Case Note & Summary
The dispute arose between the U.P. Avas Evam Vikas Parishad and the U.P. Power Corporation regarding the payment of supervision charges for electrification works. The U.P. Avas Evam Vikas Parishad, a statutory body under the U.P. Awas Evam Vikas Parishad Adhiniyam, 1965, was authorized to carry out electrification works in colonies it developed. Initially, supervision charges were set at 5% of the estimated cost as per an office memorandum dated 17.1.1984. However, this rate was revised to 15% through another memorandum dated 24.4.1998. The U.P. Avas Evam Vikas Parishad contested this increase, arguing that it was bound by the earlier memorandum and that the Government order dated 2.6.1982 allowed it to execute electrification works without supervision charges. The Uttar Pradesh Electricity Regulatory Commission upheld the 15% charge, leading to an appeal to the Appellate Tribunal for Electricity, which was dismissed. The Supreme Court analyzed the statutory nature of the Electricity Supply Code, 2002, concluding that it superseded the earlier administrative orders. The court emphasized the necessity of supervision for safety and compliance with standards in electrification works. Ultimately, the appeal was dismissed, affirming the applicability of the 15% supervision charges under the Electricity Supply Code, 2002.
Headnote
A) Electricity Law - Supervision Charges - Applicability of Charges - Electricity Supply Code, 2002 - The court held that the supervision charges stipulated under the Electricity Supply Code, 2002 superseded the earlier office memorandum dated 17.1.1984, which had no statutory force. The appellant's claim that the earlier memorandum remained applicable was rejected, affirming the authority of the Electricity Supply Code, 2002 (Paras 10-12).
Issue of Consideration
Whether the U.P. Avas Evam Vikas Parishad was liable to pay supervision charges as per the Electricity Supply Code, 2002, or could rely on the earlier office memorandum dated 17.1.1984.
Final Decision
The Supreme Court dismissed the Civil Appeal, affirming the applicability of the 15% supervision charges under the Electricity Supply Code, 2002 and rejecting the claims based on the earlier office memorandum.
Law Points
- Electricity Supply Code
- supervision charges
- statutory authority
- administrative orders
- designated licensees
