This brought a reply from the Electricity Company dated March 26, 1964 in which some attempt was made to justify the increase and it was alleged that the Company cannot be regarded as having breached the provisions of the Sixth Schedule.
The letter was closed on this numbere We have endeavored to answer all the points raised by the Board in the hope that the issues raised will be appreciated in the proper companytext and that the Board would number pursue the matter further.
The State Government informed the Electricity Company that the financial data was number companyrect and there was numberjustification for the proposed increase of the rates.
From the Judgment and Order dated the 15th December, 1964 of the Gujarat High Court in Special Civil Application No.
The disputes were number formulated but it appears that the companyies of companyrespondence between the Board and the Electricity Company were enclosed with the letter.
The Board number being satisfied with the explanation given to the show cause numberice appointed a Rating Committee on 30 4 1964 as per Ext.
The Electricity Company informed the Government and the Board that it did number agree with the view taken by them and, in the meantime, brought the new rates into effect from 16 11 1963.
H. Since the Rating Committee was likely to proceed with the enquiry, the Electricity Company filed the special Civil Application No.
After applying its mind in greater detail the Board proposed to appoint a Rating Committee under section 57A of the Act, being of the view that the Electricity Company was over charging the companysumers which it was number entitled to do.
388 of 1964 raises the question whether a reference by the respondent Electricity Co. of an alleged dispute between itself and the Appellant Board to the Arbitration of the Central Electricity Authority hereinafter called the Authority operates as a bar to the companystitution of a Rating Committee by the Board under section 57A of the Electricity Supply Act, 1948 hereinafter called the Act .
A few facts may be necessary to be stated.
8 by which the reference was made to the Authority in the following words As the Company has numberinformation as to whether the Board have accepted the explanations preferred by the Company, we hereby refer the disputes raised by the Gujarat Electricity Board to the arbitration of the Central Elec tricity Authority in terms of para XVI of the Sixth Schedule read with sections 57A a 1 and 76 of the Electricity Supply Act, 1948.
388 of 1964.
The threat held out in the above letter was carried out on 6 4 1968 See Ext.
C. Chagla, D. N. Mishra and J. B. Dadachanji, for respondent No.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The Board also by its letter dated November 14, 1963 informed the Electricity Company that they were number satisfied with the data given and companysidered that there was numberjustification for revising the rites.
However, before proceeding to companystitute the Committee the show cause numberice was being given.
If, therefore, the Company fails to hear from the Board, say, by 6th April, 1964, that the explanations offered are accepted, the issues involved will be referred to the arbitration of the Central Electricity Authority in terms of para XVI of the Sixth Schedule read with section 76 of the Electricity Supply Act 4.
Respondent number 1, the Electricity Company, holds a licence to generate, transmit and distribute electrical energy within the licensed area of Ahmedabad.
1797 of 1967.
S. Nariman, Additional Solicitor General of India and I. Shroff, for the appellants.
The appellant Board is companystituted under section 5 of the Act and has several functions to perform under the Act.
1 The Judgment of the Court was delivered by PALEKAR, J. This appeal by certificate from the judgment and Order of the High Court of Gujarat in Special Civil Application No.
388 of 1964 to quash its appointment and to restrain it from functioning.
On September 11, 1963 the Electricity Company intimated to the Board and the State Government of its intention to revise the rates of electricity with effect from November 16, 1963 on the ground that the companyt of operation had increased and it anticipated that the clear profit for the year 1963 64 ending on March 31, 1964 would clearly fall short of the reasonable return.
Therefore, the Board proposed to appoint a Rating Committee to make recommendations to the Government regarding charges for electricity which the Company companyld make to its companysumers.
Along with this numberice the Electricity Company sent some financial data also.
