M/S. Nava Bharat Ferro Alloys Ltd vs Transmission Corpn.Of A.P.Ltd.& Anr

2. The appellant is a public limited company engaged in the manufacture of Ferro Silicon. The industry set up by the appellant is energy intensive in as much as it consumes approximately 10,000 units of electricity for every ton of Ferro Silicon produced. The appellant's case is that the respondent-Electricity Board had initially agreed to supply power to the appellant @ 6 paise per unit but revised the said rate to 11 paise per unit in the year 1975. The revised rate was in the beginning applicable only to four consumers who were similarly situate but the number of such power intensive consumers gradually rose to 84. On 13th December, 1983 the Board revised the general tariff but a separate order applicable to power intensive consumers like the appellant was issued on 29th January, 1984. Aggrieved by the said order which permitted charging of a higher rate of tariff, the appellant and few others filed writ petitions before the High Court of Andhra Pradesh, which were dismissed by a Division Bench of that Court on 3rd April, 1985. During the pendency of the writ petition, however, the High Court had granted an interim order of 3 stay against the collection of the disputed amount in the following terms:

4. It is not in dispute that the above order was modified subsequently in respect of the bills issued from 16th March, 1990 onwards. The appeals, eventually failed and were dismissed by this Court by an order dated 2 nd May, 1991. In I.As. filed by the appellant post- dismissal of the appeals, this Court passed an order on 9th May, 1991 to the effect that the appellants could after paying outstanding 50% of the amount due under the subsisting bank guarantee make representation to the Board for payment of the balance amount in instalments keeping in view the circumstances and the hardships in each individual case. Consequently, the appellants made a representation to the Board praying for grant of installments for payment of the balance amount. While 5 the said request was under consideration, the appellant received a communication dated 14th June, 1991 from the Superintending Engineer pointing out that an amount of Rs.5,57,66,539.18 was recoverable from the appellant for the period April 1984 to August 1987. For the recover of the outstanding amount the Board invoked the bank guarantee furnished to it for a sum of Rs.2,83,53,120.93 thereby leaving a balance of Rs.2,74,13,218.25 due and payable which amount the appellant was requested to arrange. The communication also pointed out that in addition to the above amount arrears of Rs.4,45,63,903.21 for the period from August 1987 to July 1989 were also payable besides additional charges for delayed payments of the said amount which the latter proposed to communicate separately.

8. On behalf of the respondent it was, on the other hand, argued by Mr. C. Kodanda Ram, learned senior counsel, that the High Court was, in the facts and circumstances of the case, right in distinguishing the decisions relied upon by the appellant and declining the relief prayed for before it. It was submitted that the facts situation in which the relief was granted in those cases was different from that of the present case. It was further argued that the additional charges and interest were payable in terms of the TCS which was statutory in character and to which the appellant had agreed to abide by. The amount which the appellant had not paid would have been utilized by it in its commercial ventures to make profits. Non-payment of the dues recoverable from the appellant would, therefore, expose the Board to serious financial prejudice and loss. 9

25. In the result these appeals fail and are hereby dismissed but without any orders as to costs.