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Thursday, November 22, 2012

suit against disconnection for excess loading - Apart from asserting that it was engaged in the business of manufacture of calendars, diaries, stationery items etc. and denying any misuse of electricity or exceeding the sanctioned load, the plaintiff in its reply dated 06.01.1992 had not taken any specific stand with regard to the findings of the inspection dated 14.06.1991. The said reply dated 06.01.1992 does not contain any specific reference to the findings of the inspection regarding installation of machineries which are normally used for manufacture of PVC conduit pipes. To make the discussions complete we would also like to observe in the present case that plaintiff was given an option to remove the excess load failing which it was made clear it will be charged at the higher rate of tariff. We have also found that the bill for Rs.3,38.378.02 for the period 06.06.1991 to February 1992 was prepared and submitted for payment by the plaintiff in accordance with the terms and conditions of supply in force in the DESU and that the said bill was prepared after consideration of the stand taken by the plaintiff in its reply dated 06.01.1992. No infirmity or illegality is disclosed in any of the actions of the defendant infringing any known right of the plaintiff so as to entitle it to a decree of perpetual injunction as prayed for.


                                             NON-REPORTABLE
             IN THE SUPREME COURT OF INDIA
                  CIVIL APPELATE JURISDICTION
                  CIVIL APPEAL No. 8207    of 2012
                  Arising out of SLP (C) No.33409 of 2009)


Shree Om Enterprises Pvt. Ltd.            … Appellant

                                   Versus

BSES Rajdhani Power Ltd.                       … Respondent


                            J  U  D  G  M  E  N T


RANJAN GOGOI, J

1.    Leave granted.

2.    The appellant is aggrieved  by  the  dismissal  of  its  suit  by  the
learned trial court which decree has been affirmed in First appeal  as  well
as by the High Court in Second Appeal.

3.    The plaintiff is a Private Limited Company engaged in the business  of
printing of calendars, diaries, stationery items,  packing  materials  since
the year 1983 in premises located in A-98/3, Okhla  Industrial  Area,  Phase
II, New Delhi. The plaintiff claims  to  be  registered  as  a  small  scale
industrial unit under the Directorate of Industries,  Delhi  Administration.
According to the plaintiff it  is  also  holding/held  a  license  from  the
Municipal Corporation of Delhi for running the unit of  printing  press  and
has been registered under the Press and Registration of Books Act, 1867  and
with the Registrar of Newspapers for India. The  plaintiff  also  claims  to
have been allotted a code No. by the Reserve Bank of India for the  purposes
of import and export of calendars, diaries, booklets, wedding  and  greeting
cards, printing books, posters and other material etc. printed in  its  unit
at the premises described above.

4.    According to the plaintiff it had been issued two separate  electrical
connections bearing No.K 011 1304067 and  K  011  1304075  for  running  the
printing press. The plaintiff received a letter dated  06.11.1991  (Ex.P-14)
from the  Assistant  Engineer,  Delhi  Electric  Supply  Undertaking  (DESU)
stating that an inspection was conducted in the premises  of  the  plaintiff
on 14.06.1991 in respect of electric connection No. K  011  1304067  in  the
course of which the connected load  was  found  to  be  beyond  the  maximum
permissible sanctioned load of 100 KW for Small Industrial  Power  Consumers
(SIP). The same had the effect of placing the plaintiff in the  category  of
large Industrial Power Consumers (LIP). Accordingly,  in  the  letter  dated
06.11.1991 the plaintiff was given an option to remove the excess  load  and
it was further informed that till then the plaintiff would be billed at  the
higher  tariff  applicable  to  LIP  consumers  along  with  surcharge,   as
applicable, under the terms and conditions of supply. By  the  letter  dated
06.11.1991 the plaintiff was also informed that in  the  inspection  carried
out on 14.06.1991, the power factor was found to  be  below  the  prescribed
limit as the shunt capacitor had not been installed or maintained  properly.
Accordingly, the plaintiff was also informed  that  it  was  liable  to  pay
surcharge at the prevailing rate on the total amount of bill.

5.    In the plaint filed it was further stated that the plaintiff, who  had
no knowledge of the aforesaid  inspection,  received  another  letter  dated
03.12.1991 enclosing  a  copy  of  an  Inspection  Report  dated  14.06.1991
(Ex.P.10).  In the said inspection report details  of  the  machinery  found
installed in the premises of the plaintiff for manufacture  of  PVC  conduit
pipes were mentioned.  According to the plaintiff, on 06.01.1992,  a  common
reply to the  letters/notices  dated  06.11.1991  and  03.12.1991  was  sent
claiming that the business of  the  plaintiff  was  printing  of  calendars,
diaries,  stationery  items  and  packing  materials;  that  there  was   no
manufacture of PVC conduit pipes in its premises and further that there  was
no misuse of electricity and excess of load beyond the  sanctioned  load  or
installation of  inadequate  and  improper  capacitor   as  alleged  in  the
notices under reply.  However,  according  to  the  plaintiff,  despite  its
reply dated 06.01.1992 (Ex.P-11) a bill for Rs.3,38.378.02  was received  by
it for the period 06.06.1991 to February, 1992 threatening disconnection  on
failure to make payment of the said bill on or before 06.04.1992.  It is  in
these circumstances that the plaintiff had filed the  suit  in  question  on
06.04.1992  seeking  a  decree  of  perpetual  injunction  restraining   the
defendants from enforcing the disconnection notice  and  from  disconnecting
power supply against Meter No. K 011 1304067 installed in  the  premises  of
the plaintiff at A-98/3, Okhla Industrial Area, Phase II, New Delhi.

6.     The  defendant,  namely,  General  Manager,  DESU  filed  a   written
statement in the case stating that on 14.06.1991 an inspection  was  carried
out in  the  premises  of  the  plaintiff  which  revealed  that  the  total
connected load in the premises was 190 KW which is  far  in  excess  of  the
limit for SIP consumers,  i.e.,  100  KW.  Accordingly,  the  notices  dated
06.11.1991 and 03.12.1991 along with the inspection report dated  14.06.1991
were issued and on consideration of the reply dated 06.01.1992 submitted  by
the plaintiff, the bill for Rs.3,38,378.02 was served and  disconnection  of
electric power to the plaintiff’s premises was  contemplated  in  the  event
the plaintiff failed to pay the bill on or  before  the  due  date.  In  the
written statement filed by  defendants  it  was  categorically  stated  that
machineries for manufacture of PVC conduit pipes  were  found  installed  in
the  premises  of  the  plaintiff  in  the  course  of  inspection  held  on
14.06.1991. It was further stated that such inspection was  carried  out  in
the presence of the representative of the plaintiff – Company.

7.    The parties had gone to trial on the aforesaid pleadings on the  basis
of which several specific issues were framed. The  plaintiff’s  suit  having
been dismissed by  all  the  courts,  the  present  appeal  has  been  filed
contending that the dismissal of the suit, all along, is plainly opposed  to
the materials and evidence on record and  that  such  dismissal,  ex  facie,
discloses errors apparent on the face of the record.

8.    We have heard Shri CS Vaidyanathan, learned  senior  counsel  for  the
appellant and Shri K.Datta, learned counsel for the respondent.

9.    Learned counsel for the appellant has  elaborately  taken  us  through
the pleadings of the parties and the evidence  of  PW  1-  Shri  Gobind  Ram
Bafna and DW 1- Shri S.S. Gupta.  Learned counsel has  submitted  that  from
the evidence of PW 1 it is clear that no inspection was carried out  in  the
premises of the plaintiff on 14.06.1991 as claimed which fact finds  support
from the evidence of DW 1 who had admitted that  he  is  not  aware  of  the
identity and status  of  the  person  who  was  present  on  behalf  of  the
plaintiff at the time of inspection. Learned counsel, by  referring  to  the
certificate issued by the Sales  Tax  Department  (Exh.D-1),  has  submitted
that in terms  of  the  said  certificate  the  plaintiff  was  entitled  to
purchase raw materials for the purpose of manufacture  of,  inter-alia,  PVC
pipes.  The said certificate only entitled the plaintiff to claim  exemption
from sales tax on such purchases and by no means could be understood  to  be
proof of the fact that the plaintiff was actually  manufacturing  PVC  pipes
in its premises.  Learned counsel has also drawn the attention of the  court
to the Balance-sheet and Profit & Loss Account of the  plaintiff  –  Company
enclosed in the Income-tax Return for the year ending 31st  March,  1992  to
show that no where in the  said  documents  there  is  any  mention  of  PVC
conduit pipes which fact would have, in the normal course, found  a  mention
had the plaintiff Company been engaged in the  business  of  manufacture  of
such PVC pipes. Learned counsel has also drawn the attention  of  the  court
to the telegram dated 01.04.1992 (Ex.P-12) issued on its behalf whereby  the
findings recorded in the report of inspection dated 14.06.1991  with  regard
to manufacture of PVC pipes had been categorically denied.

10.   Learned counsel for the respondent, on the other hand,  has  submitted
that the response of the appellant to the  letters/notices  dated  6.11.1991
and 3.12.1991 issued by the competent authority of the DESU  are  absolutely
vague and ambiguous.  Apart from asserting   that  it  was  engaged  in  the
business of manufacture of calendars, diaries,  stationery  items  etc.  and
denying any misuse of electricity  or exceeding  the  sanctioned  load,  the
plaintiff in its reply dated 06.01.1992 had not  taken  any  specific  stand
with regard to the findings of the inspection  dated  14.06.1991.  The  said
reply dated 06.01.1992 does  not  contain  any  specific  reference  to  the
findings of the inspection regarding installation of machineries  which  are
normally used for manufacture of PVC conduit  pipes.   The  stand  taken  on
behalf of the plaintiff in the  telegram  dated  01.04.1992  (Ex.P-12)  was,
therefore, an after thought.  In so far as the oral  evidence  of  PW  1  is
concerned it is submitted  that  the  said  witness  had  been  inconsistent
inasmuch as while denying that any inspection was carried out on  14.06.1991
in his examination-in-chief,  the  said  witness  in  cross-examination  had
admitted that such an inspection had taken place.  In  this  regard  learned
counsel has pointed out that in the evidence  of  DW  1  there  is  a  clear
reference to the fact that  the  representative  of  the  plaintiff,  though
present at the time of  inspection,  had  refused  to  sign  the  inspection
report. Merely because DW 1 was not  aware  of  the  status  of  the  person
representing the plaintiff Company at the time of inspection, will not  cast
any doubt with regard to the holding of the inspection  itself.  Lastly,  it
is submitted that the plaintiff  having  exceeded  the  maximum  permissible
load for SIP consumers was  liable  for  payment  of  surcharge  and  higher
tariff in accordance with the terms and conditions  of  supply  of  electric
power by the DESU. Similarly, the appellant having  failed  to  install  the
requisite capacitor was also liable to pay surcharge as contemplated by  the
said terms and conditions of supply. It is on the  aforesaid  basis  and  in
accordance with the terms  and  conditions  of  supply  that  the  bill  for
Rs.3,38.378.02 for the period 06.06.1991 to February, 1992 was  issued  with
the contemplation that if the same remained unpaid on or before  06.04.1992,
electric supply to the premises of the plaintiff would be disconnected.

11.   We have considered the submissions advanced before us.  We  have  also
perused the pleadings of the parties and the evidence of PW 1 and also DW  1
as well as the several documents brought on  record  including  the  notices
dated 06.11.1991 and 03.12.1991 and the inspection  report  dated  14.6.1991
sent by the defendant  to  the  plaintiff  as  well  as  the  reply  of  the
plaintiff dated 06.12.91 and the telegram dated 01.04.1992 in  this  regard.


On such consideration what we find is that the present  appeal  raises  what
is pre-eminently a question of  fact,  namely,  whether  the  Plaintiff  had
exceeded the sanctioned load as permissible for SIP  consumers  and  whether
the Plaintiff was responsible for low load factor as it  had  not  installed
the requisite capacitor. In a situation  where  three  Courts  have  already
dealt with the aforesaid question and have recorded concurrent  opinions  on
the issue, it would be wholly inappropriate for this Court to  go  into  the
same  unless  an  apparent  perversity  can  be,  ex-facie,  found  in   the
conclusions reached. It is from the aforesaid limited  perspective  that  we
had persuaded ourselves to go into the  matter.  On  such  consideration  we
find that the plaintiff in its reply dated 6.1.1992  submitted  in  response
to the notices issued by the Defendant on 6.11.1991 and 3.12.1991  had  only
asserted that it is engaged in the manufacture  and  printing  of  calendars
etc. and that it had not exceeded the sanctioned load. There is no  positive
stand taken with regard to the findings of the inspection  as  mentioned  in
the report dated 14.06.1991. Neither  any  evidence  had  been  led  by  the
plaintiff to establish that the machinery mentioned in the  inspection  note
to have been found installed in its premises were not so installed  or  that
such machinery was not used or utilized by the plaintiff for manufacture  of
PVC conduit pipes. It was incumbent on the part of the  plaintiff,  who  had
claimed in the suit that the report of inspection was  incorrect,  to  prove
the said facts by means of legally acceptable  evidence.  No  such  evidence
was forthcoming, perhaps, because the plaintiff had taken the stand that  no
inspection at all was carried out.  Though the plaintiff tried to prove  the
said fact i.e. that no inspection took place through PW 1, the  evidence  of
the said witness  on  the  aforesaid  score  is  wholly  inconsistent.   The
reliance placed on the evidence of DW 1 in  this  regard  is  also  somewhat
misplaced in as much as DW 1 had clearly stated that he was a member of  the
joint inspection team which had carried out the inspection on 14.6.1991  and
that the report of inspection prepared was  refused  to  be  signed  by  the
plaintiff’s representative though he was present at the time of  inspection.
The mere inability of the DW 1 to specify  the  status  of  the  plaintiff’s
representative present at the  site  would  not,  in  any  way,  affect  the
credibility of the fact that an inspection was,  infact,  carried  out.   It
has also to be noticed that the specific denial with regard to the  business
of manufacture of PVC conduit pipes in the premises  of  the  plaintiff  had
come  only  in  the  telegram  dated  01.04.1992  sent   by   the   advocate
representing the plaintiff. In the absence of any clear stand to  the  above
effect in the reply of the plaintiff dated 6.12.1991,  the  subsequent  plea
put forth in the telegram dated 01.04.1992  must  be  understood  to  be  an
after thought on the part of the plaintiff and the result of an  attempt  to
improve its case through its counsel.

12.   To make the discussions complete we would also like to observe in  the
present case that plaintiff was given an option to remove  the  excess  load
failing which it was made clear it will be  charged at the  higher  rate  of
tariff.  We have also found that the bill for Rs.3,38.378.02 for the  period
06.06.1991 to February 1992 was prepared and submitted for  payment  by  the
plaintiff in accordance with the terms and conditions of supply in force  in
the DESU and that the said bill was  prepared  after  consideration  of  the
stand taken by the plaintiff in its reply dated 06.01.1992. No infirmity  or
illegality is disclosed in any of the actions of  the  defendant  infringing
any known right of the plaintiff  so  as  to  entitle  it  to  a  decree  of
perpetual injunction as prayed for.

13.   For all the aforesaid reasons we find  no  merit  whatsoever  in  this
appeal. It is  accordingly  dismissed  and  the  judgment  and  order  dated
18.08.2009 of the High Court of Delhi is affirmed.




                                        ................J.
                                        [P.SATHASIVAM]






                                        ................J.
                                        [RANJAN GOGOI]
New Delhi,
November 22,2012


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