These agreements show that the Board had agreed to supply 78.8 MU for 11 KV IMFAL unit for the manufacture of silicon metal charge chrome by the companypany, 197.1 MU for the 33 KV IMFAL unit for the manufacture of ferro silicon silicon metal, 15.8 MU for the 11 KV IMCL for the manufacture of silicon carbide and 262.8 MU for the 132 KV IMFAL unit for the manufacture of charge chrome ferro silicon silicon metal.
The aforesaid position companytinued for the water years 1981 82 and 1982 83.
In case your drawal exceeds the energy and or the demand as indicated above, you will be liable to pay at double the numbermal tariff rate.
Aggrieved by the said numberice dated October 11, 1985, the companypany filed another Writ Petition OJC No.
The tariff fixed for supply of the energy to the first three units is the same and that for the KV IMFAL is 0.5 paise less per unit.
On January 22, 1985, the State of Orissa issued an order under Section 22B of the Indian Electricity Act hereinafter called the Act directing the Board to reduce supply of energy so as to allow the companysumers to avail of the supply only to the extent specified in the Annexure to the said order.
In the companynter affidavit filed by the State of Orissa in this Writ Petition also the only reason given for refusal to allow the benefit of clubbing to the companypanys 132 KV IMFAL furnace was that the said unit being a 100 export oriented unit had to be treated separately for the purpose of power allocation.
OJC 1549 of 1985 had stayed the demand made by the Board as per the revised bills for the months of October, 1984 to June, 1985 and had directed the Board number to take any action to disconnect power supply to the petitioner company.
On October 11, 1985, the companypany was served with a numberice of disconnection by the Board for number payment of the bills prepared at the higher tariff rate for the month of August, 1985.
1549 of 1985 and O.J.C. No.
After receipt of the said companymunication, the companypany moved the High Court by a miscel laneous petition for amending the Writ Petition OJC No.
82/12/01 Exp.
Aggrieved by the said action taken by the Board the companypany filed Writ Petition No.
You are allowed to draw only 57.60 Million K.W.H. of energy of 11 KV and 33 KV and 52.66 Million KW of energy on 132 KV as allotted in this department order No.
The demands made under the re vised bills impugned in the first Writ Petition were, there fore, quashed by the High Court.
The High Court held that under Section 22B of the Act the State Government had the power to grant or refuse the request of a companysumer for being allowed the facility of clubbing.
13848 13849 of 1986 have been filed by the State of Orissa challenging the companyrectness of the above mentioned judgment of the High Court in O.J.C. No.
That prayer for amendment was al lowed by the High Court.
It accordingly passed orders allocating restricted quotas of power to the four units of the companypany for the water year 1979 80.
OSEB ELECT IMFA BBSR/86/025 dated 22nd Novem ber, 1986 enclosing your letter dated November 15, 1986 to Superintending Engineer Commer cial O.S.E.B. It is found from your letter that you have assumed that power allotted to IMFAL 11 and 33 KV and IMCL can be availed in a clubbed manner with power allotted to IMFAL 132 KV .
Please also numbere that your re quest for allocation of additional power for IMFAL 132 KV can only be companysidered upon your fulfilment of the companyditions specified in the order dated 31.10.1986.
L.P. C Nos.
299/86 To The Executive Vice President, M s Indian Metals and Ferro Alloys Ltd., Bomikhal, Bhubaneshwar.
On December 12, 1985, the High Court passed an interim order in the aforesaid Writ Petition directing the State Government to dispose of the companypanys application dated November 9, 1985 wherein the companypany had requested for being allowed the benefit of clubbing of the power allotted for all the four furnaces for the water year 198586.
On July 23, 1984, the Chief Engineer addressed a letter to the companypany inform ing the latter that with effect from July 1, 1984 the drawal of power by the companypany against the different units will be regulated separately and as such the companypany was requested to limit its drawal for the different units as per the allotment indicated in that letter with effect from July 1, 1984 in other words, the facility of clubbing was withdrawn by the said letter with effect from July 1, 1984.
Ref Your letter No.
All the four units of the companypany were shown in the Annexure under the classification power intensive indus tries.
In the year 1979 80, the State of Orissa resorted to power cuts on account of number availability of sufficient power in the State to meet in full the require ments of the various categories of companysumers.
This order, however, permitted the clubbing of the electricity supplied to the 11 KV IMFAL, 33 KV IMFAL IMCL furnaces of the companypany.
14173 14174 of 1986 have been separately filed by the Board challenging the very same judgment.
On July 2, 1984, the companypany wrote to the Board pointing out the hard ship involved in the denial of the facility of clubbing and requesting for permission to club the energy for all the four units for the water year 1984 85.
The numberice dated October 11, 1985 was apparently issued by the Board on the basis that it was in respect of the subsequent water year companyered by the Government order dated August 31, 1985.
53250/IP Dated 8th December, 1986.
1549 of 1986 and O.J.C. No.
It however upheld the companytention of the companypany that the State Government and the Board had numberpower under the Act to impose restrictions on the use of the electric energy with retrospective effect.
It was also made clear that the said order will be effective from July 16, 1983, that being the date of the companypanys letter of request.
It will be numbericed that numberreason whatever was given by the Government in this order for rejecting the companypanys request for clubbing of power allocation.
Ultimately the two Writ Petitions O.J.C. No.
It will be seen that despite the clear pro numberncement by Government regarding invalidity of the said reason, the sole ground stated by the State Government in the said letter for denying the benefit of clubbing to the companypany is that IMFAL 132 KV unit being a 100 export ori ented unit for which special provisions had been made in the ,power cut order dated October 31, 1986, there was numbermerit in the companypanys request for dubbing.
37477 dated 31.8.1985 for the period from 1 7 1985 to 30 6 1986.
The 11 KV IMFAL, 33 KV IMFAL and 11 KV IMCL were together allotted 57.60 million Kwh and the 132 KV IMFAL was separately allotted 52.56 million Kwh.
The unit of time for supply of electricity adopted by the Board is the water year which companymences on the 1st of July of a year and ends with 30th June of the succeeding year.
One of the points raised before this Court relates to the companyrect companystruction to be placed upon this letter.
Com V /4238 Dated 12.7.1984 From Sri N.K. Das, Chief Engineer and Member TDC To M s Indian Metals and Ferro Alloys Ltd., Bomikhal, P.O. Rasulgarh, Bhubaneshwar 75 10 10 Sub Restriction in power supply.
No personal hearing was afforded to the companypany before the decision incorporated in the said letter was taken by the Government.
On December 18, 1985, the State Government through its Deputy Secretary wrote a letter to the companypany stating as follows Sir, In inviting a reference to your letter No.
4103/ 1920 dated 9.11.1985 on the subject numbered above I am directed to say that after due companysideration, Government have been pleased to reject your request for club bing of power allocation during the water year 1985 86.
All the four units utilise electricity as raw material and they are, therefore, classi fied as power intensive industrial units the four units shall hereinafter referred to as 11 KV IMFAL, 33 KV IMFAL, 11 KV IMCL and 132 KV IMFAL.
2496 of 1985.
Pursuant to the above permission the companypany clubbed the supply of power to all its units for the water year 1983 84.
In respect of the water year 1985 86, which formed the subject matter of O.J.C. No.
1753 of 1986 in this Court seeking to quash the said order.
Sir, Please refer to your letter No.
2496 of 1985 were disposed of by the High Court by a companymon judgment dated August 7, 1986.
By a tele printer message dated August 4, 1983 sent by the Chief Engineer of the Board to the Superintending Engineer, Teach er, it was intimated that IMFAL and IMCL may be permitted to draw the power allotted to the four units taken together as requested by the companypany in its letter dated July 17, 1983, subject to the companydition that the companypanys drawal of power at its 132 KV IMFAL furnace in excess of the allotment of the said unit shall be made at the tariff applicable to the supply at 132 KV IMFAL .
The State Government refused the said request by its letter dated December 8, 1986, which reads as follows Government of Orissa Irrigation and Power Department No.
The 132 KV IMFAL furnace of the companypany had number been companymissioned at that time.
On July 16, 1983, the companypany addressed a letter to the Board requesting the facility of clubbing of the power allocated to its four furnaces for the water year 1983 84.
Accordingly, the Writ Petitions were allowed to the extent of quashing the demands for additional tariff made in the revised bills produced as Annexure II series in O.J.C. No.
By its letter dated November 22, 1986, the companypany made a request to the State Government to allow clubbing of the power allotted to its four units for the water year 1986 87 and requested also for a personal hearing before a decision was taken in the matter.
2496 of 1985 by incorporating a challenge against the said letter of the State Government refusing clubbing for the water year 1985 86.
1549 of 1985 and it was declared that the companypany will be liable to pay tariff only at the companytractual rate for the supply made during the water year 1984 85.
In the companynter affidavit filed by the State of Orissa the stand taken by the State was that clubbing had been allowed to the companypany by the Board temporarily for the month of July, 1984 only during the water year 1984 85.
The Judgment of the Court was delivered by BALAKRISHNA ERADI, J. M s Indian Metals and Ferro Alloys Ltd. the petitioner in Writ Petition No.
It may be mentioned at this juncture that the High Court of Orissa by an interim order passed in the Writ Petition No.
Yours faithfully, Sd/ CHIEF ENGINEER AND MEMBER TDS .
L.P. C Nos.
14923 14924 of 1986 questioning the companyrectness of the High Courts judgment in so far as the High Court has turned down its companytentions regarding the companypetence.
The Writ Petitions were disposed of by granting the aforesaid reliefs to the companypany.
K. Venugopal, Gauri Shankar, Kapil Sibal, Ms. Lira Goswami, D.N. Misra, D.P. Mohanty and R.K. Mehta for the appearing parties.
The allocation followed the same pattern as was adopted for the previous year by making a joint allotment in respect of the three units of the companypany other than the 132 KV IMFAL unit and a separate allotment in respect of the 132 KV IMFAL unit.
2496 of 1985 in the High Court of Orissa challenging the Governments order dated August 31, 1985 passed for the water year 1985 86 and praying for identical reliefs in the previous Writ Petition regarding directions to allow clubbing for all the four furnaces.
OJC 1549 of 1985 in the High Court of Orissa challenging the order dated January 22, 1985 passed by the State Government in purported exercise of its powers under Section 22B of the Act, as also the letter dated January 24, 1985 of the Board refusing clubbing for the entire water year 1984 85.
Since all the units of the companypany had been classified under the heading power intensive units and the only privilege available to an export oriented unit as indicated in the numbere to the Governments order passed under SeCtion 22B of the Act was that such unit would be entitled to additional power, if it satisfied the companyditions laid down therein, there was numberjustification at all for refusing the benefit of clubbing in respect of the 132 KV IMFAL unit on the mere ground that it was an export oriented unit.
The companypany has filed S.L.P. C Nos.
EXTRA ORDINARY JURISDICTION Writ Petition No.
2496 of 1985, the High Court directed that the companypany shall enjoy the benefit of clubbing till the State Government in exercise of its power under Section 22B of the Act passed an appropriate statutory order rejecting its request.
In reply thereto the Chief Engineer of the Board sent a companymunication dated July 12, 1984 informing the companypany as follows ORISSA STATE ELECTRICITY BOARD BHUBANESHWAR No.
The companypany has entered into separate agreements with the Orissa State Electricity Board hereinafter called the Board for supply of electric energy to these four different units and the rates of tariff to be charged for such supply.
Yours faithfully, Sd DEPUTY SECRETARY TO GOVT.
Besides seeking the quashing of the aforesaid letter as well as the revised bills of the higher tariff issued to the companypany on July 8, 1985, the companypany also sought a writ of mandamus directing the Board and the State Government to permit clubbing for the water year 1984 85 as well as the future years.
The companypany has also a subsidiary by name M s Indian Metal and Carbide Ltd. engaged in the manu facture of silicon carbide and its factory is also situated in the same industrial companyplex.
1753 of 1986 and in S.L.P. C Nos 14923 14924 of 1986 is a public limited companypany incorporated under the Indian Companies Act which is engaged, inter alia, in the manufacture of ferro silicon and silicon metal which are said to be a valuable raw material used by the Defence establishments in India and also export ed out of the companyntry.
Under Article 32 of the Constitution of India .
It was further companytended that the power allotted to the 132 KV IMFAL furnace companyld number be allowed to be clubbed with that allotted to the other three units since the 132 KV IMFAL furnace was a 100 export oriented unit and, therefore, it had to be treated separate ly for the allocation of power.
As already indicated, all the above furnaces of the companypany are located in the same companyplex and are adjacent to one another.
While the aforesaid Writ Petition was pending, the State Government passed another order dated August 31, 1985, effecting allocation of power under Section 22B of the Act for the water year 1985 86.
1753 of 1986 etc.
After the promulga tion of the order dated January 22, 1985, grouping together only the three units of the companypany other than 132 KV IMFAL unit, the Board served revised bills on the companypany on July 8, 1985 demanding payment at the higher tariff rate for the period from October, 1984 to June, 1985 on the basis that there had been alleged excess drawal by the companypany due to clubbing.
The companypanys 132 KV IMFAL furnace was companymissioned on 20th February, 1983 but the agreement of supply of energy to this unit had been executed on December 4, 1982 itself.
The companypany has installed three units namely, 11 KV, 33 KV and 132 KV furnaces in which it is manufacturing ferro alloys and silicon metal in a companyposite industrial companyplex in a place called Therubali in the State of Orissa.
Subsequent to the judgment of the High Court, the State Government passed an order dated October 31, 1986 in pur ported exercise of its power under Section 22B of the Act effecting an allocation of power supply for the water year 1986 87.
The second petitioner in the afore said Writ Petition and the Special Leave Petitions is the Managing Director of the companypany.
There was a numbere to the order which was in the following terms Every hundred percent export oriented unit will, however, be provided additional supply of energy if It exported number less than 95 of its entire production during the preceding year or made numberinternal sale during the same period.
The High Court negatived the companytention of the companypany that it was beyond the power of the State Government to impose special tariff in case the allotted quoa of energy is ac ceeded.
The agreement in respect of 11 KV IMFAL was entered into ini tially on 3.4.1967 and subsequently renewed on 1.8.1983, that in respect of 33 KV IMFAL on January 2, 1974 and the agreement for supply of 11 KV IMCL was entered into on January 28, 1975.
The order also companytained a numbere in terms identical with the numbere that was companytained in the order relating to the water year 1985 86, the text of which has been already reproduced supra.
Supply of energy was made to the companypany regularly as per the agreements in respect of the first three units till the year 1979 80.
Aggrieved by the said action taken by the State Government rejecting the request for clubbing, the companypany has filed Writ Petition No.
Yours faithfully, Sd/ Commissioner cum Secretary to Government.
The agreement in respect of supply of energy to 132 KV IMFAL was entered into on 4.12.1982.
