Case Note & Summary
The case involved appeals by Hitech Electrothermics & Hydropower Ltd. against the judgment of the Kerala High Court regarding eligibility for a concessional tariff under the government's industrial policy. The appellant contended that it was entitled to the concessional tariff despite commencing commercial production in 1998, after the stipulated deadline of 31st December 1996, due to delays in power supply from the Kerala State Electricity Board. The High Court had ruled against the appellant, affirming the State Government's position that the tariff benefit was only available to units that commenced production within the specified timeframe. The appellant argued that the delays were due to the Board's inaction in providing the necessary electric connection, which hindered the commencement of production. The court analyzed the government's industrial policy and the Board's obligations under the Indian Electricity Act, 1910, noting that the Board had allocated power to the appellant in 1995 but failed to supply it in a timely manner. The court found that it would be inequitable to deny the appellant the benefit of the concessional tariff due to the Board's failure, despite the appellant not starting production by the deadline. Ultimately, the court directed that the appellant be granted the concessional tariff for a period of three years, taking into account the interim orders previously enjoyed by the appellant. The High Court's judgment was set aside, and the appeals were allowed to the extent indicated.
Headnote
A) Administrative Law - Industrial Policy - Eligibility for Concessional Tariff - Indian Electricity Act, 1910, Section 22 - The appellant claimed entitlement to concessional tariff despite not commencing production by the stipulated date due to delays in power supply. The court held that the Board's failure to provide timely power supply justified granting a reduced concessional tariff for three years instead of five, recognizing the government's incentive policy (Paras 1-5).
Issue of Consideration
Whether an industrial unit can claim the benefit of concessional tariff under the policy despite delays in production attributable to the Board's inaction.
Final Decision
The Supreme Court set aside the Kerala High Court's judgment and allowed the appeals, granting the appellant a concessional tariff for three years instead of five, considering the delays caused by the Board's inaction.
Law Points
- Concessional tariff
- Industrial policy
- Electricity supply obligations
- Equitable considerations
- Delay in production
