IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.M.JOSEPH THURSDAY, THE 23RD OCTOBER 2008 / 1ST KARTHIKA 1930 WP(C).No. 28677 of 2008(L) ---------------------------------------------- PETITIONER(S): ---------------------- M/S. BANNARI AMMAN STEELS (P) LTD., NO.333, NALLEPPALLY VILLAGE, NATTUKAL P.O., CHITTUR TALUK, PALAKKAD DISTRICT, REPRESENTED BY ITS MANAGING DIRECTOR SHRI R. ELANGOVAN. BY ADV. SRI.SHINU J.PILLAI SMT.S.SUJA SMT.SIBY.P.JOSE RESPONDENT(S): -------------------------- 1. THE KERALA STATE ELECTRICITY BOARD, PATTOM PALACE -P.O., THIRUVANANTHAPURAM, REPRESENTED BY ITS SECRETARY. 2. THE SPECIAL OFFICER (REVENUE) KERALA STATE ELECTRICITY BORD, PATTOM PALACE P.O., THIRUVANANTHAPURAM. 3. THE CHIEF ENGINEER, KERALA STATE ELECTRICITY BOARD, PALAKKAD CIRCLE, PALAKKAD. ADV. SRI.P.P.THAJUDEEN, SC, K.S.E.B FOR R1-3 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23/10/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: K. M. JOSEPH, J. -------------------------------------- W.P.C. NO. 28677 OF 2008 L -------------------------------------- Dated this the 23rd October, 2008 JUDGMENT I heard the learned counsel appearing for the petitioner and the learned standing counsel appearing on behalf of the respondent Electricity Board. Petitioner challenges Ext.P7 and seeks a direction restraining the respondents from compelling the petitioner to furnish additional cash deposit. Briefly put, the case of the petitioner is as follows: Petitioner is a Private Limited Company. Petitioner furnished Bank Guarantee issued by the Federal Bank Limited. As per Exts.P3 and P4, the respondents insisted the petitioner to furnish Bank Guarantee from Nationalised Banks for an amount of Rs.57,62,246/=. Petitioner preferred W.P.(C).No.14276/06. By Ext.P5 interim order, this Court directed the respondents to accept the Bank Guarantee executed by the Federal Bank Ltd. pursuant to which, the petitioner furnished additional Bank WPC.28677/08L 2 Guarantee for Rs.57,62,246/= and at present, there is a total security deposit of Rs.85,83,340/=. Now, the petitioner is called upon by Ext.P7 to furnish additional cash security of Rs.10,50,176/=. According to petitioner, Ext.P7 shows that the total security deposit required from the petitioner only amounts to Rs.77,42,540/= and a higher security is available with the respondents in a sum of Rs.85,83,340/=. According to learned counsel for petitioner, Regulation 13(4) of the Kerala Electricity Supply Code, 2005 empowers the respondents to require a consumer having monthly billing, at all times maintain with them an amount equivalent to two months electricity bill as security. According to him, this can be done only in the first quarter of every financial year or when tariff revision is made. He points out that in issuing Ext.P7, this condition is violated. There is no dispute raised by the learned standing counsel regarding this contention. In such circumstances, Ext.P7 is quashed with liberty to invoke Regulation 13(4) of the Kerala WPC.28677/08L 3 Electricity Supply Code, 2005 in accordance with law. The Writ Petition is disposed of as above. Sd/= K. M. JOSEPH, JUDGE kbk. // True Copy // PS to Judge