As stated above, the High Court by its judgment and order under appeal, upheld, the validity of sub section 5 of the Act, however, it set aside the numberice of the demand of duty at higher rates.
In these agreements, it was stipulated that the Board would supply electricity at companycessional rates to the companypany.
The Board also demanded duty at higher rates other than the companycessional rates a rate of which the duty was being paid by the companypany.
the said demand of duty was quashed.
1999 2 SCR 465 The Judgment of the Court was delivered by N. KHARE, J. These appeals are directed against the judgment and order dated 17.2.89 of the Kerala High Court in O.P. No.
The State of Kerala after the judgment under appeal was delivered filed a review petition but the same was also rejected.
The said order is also under challenge in Civil Appeal No.
It is in this way the companypany challenged the validity of subsection 5 of Section 49 of the Electricity Supply Act, whereby the electricity supply to the companypany at companycessional rates was rescinded and the companypany was brought under the uniform tariff.
Subsequently, again on 18,9,1965, another agreement was entered into for supply of 12,500 KWs for another period of 25 years from 1,1.1996 with an option for renewal in favour of the companypany for a further period of 25 years.
In the year 1969 the Board in exercise of its power under Section 79 read with Sections 49 and 89 of Electricity Supply Act issued an Order dated 28.11.1969 known as The Kerala State Electricity Board Extra High Tension Tariff Order 1969 fixing the rateoftariff for supply of electricity to Extra High Tension companysumers.
Again, in the year 1963, a fresh agreement was entered into which was to be in force for a period of 25 years from 1.1.1965.
The companypany after having been assured of supply of electricity which is raw material for manufacture of aluminium at companycessional rates decided to set up its factory at Alupuram in the then State of Travaricore.
The said demand was challenged by the Company and ultimately this Court struck down the said demand holding that the Board was number entitled to claim more than the charges specified in the special tariff agreement entered into between the parties, Thereafter, the Government of Kerala issued an ordnance which was subsequently replaced by an Act known as Electricity Supply Amendment Act, 1983, whereby a new sub section 5 was inserted in Section 49 of the Electricity Supply Act.
On the basis of the said Order the Board demanded from the Company High Tension Consumption charges of higher rates fixed by the Tariff Order ignoring the terms of agreement entered into under sub section 3 of Section 49 of the Act.
The agreement of 1941 was subsequently modified by another agreement dated 15.8.1955 and companytinued to be in force when the state of Kerala was formed under the State Reorganisation Act, 1956.
Based on this new provision, the Board issued demands claiming electricity charges at rates numberified for Extra High Tension companysumers prescribed by the Kerala Electricity Board Extra High Tension Tariff Revision Order 1982.
7 of 1983, The High Court has further found that the demand of duty at the rate specified under the Kerala Electricity Duty Act which was in xcess of companycessional duty was invalid.
It was in this companytext that on 30.7.194 an agreement was entered into between the companypany arid the then State of Travaricore for supply of electricity at fixed rate of a period of 35 years w.e.f 17.1941.
2008 of 1990.
The appellant company is engaged in the business of manufacturing aluminium, having its head office at Calcutta.
It was alleged that on the basis of assurance and undertaking given by the erstwhile State of Travancore for supply of regular electricity of cheaper rate, the companypany had set up its aluminium factory at Alupuram, although alumina required for manufacture of aluminium was brought from far off places, like Bihar incurring heavy freight arid other expenses, In the year 1948, the State of Travancore was integrated with the Cochin State and the agreement entered into in the year 1941 was treated as binding.
10002 of 1983, whereby the High Court has held, that the companycessional rates for supply of electricity incorporated in special agreement under Section 49 3 of the Electricity Supply Act, 1948 hereinafter referred to as the Act entered into between the Indian Aluminium Company Ltd. hereinafter referred to as the companypany and the Kerala State Electricity Board hereinafter referred to as the Board was validly rescinded by the statutory amendment incorporating sub section 5 in Section 49 of the Act by the Act Ho.
Consequently,.
