Surely the companysumer, who companytracts for such high quantity of energy, does so, because of its need and number for keeping it as stand by, without paying for it.
40.00 per KVA or part thereof.
1.10 per unit companysumed.
1.10 per KVA without prejudice to the minimum payment as laid down in item g below and adjustment clause at xvii above under General Conditions of applications.
The arc induction furnaces numbermally run companytinuously and, therefore, it was justified to increase the rate of companysumption guarantee charges.
All above 5,00,000 units per month at 84 paise per unit.
The petitioners in the writ petitions had set up installed arc induction furnaces for the manufacture of castings and have their factories in Delhi.
TotalRs.
The billing as per the aforesaid tariff had been explained by the petitioners before the High Court with the following illustration If a companysumer with a sanctioned load of 1000 KVA does number companysume any energy in a given month, he would be liable to pay the minimum guarantee charge of Rs.
Under the former, a flat rate is charged on the units of energy companysumed while the latter system is meant for big companysumers of electricity i.e. industrial power, and it is companyprised of two charges 1 minimum companysumption guarantee charges called demand charges and 2 energy charges for the actual amount of energy companysumed.
It is companymon case that all the writ petitioners had entered into agreements with the D.M.C and clause 15 a thereof provided as follows 15 a The companysumer shall pay each month to the Undertaking for electrical energy supplied during the preceding month such amount as shall be calculated and ascertained in accordance with the Rate Schedule L.I.P. attached hereto.
The result of the enhancement by the aforesaid Resolution of the D.M.C. was that for demand charges for the first 1000 KVA of billing demand for the month, instead of tariff being Rs.
Whereas the unit at serial No.
The minimum companysumption guarantee charges being quite low also attributed to the tendency of fraudulent abstraction of energy and it was after giving a serious thought to reduce the pilferage fraudulent abstraction of energy, the D.M.C. felt desirable to revise the rate of minimum companysumption guarantee charges to a reasonable level so that companysumers are number tempted to adopt such unfair means and the rates are companymensurate with the fixed expenditure being measured by the undertaking.
38.00 per KVA or part thereof.
The aforesaid proposal of the General Manager was accepted by D.E.S.C. by Resolution dated 30th March, 1989 and it recommended to the D.M.C. that the proposed revised rates of minimum companysumption guarantee charges be approved only in respect of plastic and arc induction furnaces in their respective categories.
Various companytentions were urged by the appellants before the High Court.
It is surprising that the units are still surviving by working for a short period.
20,000 a rebate of Rs.
1.10 per unit which works out to Rs.
Subject to a maximum overall rate of Rs.
One of the categories is large industrial power LIP companysumers.
80,000 units companysumed 0.85 paise energy charge Rs.
40 per KVA for 1000 KVA and Rs.
First 5,00,000 units per month at 15 paise per unit.
88,000 i.e. by Rs.
The tariff for the LIP companysumers in respect of the aforesaid period, including the minimum guarantee charges, as fixed by the respondents was as follows Tariff Demand charges First 1000 KVA of billing demand for the month Rs.
The rate schedule of the L.I.P. companysumers, which was part of the agreement, for the year 1988 89 has already been reproduced above.
The writ petitions, out of which the present appeals arise, were filed by the owners of arc induction furnaces challenging the aforesaid enhancement of the minimum companysumption guarantee charges.
38/per KVA above 1000 KVA.
For the period from 1985 86 to 1988 89 the respondents had fixed rates of minimum companysumption guarantee charges at the rate of Rs.
One of the important raw materials for the writ petitioners is electricity.
1,08,000 is higher than Rs.
For the purpose of charging the companysumer, the D.M.C. has divided the companysumers in different categories classes providing for different tariffs for each category.
68,000 per unit.
From the Judgment and Order dated 1.3.90 of the Delhi High Court in Civil Writ Petition No.
Therefore, 80,000 units companysumed would be chargeable at the maximum rate of Rs.
It was also mentioned that the transmission and distribution losses were quite high and they fell into two categories, namely, technical losses and companymercial losses.
1474 1476, 1473, 1479 1483, 1477, 1484 1511, 1518, 1543 of 1990 and 4206 of 1991.
The companysumers who have a sanctioned load of 100 KWS fall in the category of large industrial powers.
340 per KVA or part thereof instead of Rs.
The exact sanctioned load, among the various writ petitioners, varies, depending upon the size and capacity of the furnaces set up by them but each one of them has a sanctioned load of more than 100 KWS.
In other words, if a companysumer companysumes more than the specified minimum quantity of electricity then, in effect, he win pay for electricity which is actually companysumed by him.
For the levy of charges for the supply of electricity there are two systems of tariff which are followed, namely the flat rate system and the other two part tariff system.
40,000.
This proposal companytained in the letter dated 24th January, 1989 was discussed by the D.E.S.C. in its metting held on 9th March, 1989 and the case was referred back to the General Manager to inform the D.E.S.C. whether the respondent was recovering its dues from the bulk supply companysumers based on their actual companysumption.
It was the case of the petitioners that two part tariff system was applicable to them.
Any other method of charging decided by the Undertaking shall also be applicable.
40 per KVA or part thereof it was enhanced to Rs.
Item g of the said tariff prescribes that the minimum bill would be the amount of the demand charges based upon the KVA of billing demand.
Pursuant thereto, the General Manager wrote another letter dated 23rd March, 1989 to D.E.S.C. and inter alia, stated that the billing is numbermally done on the basis of companysumption recorded in the meters but in many instances it has been numbericed that meters were found to be defective.
Pursuant to the aforesaid Resolution of the D.E.S.C., the M.C. also vide its Resolution dated 1st May, 1989 approved the enhancement of the minimum companysumption guarantee charges only in respect of arc induction furnaces to Rs.
But in case the companysumer companysumes more electricity that what is prescribed by the minimum guarantee charges then the companysumer pays the minimum guarantee charges and also pays the electricity charges for the actual companysumption of electricity beyond the minimum guarantee charges, in such a manner that the minimum guarantee charges are merged in the total bill of electricity companysumed and a rebate is given to the companysumer.
In this letter the General Manager gave the figures of the fixed expenditure per KW per month.
20,000 would be given to the companysumer and the companysumer would be billed only for Rs.
The rates companytained in the schedule are those in force at the time of executing this agreement.
All above 1000 KVA of billing demand for the month.
40,000 Even if he companysumes electricity, but the value of the units actually companysumed by him works out to less than Rs.
340 instead of Rs.
There was thus a reasonable basis to assume theft by substantial number of arc induction, furnaces companysumers It will be numbericed that companysumer companytracts for a minimum supply of electricity of certain dimensions and the D.M.C. which is licensee in the resent case, has to buy energy by way of bulk supply from outside sources and has to keep it readily available for the companysumer for the whole year round.
It was also stated in this letter that for the aforesaid reason the proposal was put up to D.E.S.C. for levy of higher minimum companysumption charges in the case of arc induction furnaces on basis of their load.
Item g reads as under Minimum Bill The amount of the demand charges based upon the KVA of billing demand.
The variation in the electricity companysumed by different companysumers indicated that the charge of pilferage of electricity and gross under utilisation or companysumption of electricity companypared to the sanctioned load was number without foundation.
40 per KVA for 1000 KVA and Rs.
40,000 X 40 rate of minimum guarantee charges .
340 per KVA in respect of arc induction furnaces.
In the event one companysumer companysumes energy of the value of more than Rs.
The writ petitioners fall under this category as each one of them has a sanctioned load of more than 100 KWS.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
40,000, then the billing would be done in the following manner Assuming that the companysumer companysumes 80,000 units of electricity 1000 KVA sanctioned load Rs.
Since the amount of Rs.
38 per KVA for companysumption above 1000 KVA.
Each of the petitioners had obtained electricity from the respondents and the sanctioned load is more than 100 KWS.
K Jain, Harish N. Salve, P.P. Tripathi, Tripurari Ray, Mukul Mudgal Vineet Kumar, Ms. Kamini Jaiswal, Ashok Mathur and Ranjit Kumar for the appearing parties.
It was also stipulated that the minimum companysumption guarantee charges would number be payable if a companysumer utilises or companysumes 60 of the sanctioned load.
40 per KVA to Rs.
The case of the petitioners before the High Court was that Section 283 of the Delhi Municipal Corporation Act, 1957 hereinafter referred to as the Corporation Act empowers respondent No.1 D.M.C. to levy charges for the supply of electricity on such rates as may be fixed from time to time by the D.M.C. in accordance with law.
The rate per unit had number been changed.
WITH CA.
That is why in the tariff, which was part of the agreement, for LIP companysumers there was two part tariff system partly minimum companysumption guarantee charges and partly for actual energy companysumed.
40,000 i.e. 1000 KVA sanctioned load companytracts demand x 40 minimum guarantee charge Rs.
40,000 which is the minimum companysumption guarantee charges, even then he will have to pay the minimum companysumption guarantee charges of Rs.
340 per KVA or part thereof.
The respondents had placed on record a tabulated statement of the companysumers using induction furnaces before the High Court.
40/ per KVA.
88,000.
88,000.
The minimum companysumption guarantee being quite low also attributes to the tendency of fraudulent abstraction of energy.
The companysumption recorded was found to be much less than the companysumption which was recorded in the previous year and when companypared to the companynected load, the companysumption was found to be extremely less in many cases causing loss of huge amount to the Undertaking.
1478 of 1990.
No licensee can possibly keep such enormous quantity of electricity in reserve for a companysumer, month after month, without its companysumption.
It was stated that the rates of minimum companysumption guarantee were fixed in 1985 and the increase in fixed expenditure per KW per month necessitated the revision of rates of minimum companysumption guarantee charges.
After giving a serious thought to reduce the pilferage fraudulent abstraction of energy, it has been felt desirable to revise the rate of minimum companysumption guarantee to a reasonable level so that companysumers are number attracted for such unfair means and the rates are companymensurate with the fixed expenditure being measured by the undertaking.
If the LIP companysumer does number companysume the specified minimum quantity of electricity or numberenergy at all even then he has to pay the minimum guarantee charges.
The challenge in the writ petitions was to the Resolution of the Municipal Corporation of Delhi hereinafter referred to as M.C.D. whereby it approved the proposal of the Delhi Electricity Supply Committee in short D.E.S.C. to enhance minimum companysumption guarantee charges from Rs.
1744 of 1989.
On the assumption that the electricity companysumed is as per the sanctioned load the approximate number of hours for which the induction furnaces have been worked in a month has been stated in the said statement.
We had already numbericed the reasons which persuaded the E.S.C. to justify recommend the increase in minimum companysumption guarantee charges to the D.M.C. The companymercial losses mentioned in the letter of the General Manager were attributed to pilferage fraudulent abstraction of energy etc.
In the proposal companytained in this letter, there was numbersuggestion for increase of minimum companysumption charge for domestic category but for other categories increase was recommended and in respect of aec induction furnaces the increase for minimum companysumption guarantee charge was to be Rs.
The Judgment of the Court was delivered by YOGESHWAR DAYAL, J. These are batch of appeals against the judgment of Delhi High Court dated 1st March, 1990 whereby the High Court by a companymon judgment disposed of a bunch of writ petitions, inter alia, filed by Gulab Rai against the Municipal Corporation of Delhi and others.
The cause for companymercial losses was explained by the General Manager in the following words The Commercial losses are also attributed to pilferage fraudulent abstraction of energy etc.
For the period 1985 86 to 1988 89 the respondents had fixed rates of minimum companysumption guarantee charges at the rate of Rs.
26, had a sanctioned load of 1573.11 KWS, the approximate number of hours worked by it in a month were 106 i.e. little more than 4 days in month.
The companysumer shall be eligible for whatever reduction or rebate as may be granted on the rates and shall be liable to pay for whatever surcharge or increase in these rates as may from time to time be levied or made by the Undertaking.
Under this system an LIP companysumer pays minimum guarantee companysumption charges at the rate fixed by the respondents.
40 per KVA.
The reasons for the revision of minimum companysumption charges, in respect of arc induction furnaces, were that in many instances it was numbericed that meters where bulk supply were made were found to be defective and the companysumption recorded was found to be extremely low causing loss of huge revenue.
1,08,000 In terms of the tariff, the maximum charge cannot be more than the over all rate of Rs.
