M/S Umesh Industrial Enterprises (P) Ltd. Kala Amb, Tehsil Nahan, District Sirmour, H.P.
… Complainant.
Versus
The HP State Electricity Board, through its Secretary, Vidyut Bhawan, Shimla.
…Opposite Party.
Coram
Shri Pritam Singh (District Judge) President.
Ms. Vanita Singh, Member (Female)
…………………………………………………………………………
For the complainant: Mr. D.R. Sharma, Advocate.
For the Opposite Party: Mr. V.K. Chaudhary, Advocate.
O R D E R
Pritam Singh (District Judge) President:- This order shall dispose of complaint filed under section 12 of the Consumer Protection Act, 1986. It is alleged that the complainant is a company registered under the companies Act and this complaint has been filed by its Director Shri Brijesh Kohli. That the complainant-company was earlier sanctioned electricity load of 310.23 KW which was later on reduced to 176 KW keeping in view the operational need of the factory. That prior to May 2000 the OP-Board had categorized the industries under three categories viz small scale industry, medium industry and large scale industry for the purpose of charging energy consumption. That in April, 2000 the categorization was revised and small industry and medium industry were clubbed together for the purpose of charging of energy under category LS-II whereas, large scale industries were categorized as LS-I. It is further alleged that the industrial concern of the complainant was required to be categorized under category LS-II for the purpose of electricity consumption charges, but the OP-Board instead categorized it under category LS-II and started charging energy consumption charges at the rate of Rs.250/- per KW instead of Rs.105/- per KW as applicable to LS-II category. As such, complainant-industrial concern was compelled to pay additional charges of Rs.3,05,390/- from June 2000 to January, 2002 to OP-Board and despite repeated representation the OP-Board did not place the complainant-industrial concern in category LS-II for the purpose of electricity tariff. Hence, feeling dissatisfied and aggrieved by the act of the OP-Board, the complainant perforce filed this complaint against the OP-Board.
2. The complaint is resisted by OP-Board who while filing reply took some preliminary objections regarding maintainability of the complaint and jurisdiction of the Forum to try this complaint. On merits, they alleged that the complainant-industrial concern was manufacturing utensils of stainless steel for which it was having rolling and re-rolling mill and as such electricity tariff was rightly charged from complainant-industrial concern under category LS-I. Thus, there being no deficiency in service, the complaint is sought to be dismissed. Thereafter the parties led evidence in support of their plea/counter plea.
3. We have heard the learned counsel for the parties at length and have also thoroughly scanned the entire record of the complaint.
4. It may be stated that undisputedly the complainant-industrial concern being medium industry was manufacturing utensils of stainless steel and earlier the OP-Board had sanctioned electricity load of 310.23 KW for operating factory, which was later on reduced to 176 KW. It is alleged that in the month of April, 2000, the category of the industry was revised by the OP-Board and the small scale industry and medium industry were clubbed together for charging energy consumption under category LS-II, and large scale industries were categorized under LS-I. That the complainant-industrial concern was required to be kept under category LS-II for the purpose of charging energy consumption, but the OP-Board instead placed the complainant-industrial concern in the category of LS-I, and charged energy at the rate of Rs.250/- per KW, instead of Rs.105/- per KW, thereby the complainant-industrial concern was compelled to pay additional sum of Rs.3,05,390/- from June 2000 to January, 2002.. It is also specifically alleged by the complainant-concern that M/S Him Ispat Ltd. Kandrodi having electricity consumer account bearing No.1K-194 having rolling mill was categorized by the OP-Board under category LS-II and the tariff was charged under LS-II category from it, whereas this company is having electricity sanctioned load more-than the sanctioned load of the complainant-industrial concern.
5. However, according to the OP-HPSEB, the complainant-concern being mini steel mill is manufacturing utensils of stainless steel and is falling in the category LS-I under large industrial power supply for mini steel mills/steel rolling and re-rolling mills for the purpose of charging tariff. As such, the energy consumption charges were required to be charged from the complainant-concern under category LS-I and not under category LS-II. They have also placed on record the Notification Annexure R-1 dated 20.04.2000 in this behalf and alleged that the complainant-concern has been rightly charged the energy consumption under category LS-I for disputed period.
6. But, it may be stated that the industrial concern manufacturing stainless utensils cannot be kept in category of company which are mini steel mills and steel rolling and re-rolling mills and the ordinary meaning assigned to still and iron cannot be assigned to stainless steel. On this point we are supported by case law authority as reported in 1983 U.P.T.C.-807, in case Commissioner of Sales Tax, U.P. Lucknow versus M/S Industrial Mill Store, decided on 04.01.1980, relied upon by the learned counsel for the complainant. No counter authority is cited on behalf of the OP-Board. As the complainant-industrial concern is neither mini steel mill nor steel rolling and re-rolling mill, as it is manufacturing utensils of stainless steel. As such, it cannot be placed in the category of company having mini steel mills or steel rolling or steel re-rolling mill. Resultantly, the energy consumption charges could not be charged from the complainant-industrial concern under category LS-I.
7. Moreover, it is specifically alleged by the complainant-industrial concern in para No.4 of complaint that M/S Him Ispat Ltd. Kandrodi Nurpur (Kangra) is rolling mill, but it has been kept by the OP-Board in the category of LS-II and the energy consumption charges are also being charged under category LS-II. Whereas, the complainant-industrial concern which is manufacturing utensils of stainless still has been illegally categorized under the category LS-I and the tariff for energy consumption has been charged under category LS-I. In reply to this para, the OP-Board in corresponding para 4 of the reply has alleged that as far as tariff for M/S Him Ispat Limited Kandrodi is concerned, the same is different consumer and case of that concern is totally different and cannot be compared with the case of the complainant-industrial concern. But, it may be stated that nothing has been brought on record by the OP-Board in support of their this plea that M/S Him Ispat Ltd. Kandrodi is a different consumer and the case of that concern is totally different and it cannot be compared with the case of the complainant-concern, whereas, the sanctioned energy load of this concern, i.e. M/S Him Ispat Ltd. Kandrodi is undisputedly higher than the sanctioned energy load of 176 KW of complainant-industrial concern. Moreover, undisputedly the complainant-industrial concern was earlier medium scale industry and that small scale industry and medium scale industry were clubbed together. Therefore, the energy consumption charges were required to be charged under category LS-II from the complainant-concern, and not under LS-I category. But, the complainant-industrial concern was placed in category LS-I and tariff for energy consumption was charged illegally under category LS-I because it is not having mini steel mills/steel -rolling and re-rolling mills. Hence, tariff prescribed vide Notification Annexure R-1 under category LS-I is not applicable to complainant-industrial concern.
8. As regards the plea of the OP-Board that the complainant-industrial concern is commercial concern and it does not fall under the definition of the consumer under Consumer Protection Act, 1986 and the complaint is not maintainable, it may be stated that the word ‘consumer’ has been defined in The Electricity Act, 2003 which means that;
“consumer” means any person who is supplied with electricity for his own use by a licensee or the Government or by any other person engaged in the business of supplying electricity to the public under this Act or any other law for the time being in force and includes any person whose premises are for the time being connected for the purpose of receiving electricity with the works of a licensee, the Government or such other person, as the case may be;
Similarly, the word ‘distribution system’ under this Act has been defined which means;
“distribution system” means the system of wires and associated facilities between the delivery points on the transmission lines or the generating station connection and the point of connection to the installation of the consumers;
The ‘person’ has also been defined in The Electricity Act which includes:-
“person” shall include any company or body corporate or association or body of individuals, whether incorporated or not, or artificial juridical person;
Again word ‘Premises’ have also been defined in The Electricity Act, 2003 which includes:-
any land, building or structure;
The word ‘Supply’ has also been defined in the Act ibid which includes:-
“supply”, in relation to electricity, means the sale of electricity to a licensee or consumer;
9. It may be stated that according to complainant-industrial concern, it is a private partnership firm and all its partners are running this industrial concern for earning their livelihood. Therefore, the complainant-industrial concern falls in the category of consumer as defined in The Electricity Act, 2003. Moreover, the complainant-industrial concern is running medium scale industry manufacturing utensils of stainless steel. Hence, its electricity connection cannot be disconnected on the ground that it is not a ‘consumer’ and is using the electricity for commercial purpose. If the person/industrial concern is using the electricity for running its industry, he is definitely consumer for the purpose of Consumer Protection Act, 1986. On this point we are supported by the case law authority as reported in II (1992) 819 CPJ Haryana State Consumer Disputes Redressal Commission, Chandigarh in case Sub Divisional Officer, HPSEB versus Sita Ram, decided on 12.06.19992, as relied upon by the learned counsel for the complainant-industrial concern. No counter authority has been cited on behalf of the OP-Board. Therefore, we do not find any substance in the plea of the OP-Board that the complainant-industrial concern is not a consumer as it is commercial concern and the complaint is not maintainable.
10. For the foregoing reason, and discussion, we are constrained to hold that the complainant-industrial concern was wrongly categorized under category LS-I by OP-Board and tariff for energy consumption has been wrongly charged from the complainant-concern under category LS-I for the disputed period. As such, the excess energy consumption charges amounting to Rs.3,05,390/- charged from the complainant-industrial concern for disputed period by illegally categorizing it under category LS-I are liable to be refunded to complainant-industrial concern.
11. As a sequel of the above, we allow this complaint thereby directing the OP-Board to refund Rs.3,05,390/- to the complainant-industrial concern alongwith interest at the rate of 9% per annum from the date of filing of the complaint, which happens to be filed on 09.10.2002, till making full payment of aforesaid amount. In addition to this, the OP-Board shall also pay Rs.3,000/- as costs of litigation to the complainant-industrial concern. This order shall be complied with by the OP-Board within a period of forty five days after the date of receipt of copy of this order. The learned counsel for the parties have undertaken to collect the certified copy of this order from the office, free of cost, as per procedure and rules. The file after due completion, be consigned to record room.
12. Announced on this the 29th day of April, 2009 at Shimla as the complaint being time bound and is required to be disposed of before 30.04.2009 as per the direction of the Hon’ble HP State Consumer Commission.


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