PUNJAB STATE ELECTRICITY BOARD LTD. versus ZORA SINGH AND ORS.

Citation: [2005] SUPP. 2 S.C.R. 524 · Decided: 11-08-2005 · Supreme Court of India · Bench: ASHOK BHAN · Disposal: Dismissed
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Judgment (excerpt)

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PUNJAB STATE ELECTRICITY BOARD LTD. 
V. 
ZORA SINGH AND ORS. 
AUGUST, 11, 2005 
[ASHOK BHAN AND S.B. SINHA, JJ.] 
Electricity (supply) Act, 1948-Electricity Supply-Application for-By 
agriculturists-Delay in giving connection despite deposit of security-
Complaint-Direction by Courts below to give connection to applicants 
within a specific period and payment of compensation and interest at the rate 
of 12% p.a.-On appeal, held: Electricity Board is statutorily required to 
give connection to the agriculturists within a specified period-The Board 
being a statutory authority u/A 12 of the Constitution must also fulfil the test 
of reasonableness-Act of the Board amounted to unjust enrichment-Since 
the Board has given connection within the period stipulated by Court below, 
amount to compensation and rate of interest reduced Electricity Act, 1910-
Section 22 and 24-Electricity Ru/es-Constitution of India 1950-Article 
14-Consumer Protection Act, 1986. 
Interpretation of Statutes : 
Statutes requiring public functionary to perform its duty-Nature a/-
Whether directory or mandatory-Held: Generally such statutes are directory 
in nature, but when injustice or inconvenience is caused to those who had 
no control over those exercising the duty, it would be mandatory in nature. 
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Respondent-consumers applied for supply of electric energy. the 
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appellant-Board, despite the respondents having deposited security amount 
and having completed other formalities, did not supply the energy. In the 
complaint of respondents, District Consumer Forum found the Board 
guilty of deficiency in service and directed the Board to give connections 
within specific period and also awarded compensation. The appeal and 
Revision Petition filed by the Board were dismissed by State Consumer 
Commission and National Consumer Commissioner respectively. National 
Commission directed to release the connections to all the applicants by 
a specific date maintaining the seniority list and also directed payment 
of interest @ 12% p.a. and compensation of Rs. 10,000 to each of them. 
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Hence the present appeals. 
524 
PUNJAB STA TE ELECTRICITY BO. LTD. v. ZORA SINGH 
525 
Dismissing the appeals, the Court 
HELD : I. The right of a prospective consumer is meticulously and 
minutely regulated under the Electricity (Supply) Act, 1948 and/or the 
Indian Electricity Act, 1910 and Indian Electricity Rules. The licensee, 
thus, has a statutory liability to supply electrical energy to any prospective 
consumer on the same terms as those on which any other person in the 
same area is entitled in similar circumstances to a corresponding supply. 
Such a statutory obligation on the part of the licensee is also reinforced 
in terms of Clause VI of the Schedule appended to the Act. [528-F-HJ 
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2. The administrative circulars as thence existed as also the regulations 
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indisputably require supply of electrical energy to the agriculturists within 
a period of two months from the date of receipt of the amount asked for 
in terms of the demand notice. It may be true that the note appended 
thereto provides that the period specified therein shall be subject to 
availability of requisite material but the same does not absolve the 
. Appellant from performing its statutory duties. (533-D-EJ 
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3. What would be a reasonable period of supply of electrical energy 
to different categories of consumers has been specified in 
the administrative circulars issued as well as the regulations made by the 
Board itself. Board was not serious to implement its own Circular. 
(535-B-CJ 
4. The Board in terms of the Regulations was obligated to display 
the reasons for delay on the Notice Board. They were also required to 
indicate the probable date of supply therefor. Furthermore, such cases 
were also required to be brought to the notice of Chief Engineer 
(Operation). Compliance of the said statutory requirements had not been 
brought on record. [533-G-H; 534-A-B) 
5. The Board is a statutory authority. It is a 'State' within the 
meaning of Article 12 of the Constitution of India. As a State, the Board 
is expected to discharge its statutory function within a reasonable time 
having regard to the Act that it undertakes an important public utility 
service. Its actions besides being governed by the Electricity (Supply) Act 
and the regulations framed. thereunder, must also fulfil the test of 
reasonableness as envisioned under Article 14 of the Constitution o
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