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1979 (2) TMI 201

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..... 955 the Government of Andhra Pradesh purporting to act in exercise of its power under Section 3 of the Essential Articles Control and Requisitioning (Temporary Powers) Act, enhanced the rates of supply of electrical energy over and above the contracted rates. Several persons, including the appellants in the two appeals, filed Writ Petitions in the High Court of Andhra Pradesh, challenging the validity of G.O. No. 187 dated 30th January, 1955. Pending disposal of the Writ Petitions they obtained stay of collection of enhanced charges. The Writ Petitions were finally allowed by Satyanarayana Raju, J., on 22nd February, 1957, and G.O. No. 187 dated 30th January, 1955 was struck down. The Government of Andhra Pradesh preferred appeals under cla .....

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..... was expressly told that if his contentions were eventually rejected by the Supreme Court he would have to pay the amount of arrears with surcharge thereon calculated at two per cent per rupee per month. Two per cent was mistakenly mentioned for one per cent. Though the appellants and others were thus expressly put on notice of the claim of the Electricity Board for payment of surcharge in the event of the appellants failing in their appeals in the Supreme Court the appellants did not seek to get any clarification from the Supreme Court. The Supreme Court ultimately dismissed all the appeals on 25th March, 1964. Thereafter the Electricity Board called upon the appellants and other consumers to pay surcharge at the rate of twelve per cent per .....

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..... . It was further argued that the bills issued to them after the decision of the Division Bench of the High Court did not call upon them to pay the arrears and therefore the re was no question of their becoming liable to pay any surcharge. 3. We do not see any substance in any of the submissions advanced on behalf of the appellants. The provision for payment of surcharge is contained in clause 9 of the agreement. The relevant paragraph of clause 9 is as follows : Every consumer shall pay the bill amount within thirty days of the date of receipt of the Bill. In default of such payment he shall pay an additional charge of one percent on the amount of the bill for every month of delay or part thereof . 4. The very rate of levy of surchar .....

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..... they failed in the appeals before the Supreme Court. This was precisely what was pointed out by the Electricity Board in the Bills issued to the consumers after the Supreme Court granted the injunction. We may mention here that the Electricity Board is not demanding any surcharge on the arrears for the period during which the Andhra Pradesh High Court had granted stay. It was explained by the learned Counsel for the Electricity Board that no surcharge was claimed for that period as the operation of G.O. No. 187 dated 30th January 1955 had itself been stayed at that time. Surcharge was claimed for the period during which the appeals were pending in the Supreme Court since the Supreme Court did not stay the operation of G.O. No. 187 but only .....

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