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TMI Blog1969 (2) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... hen Government of Bombay granted a licence under the Indian Electricity Act, 1910 to a concern called Lady Sulochna Chinubhai & Co. authorising it to generate and supply electricity to the consumers in Godhra area. Clause 10 of the licence prescribed the maximum charges that the licensee could levy for the power supplied. The respondent is the successor of the said licensee. After the Electricity (Supply) Act, 1948 (to be hereinafter referred to as the Supply Act) came into force, a rating committee was constituted under s. 57(2) of the Supply Act at the request of the respondent on January 19, 1950. On the recommendation of that committee, the Government fixed with effect from February 1, 1952, the following charges for the power supplied: (i) 0-7-9 pies per unit for the electricity supplied for lights and fans with a minimum of ₹ 3/- per month per installation and (ii) for motive power at 4 annas per unit with a minimum of ₹ 4-8-0 per month per installation. The Supply Act was amended in 1956. The respondent increas the charges for motive power from January 1, 1963 to 35 NP. per unit with a minimum of ₹ 7/- per month for every installation. On June 22., 1963, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on its behalf that the amendments made to the Supply Act in 1956 have substantially altered the scheme as regards levying charges; it is now open to a licensee to alter the charges fixed by the Government unilaterally subject to the conditions prescribed in s. 57(A) and in Sch. VI of the Supply Act. We may mention at this stage that even according to the appellants the charges that may be fixed by the Government now on the basis of the recom- mendation of a rating committee can be unilaterally altered by the licensee after the period fixed in the Government order in accordance with cl. (e) of S. 57(A)(1), expires. In order to decide the point in controversy, we have to take into consideration the relevant provisions of the Supply Act as it stands now and as it stood prior to its amendment in 1956. For the sake of convenience we shall set out side by side the relevant provisions. The Supply Act as it stood before The Supply Act 1956 as amended In 1956 s. 57. Licensee's charges to consu- S. 57. The mers Provisions of the Sixth Schedule and the Seventh Schedule ( 1st column of page-no 840) (1) The Provisions of the Sixth Schedule and the Table ap- pended to the Seventh Schedule s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to the said licensee namely :- (a) the Board or where no Board is constituted under this Act, the State Government- (i) may, if satisfied that the licensee has failed to comply with any of the provisions of the Sixth Schedule, and (ii) shall, when so requested by the licensee in writing constitute a rating committee to examine the licensee's charges for the supply of electricity and (1st column of the page-no 841) years from the date on which such a committee has reported in respect of that licensee, unless the Provincial Government declares that in its opinion circumstances have arisen rendering the orders passed on the recommendation of the previous rating committee unfair to the licensee or airy of his consumers. (b) The rating committee shall after giving the licensee a reasonable opportunity of being heard and after taking into consideration the efficiency of operation and management and the potentialities of his undertaking report to the Provincial Government making recommendations (and giving reasons therefore)regarding the charges for electricity which the licencee may make to any class or classes of consumers so however that the recommendations are not likely to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as may be specified in the order; and the &Msee shall forth with give effect to such order Provided that nothing in this clause shall be deemed to pre- vent a licensee from reducing at any time any charges, so fixed. THE SIXTH SCHEDULE 1.The Licensee shall so adjust his rates for the Sale of electricity by periodical revision that his clear profit in any year shall not as far as possible exceed the amount of reasonable return Provided that the licensee shall not be considered to have failed so to adjust his rates if the clear profit in any year of account has not exceeded the. amount of &be reasonable return by more than thirty per centum of the amount of the reasonable return. II. (1) If the clear profit of a licensee in any year of account is in excess of the amount of reasonable return one- third of such excess. not exceeding 7-1/2 per cent of the amount of reasonable return shall be at the disposal of the undertaking. Of the balance of the excess, one half shall be appropriated to a reserve which shall be called the Tariffs and Dividends Control Reserve and the remaining half, shall either be distributed in the form of a proportionable rebate on the amounts collected from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such order; (e)the charges for the supply of electricity fixed under clause (d)shall be in operation for such period not exceeding three years as the State Government may specify in the order Provided that nothing in this clause shall be deemed to prevent a licensee from reducing at any time any charges so fixed. THE SIXTH SCHEDULE 1. Notwithstanding anything contained in the Indian Electricity Act, 1910 except sub-section (2) of section 9 of 1910, 22A, and the provisions in the licence of a licensee. the licensee shall so adjust his (charges) for the sale of electricity whether by enhancing or reducing them that his clear profit in any year of account shall not, as far as possible, exceed the amount of reasonable return Provided that such (charges) shalt not be enhanced more than once in any year of account : Provided further that the licensee shall not be deemed to have failed so to adjust his (charges) if the clear profit in any year of account has not exceeded the amount of reasonable return by (twenty) per centum of the amount of reasonable return: Provided further that the licensee shall not enhance the (charges) for the supply of,electricity until after the expiry of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1956, the charges fixed by the Govt. under s' 57(2)(c) remained in force unless reduced by the licensee in the meantime till the same were altered by a subsequent order made by the Govt. after getting a fresh recommendation from the rating committee but under the law as it now stands the rate fixed by the Government under s. 57 (A)(1)(d) would be in operation only for such period not exceeding three years as the State Govt. may specify in the order. Thereafter it can be enhanced by the licensee in accordance with the provisions contained in Sch. VI. It was urged on behalf of the appellants that the present s. 57 (A (1) (e) can only govern the charges fixed under s. 57(A)(1)(d) and it has not impact on an order made under the old s. 57(2)(c). According to the appellants the charges so fixed can only be modified by the Government after getting a report from the rating committee. Mr. Chagla, learned Course for the appellants contended that the, consumers who 'get power from the respondent have a vested right in the charges fixed in 1952 and that vested right cannot be considered to have been taken away by the provisions of the Amending Act. He argued that the provisions of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the same is replaced by fresh Statute or Regulation unless the new Statute or Regulation specifically or by necessary implication affects rights created under the old law those rights must be held to continue in force even after the new Statute or Regulation comes into force. But in the cases before us there is no question of affecting any vested right. There is no dispute that the charges fixed can be altered. The controversy relates to the procedure to be adopted in altering them. That controversy does not touch any vested right. The procedure in question must necessarily be regulated by the law in force at the time of the alteration of the charges. Section 57 of the Supply Act as it stands now lays down that the provisions of Sch. VI shall be deemed to be incorporated in the licence of every licensee not being a local authority, in 'the case of a licence granted before the commencement of the Act from the date of the commencement of the licensee's next succeeding year of account. Admittedly the licence with which. we are concerned in these cases was granted even before the Supply Act was enacted. Therefore quite clearly the licence in question is governed by the pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luding the deemed terms permit him to unilaterally alter the charges then he has that right. If we merely look at those terms, as we think we ought to, then there is no dispute that the respondent was within its rights in enhancing the charges as admittedly it has followed the procedure prescribed by law. We also do not agree with Mr. Chagla in his contention that there is no inconsistency between the present scheme relating to the enhancement of charges vis a vis the scheme provided under the Supply Act prior to its amendment in 1956. The two schemes are substantially different.' Under the former scheme once the Government fixes the charges the licensee cannot alter it but at present at the end of the period order the licensee has a unilateral right to accordance with the conditions prescribed fixed in the Government enhance the charges in in the VI Schedule. Therefore in view of s. 57 the provisions contained in that schedule have an over- riding effect. In Amalgamated Electricity 'Co., Ltd. v. N. S. Bhathena and Anr.( [1964] 7 S.C.R. 503) this Court was called upon to consider the scope of s. 57.(A) and the Sch. VI as it stands now. Therein the controversy was whether t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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