Karnataka Power ... vs Ashok Iron Works Pvt. Ltd

2. As the principal arguments have been advanced in Civil Appeal No. 1879/2003, we take up the facts of that appeal which are thus, briefly put. M/s Ashok Iron Works Private Limited (for short, `the company') is a Private Limited Company and engaged in the activity of manufacture of iron products. The company applied for the supply of electrical energy (2500 KVA) to the Karnataka Electricity Board (now Karnataka Power Transmission Corporation and hereinafter referred to as `KPTC'). The application made by the Company was cleared by the Single Window agency and supply of electric energy 1500 KVA was sanctioned. The company is said to have deposited an amount of Rs. 8,40,000/- on 1st February, 1991 as per demand. KPTC did not commence supply of electricity as agreed upon and that necessitated the company to approach Karnataka High Court for a direction to KPTC to supply the sanctioned energy. On 16th April, 1992, the High Court directed KPTC to supply electrical energy as per sanction forthwith and subsequently, time for supply of electricity was extended by the High Court upto 21st July, 1992. KPTC raised an additional demand of Rs. 8,38,000/- from the company and further demand in the sum of Rs, 1,34,000/-. The company is said to have deposited the said amount. However, the actual supply of the power 3 commenced in the month of November, 1992. The company accordingly filed a complaint under the Consumer Protection Act, 1986 (for short, `the Act, 1986') before the Consumer Disputes Redressal Forum, Belgaum claiming damages in the sum of Rs. 99,900/- for delay in supply of electricity. The complaint was contested by KPTC, and, inter alia, preliminary objection was raised that complaint was not maintainable as the complainant was engaged in commercial activity and electricity being goods; sale of goods to a commercial consumer for a commercial purpose was outside the scope of the Act, 1986.

4. The company challenged the order of the District Forum in appeal before Karnataka State Consumer Disputes Redressal Commission (for short, `State Commission'). Few other appeals from the common judgment dated 10th September, 1993 also came to be filed before the State Commission. The State 4 Commission vide its order dated June 15, 1995 set aside the order of the District Forum and held that complaints were maintainable being covered by the definition of "Consumer" under the provisions of the Act, 1986.

5. KPTC challenged the order of the State Commission by filing a revision petition before the National Consumer Disputes Redressal Commission (for short, "`National Commission"). It appears that initially revision petition was dismissed in default but later on, on the application of restoration made by KPTC, the revision petition was restored but it was dismissed in view of its decision dated 23rd November, 2001, in the case of M/s Welmelt Steel Cast Pvt. Ltd. v. Karnataka State Electricity Board. It is from this order that appeal 1879/2003 by special leave arises.

25. In what we have discussed above, the complaint made by the company before the District Forum cannot be said to be not maintainable and we hold, as we must, that complaint is maintainable.

27. In view of the discussion already made by us above while dealing with contentions (ii) and (iii) in Civil Appeal No. 1879/2003, 18 it has to be held that the complaint by H.V. Balchandra Rao is covered under Section 2(1)(d)(i)(ii) of the Act, 1986.

28. For the foregoing reasons: