Government as equitable whereby a concessional tariff was extended to the -3- W.P.(C).No.29469/2006 petitioners and others who have suffered for more than 50% pur cut period. This Court finds no illegality in the said order passed by the State Government which was upheld by the Board. At the same time this Court noticed that the imposition of interest at the rate of 24% is on the higher side. This Court held that it would be just and proper, if the rate of interest is reduced to 12%. The decision of this Court in K.R. Alloy's case applies to the case of the petitioner. In such circumstances, the stand taken by the Board that the petitioner should pay 24% interest cannot stand. The Board ought to have reduced the interest from 24% to 12% as directed by this Court in K.R. Alloy's case, which was referred to in Ext.P6 judgment. 2. In the circumstances, Ext.P8 order declining to grant reduction in interest rate and Ext.P9 demand are quashed. It is submitted by the petitioner that he has paid some amounts towards interest during the pendency of this writ petition as per the interim order. The 3rd respondent is directed to re-calculate the amount due to the Board with interest at the rate specified -4- W.P.(C).No.29469/2006 above and pass appropriate orders within a period of one month from the date of receipt of a copy of this judgment. The learned Standing Counsel for the K.S.E. Board submitted that the decision in K.R.Alloy's case was challenged in appeal before the Supreme Court and the Special Leave Petition No.13142/2007 is pending consideration before the Apex Court. The fixation of the rate of interest at 12% for the time being is subject to the final decision of the Supreme Court in the appeal filed before it. It is made clear that the petitioner shall pay the difference in the amount towards interest subject to the decision of the Apex Court in the appeal. The learned counsel for the petitioner submitted that he has paid 12% interest as per the interim order. The 3rd respondent shall re-calculate the amount if any, due after taking into account the remittances. Writ Petition s disposed of as above. HARUN-UL-RASHID, Judge. kcv. -5- W.P.(C).No.29469/2006