LexaceLexace Ask the AI ›
โš–๏ธ Ask the AI about your situation:๐Ÿš— Car Accident๐Ÿ’ผ Work / Job๐Ÿ  Housing / Eviction๐Ÿ‘ช Family / Divorce๐Ÿ“‹ Contract Dispute๐Ÿ’ฐ Money Owed

PUNJAB STATE ELECTRICITY BOARD AND ORS. versus HARVINDER SINGH

Citation: [2006] 1 S.C.R. 486 · Decided: 19-01-2006 · Supreme Court of India · Bench: ARIJIT PASAYAT · Disposal: Appeal(s) allowed

Open in Lexace · Ask the AI about this case

Judgment (excerpt)

A 
PUNJAB STATE ELECTRICITY BOARD AND ORS. 
V. 
HARVINDER SINGH 
JANUARY 19. 2006 
B 
[ARIJIT PASAYAT AND R.V. RAVEENDRAN, JJ.] 
ELECTRICITY SUPPLY: 
Application for new electric large supply connection-Additional demand 
C by Electricity Board from consumer as per a Circular--Circu/ar applicable 
w.ef a particular date-{.'onsumer had applied for the connection prior to the 
specified date-By clarificatory Circular, the previous Circular made applicable 
also to those whose connections had nut been released on the specified date-
Propriety of the demand-Held: The Circular was applicable also to the 
D applicants making application prior to the specified date--Demand was 
justified. 
Respondent had applied for a new electric large supply connection 
on 10.3.992. He deposited the security amount. Appellant-Board made 
additional demand over and above the already deposited amount on the 
E basis of one time contract demand charges in excess of 60% of the 
connected load, from Large Supply consumers in view of Circular dated 
4.5.1995 and clarificatory Circular dated 6.2.1996. The represent~tion of 
the respondent against the demand was rejected by the authorities of the 
Board. Writ Petition thereagainst was also dismissed by High Court on 
the ground that the earlier Circular did not require the consumers who 
F had applied for new connection prior to 1.4.1995 to pay such charge. Hence 
the present appeal. 
Allowing the appeal, the Court 
HELD: 1. The demand raised cannot be said to be without sanction 
G of law. The Circular dated 4.5.1995 was also applicable to those applicants 
H 
whose applications were made prior to 1.4.1995 and were pending. It 
cannot be conceived that those who had applied for extension would be 
required to pay demand, but not those who were fresh applicants. 
(489-G-H( 
486 
PUNJAB STA TE ELECTRICITY BOARD 1ยท. HARVIN DER SIN GI I [PASA VAT. J] 
487 
2. The clear intention of the appellant-Board as is culled out from a A 
combined reading of the two Circulars is that those applicants whose 
applications were made prior to 1.4.1995 but to whom connections/ 
extensions had not been released before the issue of the Circular dated 
4.5.1995 even though they ap,plied before 1.4.1995 were required to pay 
the amount on the basis of one time contract demand charges in excess of B 
60% of the connected load. (489-E-F] 
ClVIL APPELLATE JURISDICTION: Civil Appeal No. 2398 of2000. 
From the Judgment and Order dated 16.11.1999 of the Punjab and 
Haryana High Court in C.W.P. No. 2829 of 1999. 
H.M. Singh, Anil Hooda, Kaushal Yadav and Ms. Shabha Saifi for the 
Appellants. 
The Judgment of the Court was delivered by 
c 
ARIJIT PASA Y AT, J. Challenge in this appeal is to the judgment of D 
a Division Bench of the Punjab and Haryana High Court holding that the 
demand made by the Punjab State Electricity Board (in short the 'Board') for 
a sum of Rs 2, 17.000/- was impermissible. 
The background facts in a nutshell are as under:-
The respondent applied to the Board for a new electric L.S. (large 
supply) connection on I 0.3.1992 for running an induction furance. He 
desposited a sum of Rs. 2, 01,000/- as security on the same day and his 
application was registered after all the formalities were completed. The Board 
E 
in terms of its Circular CC No. 41/95 dated 4.5.1995 decided to recover one F 
time charge from the Large Supply consumers demanding contract demand 
higher than 60% of the connected load and to charge monthly minimum 
charge on the connected load basis instead of Contract Demand basis. An 
additional demand of Rs. 2, 17,000/- over and above the amount al read 
deposited was made on 12.2.1999 on the basis that the respondent had not 
depositer.l, the requisite amount in terms of the Circular dated 4.5.1995 and G 
clarificatory Circular dated 6.2.1996. The respondent made a representation 
to the authorities saying that there was no liability for liquidating the demand. 
But the authorities of the Board rejected the stand and held that the respondent 
was liable to make the deposit. A writ application was filed before the Punjab 
and Haryana High Court intera/ia raising the following question for H 
488 
SUPREME COURT REPORTS 
[2006] I S.C.R. 
A adjudication of the High Court: 
B 
c 
(i) 
"whether the representation made by petitioner can summarily 
be rejected without affording opportunity of hearing? 
(ii) Whether the releasing of electricity connection will be taken on 
the date when all for

Excerpt shown. Read the full judgment & AI analysis in Lexace.