U.P.S.E.B. AND ANR versus SANT KABIR SAHAKARI KATAI MILLS LTD.

Citation: [2005] SUPP. 3 S.C.R. 293 · Decided: 19-09-2005 · Supreme Court of India · Bench: ARIJIT PASAYAT · Disposal: Disposed off
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Judgment (excerpt)

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U.P.S.E.B. AND ANR. 
A 
v. 
SANT KABIR SAHAKARI KATA! MILLS LTD. 
SEPTEMBER 19, 2005 
[ARIJIT PASAYAT AND H.K. SEMA, JJ.] 
B 
Cooperative Society-Dispute with State Electricity-Board Held: 
Formation of Committee by State Chief Secretary for resolution of the dispute 
was not required as Cooperative Society could not be equated with Public C 
Sector Undertaking-Ratio of Oil and Natural Gas Commission and Anr. v. 
Collector of Central Excise, [1992} Supp 2 SCC 432, found inapplicable. 
Constitution of1ndia, 1950-Article 12-State Electricity Board may be 
a 'State' but it is not a State Government department-Section 80 of the Code 
of Civil Procedure, 1908 is a pointer in that regard 
D 
Respondent is a co-operative society registered under Uttar Pradesh 
Co-operative Societies Act, 1965. During pendency of certain disputes 
regarding rate of payment for power supplied by appellant, a State 
Electricity Board, the High Court held that respondent was a public sector 
undertaking, and since it as well as the appellant were 'State' within E 
Article 12 of the Constitution, a committee should be formed by State Chief 
Secretary to resolve the dispute, on the lines indicated in Oil and Natural 
Gas Commission and Anr. v. Collector of Central Excise, (1992) Supp 2 SCC 
432. Aggrieved by this order, appellant filed the present appeal contending 
that the above decision was not applicable to the facts of the case. 
F 
Disposing of the appeal, the Court 
HELD: I. The High Court's view is clearly untenable. Board cannot 
be equated with State Government. Section 80 of the Code of Civil 
Procedure, 1908 is a pointer in that regard. Co-operative Societies and G 
Public Sector Undertakings are conceptually different. The Board is a 
Public Sector Undertaking and not a State Government department. It 
may be 'State' for the purpose of Article 12 of the Constitution. There 
the similarity ends. Co-operative Societies cannot be, without examination 
of relevant factual aspects, equated with Public Sector Undertakings. The 
293 
II 
294 
SUPREME COURT REPORTS [2005] SUPP. 3 S.C.R. 
A High Court has come to abrupt conclusion that they are Public Sector 
Undertakings without indicating any reason for such conclusion. The High 
Court, therefore, was wrong in applying the ratio of Oil and Natural Gas 
Commission and Anr. v. Collector a/Central Excise, (1992( Supp 2 SCC 432, 
to the facts of the present case. [298-G-H; 299-A-B] 
B 
Oil and Natural Gas Commission and Anr. v. C.C.E., [1992) Supp 2 
SCC 432, Oil and Natural Gas Commission v. C.C.E., [1995( Supp 4 SCC 
541, Oil and Natural Gas Commission v. C.C.E., (2000) 6 SCC 437, Chief 
Conservator of Forest v. Collector, [2003( 3 SCC 472 and Mahanagar 
Telephone Nigam Ltd. v. Chairman, Central Board, Direct Taxes and Anr., 
C (2004] 6 SCC 431 Held inapplicable. 
D 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 7965 of2001. 
From the Judgment and Order dated 21.4.99 of the Allahabad High 
Court in C.M.W.P. No. 5863 of 1999. 
WITH 
C.A. Nos. 7966-7973 and 7990-7991 of 200 I. 
Ranjit Kumar and Pradeep Misra with him for the Appellants. 
E 
B.B. Singh, Ms. Niranjana Singh and Vishwajit Singh for the 
Respondent. 
The Judgment of the Court was delivered by 
ARIJIT PASA YAT, J. These appeals are directed against the judgments 
F rendered by a Division Bench of the Allahabad High Court. The main judgment 
was rendered in Civil Misc. Writ Petition no. 5859 of 1999 which is the 
subject-matter of challenge in Civil Appeal No. 7965 of2001. Following the 
judgment rendered in the said case other writ petitions were disposed of. In 
each of the writ petitions filed before the High Court correctness of the 
G electricity bills raised by the appellant no. 1-Uttar Pradesh State Electricity 
Board (hereinafter referred to as the 'Board') was questioned. The High 
Court by the impugned judgment held that the Board was as authority under 
Article 12 of the Constitution of India, 1950 (in short 'the Constitution') and 
similar was the position so far as the writ petitioners are concerned who 
according to the High Court were Public Sector Undertakings. The High 
H Court held that in cases where the dispute involves the State Government and 
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U.P.S.E.B. v. SANTKABIRSAHAKARIKATAI MILLS LTD. [PASAYAT, J.] 
295 
a Public Sector Undertaking, Committee in the line indicated by this Court A 
in Oil and Natural Gas Commission and Anr. v. Collector of Central Excise, 
[ 1992) Supit 2 SCC 432 for convenience referr
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