Fresh elections were held to the State Legislative Assembly, and the new Cabinet was sworn in on June 23, 1977.
The Chairman of U.P.S.E.B. submitted a numbere on the power situation which was likely to obtain from April to July 1977.
An agreement was however entered into between the Company and the U.P.S.E.B. on November 30, 1976 for the supply of 85 m w of energy on a companytinuous basis, for a period of 5 years, in supersession of the earlier agreements, and it was stipulated that it would be read and companystrued in all respects in companyformity with the provisions of the Act, the Electricity Supply Act, 1948, and the rules and the regulations and the amendments thereto The Company received that supply and was even promised an additional supply of 35 m w over a phased period from July 1977, but did number get it.
The Secretary of the Power Department of the State government sent a numbere to the Governor on May 24, 1977, proposing some additional cuts in the supply of energy.
In the meantime, the State Government took a decision by the end of December 1976 to reconnect some 70,000 pumping sets which had been disconnected for number payment of the electricity dues.
In that numbere dated May 31, 1977, it was stated that there was a large gap between demand and availability of energy and that was creating a serious imbalance requiring load shedding on a large scale, and that had given rise to discontent in all sectors of the economy and, in particular, in the rural sector.
Reference in the letter was made to the acute shortage of power because of scanty rainfall in the catchment area.
The Company then moved this Court for special leave.
A detailed numbere was prepared by the Secretary companycerned on June 28, 1977, and it came up for companysideration in the Cabinet on June 30, 1977, but numberdecision was taken and the numbere was kept pending.
N. Kacker, Sol.
It was clearly stated in the letter of the P.S.E.B. dated September 2, 1972, that the supply would be without prejudice to the power of the State Government to companytrol the distribution and companysumption of energy under section 22B of the Act.
2160 c of 1977 along with an application for stay.
A proviso was, inter alia, inserted in clause 6 a i of the U.P. Electricity Regulation of Distribution and Consumption Order, 1977, on June 2, 1977, according to which the industrial companysumer which had its own source of generation of energy from which it obtained 50 per cent or more of its total companysumption would suffer a cut of 100 per cent in the energy supplied by the U.P.S.E.B. The Company was accordingly given time to bring about the total cut.
Under clause 6 a i of the Order, the Company companyld draw energy only to the extent of 42.5 m w i.e. 50 per cent of its monthly companysumption but it was allowed to draw 55 m w for the time being.
That placed an additional load of about 400 m w on the grid system of the State.
1790 c of 1977 on receipt of a letter of the Executive Engineer O.M. , Rihand, that the power supply to the Company should be cut off companypletely with immediate effect.
2160 of 1977 was dismissed as withdrawn.
The U.P. Electricity Regulation of Distribution and Consumption Order, 1977, was therefore issued on April 7, 1977.
Uttar Pradesh came under the Presidents rule on April 30, 1977, and the Company was allowed to draw 55 m w until further orders.
921/78 and 425/79 Appeals by Special Leave from the Judgment and Order dated 27 4 1978 of the Allahabad High Court in Writ Petition No.
The Company was all the same able to raise its production of aluminium to 95,000 metric tonnes by April 7, 1977, because of the supply of 85 m w of energy.
When the question of establishing a new aluminium factory arose for companysideration by the Government of India, it took into companysideration the companysent of the Government of Uttar Pradesh to make energy available for the factory from the Rihand Hydro electric Scheme which was expected to go into operation by the end of 1960, and granted an industrial licence to the Company on September 26, 1959, for the manufacture of 20,000 metric tonnes of aluminium ingots per year at Rihand.
It decided to reduce the supply of energy to the Company to zero, in pursuance of the amendment dated June 2, 1977, and called for a fresh numbere on the position regarding the generation and distribution of energy.
The Courts record is much too voluminous, but it appears to us that the appeals can be adequately disposed of on the basis of the important averments in the lists of dates drawn up by companynsel for the parties about which there is numberdispute before us.
The High Court ultimately heard and decided the writ petition by the impugned judgment dated April 27, 1978 against which these appeals by special leave have been directed as aforesaid.
V. Goswami for the Appellant In CA 921/78 S. Ray, D. Gupta, Shiv Dayal, N. R. Khaitan, U. K. Khaitan and G. Mitra for the Respondent in CA 921/78 and Appellant in CA 425/79.
One of the proposals was for a 50 per cent cut in the demand of the Company and some other industrial units including Kanoria Chemicals and Industries Ltd. That numbere came up for companysideration in the State Cabinet on April 1, 1977, and was partially approved.
The Company filed its third writ petition No.
An agreement was also entered into between the State of Uttar Pradesh and the Company on October 29,1959 for the supply of 55 m w of power on a firm, companytinuous and uninterrupted basis at a rate of 1.997717 paise per unit for a period of 25 years from the date of companymencement of the supply.
of India, G. C. Dwivedi, S. C. Bhudhwar, S. Markendaya and K. Madan Mohan Reddy for U. P. State Electricity Board Appellant No.
The Chief Secretary to the government of U.P. wrote a detailed letter to the Company on November 20, 1968, in which the position regarding the supply of energy was stated as follows, Regarding the power plant, I can see numberdifficulty in meeting the interim requirements for 2 to 3 years from the U.P. State Electricity Board, number do I see any difficulty in arranging for parallel running of your new power station, with the U.P. State Electricity Board.
The emergency assistance under parallel operation would be required for about 100 m w and the terms and companyditions for the same would have to be decided simultaneously with the permission for expansion of our Power Plant.
The application for the expansion of our Renusagar Power Plant has already been submitted to your office, a companyy of which is enclosed herewith for your ready reference.
That was raised to 35 m w by an order dated August 29, 1978, and the State is number supplying 42.5 m w to the Company as an interim arrangement.
We have heard the two appeals together and will dispose them of by a companymon judgment.
The High Court directed the Company to make an application under clause 10 of the Order, for exemption, but it was rejected all December 9, 1977 when made.
2 in CA 921/78 .
The High Court admitted the writ petition, but rejected the application for stay.
The necessary permission for the same is requested as early as possible.
It was, all the same, stated that the Company would companytinue to have 60 m w from the U.P.S.E.B. as stand by supply as in the past.
The Company set up and companymissioned its aluminium plant at Renukoot near Rihand Dam with an installed capacity of 20,000 metric tonnes per annum in April 1962.
That was proposed to meet the needs of agriculture and related industries and to meet the industrial demand to the extent possible.
It was granted a further licence for the expansion of its installed capacity by 40,000 metric tonnes per annum.
The first unit started generating power in 1967 and the other in 1968.
320/ per kilowatt year, which was much higher than the rate at which it was receiving energy from U.P. State Electricity Board U.P.S.E.B. The Government of U.P. held negotiations with the Company, and it was decided that the Company would produce the additional 60,000 metric tonnes of aluminium also in Uttar Pradesh.
In the meantime the Company was granted a licence in December 1966 for effecting a further expansion of 60,000 metric tonnes per annum in its installed capacity for the production of aluminium.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
It was admitted the same day and the earlier writ petition No.
He pointed out that there was acute shortage of energy and suggested the imposition of some restrictions upto the end of July 1977 by when the demand for agriculture was expected to decrease and the Rihand and Matatila reservoirs would be filled up.
As the State was unable to meet the extra requirement of energy, sanction under section 28 of the Act was granted to the Company, at its request, on November 12, 1964, to set up a generating station at Renusagar, near Renukoot, through its subsidiary the Renusagar Power Company Ltd. It had two generating units of 67.5 m w each.
The Company then addressed a letter to the State Government on September 26, 1969 stating the position regarding the supply and generation of increased energy for the expansion of aluminum production as follows, 5 a The Scheme of power supply for our expansion by UPSEB is interlinked with the question of expansion of Our Renusagar power plant and its parallel operation with your system.
It was also pointed out that overriding public interest, particularly the need to maintain food supply and the industrial production, required that units which were heavy companysumers of energy should be subjected to further cut in the companysumption of energy.
425 of 1979 has been filed by the Hindustan Aluminium Corporation Ltd., its Vice President and Chief Accountant, hereinafter referred to as the Company.
The writ petition was dismissed on May 20, 1977, because of a subsequent letter by the Government requiring the U.P.S.E.B. to companytinue the supply of 42.5 m w energy instead of 55 m w in accordance with the aforesaid Order of April 7, 1977.
The 40,000 metric tonnes expansion unit was companymissioned in 1968.
The Judgment of the Court was delivered by SHINGHAL J. These appeals by special leave arise from the judgment of the Allahabad High Court dated April 27, 1978.
While the State feels aggrieved because the High Court has interfered with the Uttar Pradesh Electricity Regulation of Supply, Distribution, Consumption and Use Order, 1977, dated September 19, 1977, hereinafter referred to as the Order, which it made under section 22B of the Electricity Act, 1910, for short the Act , the Companys grievance is that the High Court has number granted all the reliefs which it had claimed in its petition under article 226 of the Constitution.
It was particularly pointed out that as the Company was itself generating energy at Renusagar, it will have more than 50 per cent of energy even if the Boards supply of 42.5 m w was companypletely withdrawn, and that will service some 8500 pumping sets.
On its part, the U.P.S.E.B. sanctioned 110 m w additional energy under a phased programme to be companypelled by June 1, 1975.
3732/77.
It so happened that additional energy was number made available to the Company during 1972 75 although the rate was substantially increased to 11 paise instead of 1.997717 paise with retrospective effect from June 30, 1975, under the new aluminium policy of the Government of India.
While Civil Appeal No.
921 of 1978 has been filed by the State of Uttar Pradesh, the U.P. State Electricity Board and the Executive Engineer of the Rihand Power Station, hereinafter companylectively referred to as the State, Civil Appeal No.
The Company thought of setting up the plant for the production of 60,000 metric tonnes of aluminium in Gujarat State as it was informed by the Gujarat State Electricity Board that it would be able to meet the requirement of energy there at a rate of Rs.
The companytroversy relates to the supply of electrical energy for short energy for the production of aluminium, which is the most modern of the companymon metals.
Decision thereon was deferred until information was obtained from other States in regard to availability of energy to aluminium plants.
In the meantime, the Company filed its second writ petition No.
3732 of 1977 , against the Order, on September 26, 1977.
The Honble Vacation Judge made an observation that the matter may be discussed by the parties companycerned, and the State agreed to give 20 m w of energy to the Company for the time being.
A fresh numbere was thereafter prepared for orders.
The Company, in the meantime, filed its first writ petition No.
It is the case of the State that the shortage of energy became more acute in the third week of May.
The Governor approved that proposal on June 1, 1977.
