1966 (4) TMI 83 - HC - Indian Laws

Summary

Issues Involved:
1. Legality of unilateral rate increase by Godhra Electricity Company Ltd.
2. Validity of the 1951 Government order fixing electricity charges.
3. Applicability of Section 6 of the General Clauses Act, 1897.
4. Interpretation of Section 57 and 57A of the Electricity (Supply) Act, 1948.
5. Impact of the 1956 amendment on the 1951 Government order.

Detailed Analysis:

1. Legality of Unilateral Rate Increase by Godhra Electricity Company Ltd.
The core issue was whether the Godhra Electricity Company Ltd. could unilaterally increase electricity rates beyond what was fixed by the Government in 1951. The Court ruled that the company was not entitled to increase these rates unilaterally so long as the Government order from November 1951 remained in force. The Court emphasized that the order was for an indefinite period and thus binding until altered by a new order following the recommendations of a rating committee.

2. Validity of the 1951 Government Order Fixing Electricity Charges
The plaintiffs argued that the 1951 Government order fixing electricity charges was still in effect. The Court upheld this view, stating that the order continued to have legal effect even after the 1956 amendment to the Electricity (Supply) Act, 1948. The Court noted that the old Section 57 allowed for such orders to remain in force indefinitely unless replaced by a new order based on the recommendations of a rating committee.

3. Applicability of Section 6 of the General Clauses Act, 1897
The Court examined whether Section 6 of the General Clauses Act, 1897, which saves the previous operation of repealed enactments and things done under them, applied to the 1951 Government order. The Court concluded that Section 6 did apply, thereby saving the 1951 order. The Court cited the Supreme Court's interpretation, which held that Section 6 would apply unless the new legislation explicitly or implicitly indicated an intention to destroy the old rights and obligations.

4. Interpretation of Section 57 and 57A of the Electricity (Supply) Act, 1948
Before the 1956 amendment, Section 57 allowed the Government to fix electricity charges based on the recommendations of a rating committee, with no time limit specified for such orders. Post-amendment, Section 57A introduced a time limit of three years for such orders. The Court ruled that the 1956 amendment did not retrospectively apply to the 1951 order, as there was no provision in the new Section 57A to give it retrospective effect. Therefore, the 1951 order remained valid and enforceable.

5. Impact of the 1956 Amendment on the 1951 Government Order
The Court found that the 1956 amendment, which introduced Section 57A with a three-year time limit for Government orders fixing electricity charges, did not affect the 1951 order. The amendment was prospective, applying only to orders made after its enactment on December 30, 1956. The Court rejected the argument that the 1951 order became void due to inconsistency with the new Section 57A, as the old Section 57 had no time limit, and the new Section 57A did not retrospectively apply to the 1951 order.

Conclusion:
The Court dismissed both appeals, affirming that the 1951 Government order fixing electricity charges remained in force and that the Godhra Electricity Company Ltd. could not unilaterally increase rates. The decision emphasizes the applicability of Section 6 of the General Clauses Act to save the operation of the old order and clarifies the prospective nature of the 1956 amendment to the Electricity (Supply) Act, 1948. The Court also granted a certificate for a Letters Patent Appeal, recognizing the public importance of the issue.