TaxTMI 
TaxTMI 
2009 (2) TMI 745
X X X X Extracts X X X X
X X X X Extracts X X X X
....n and that necessitated the company to approach Karnataka High Court for a direction to KPTC to supply the sanctioned energy. On 16th April, 1992, the High Court directed KPTC to supply electrical energy as per sanction forthwith and subsequently, time for supply of electricity was extended by the High Court upto 21st July, 1992. KPTC raised an additional demand of Rs. 8,38,000/- from the company and further demand in the sum of Rs, 1,34,000/-. The company is said to have deposited the said amount. However, the actual supply of the power commenced in the month of November, 1992. The company accordingly filed a complaint under the Consumer Protection Act, 1986 (for short, 'the Act, 1986') before the Consumer Disputes Redressal Forum, Belgaum claiming damages in the sum of Rs. 99,900/- for delay in supply of electricity. The complaint was contested by KPTC, and, inter alia, preliminary objection was raised that complaint was not maintainable as the complainant was engaged in commercial activity and electricity being goods; sale of goods to a commercial consumer for a commercial purpose was outside the scope of the Act, 1986. 3. As there were several complaints wherein identical obje....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of electricity does not come within the ambit of "service" under Section 2(1)(o) of the Act, 1986. If for the arguments' sake, it is treated "service", since it is for commercial purpose, it is excluded from the purview of sub-clause (1)(d)(ii). 7. At this stage, it would be appropriate to refer to some of the provisions of the Act, 1986 as were existing at the relevant time in the year 1992 which are relevant for the consideration of the submissions of the learned counsel for KPTC. 8. Section 2(1)(d) defines "consumer" as follows:- "Consumer" means any person who, - (i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtain such goods for resale or for any commercial purpose; or (ii) hires any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssioner of Stamps (1899) AC 99 made the following classic statement: "The word "include" is very generally used in interpretation clauses in order to enlarge the meaning of words or phrases occurring in the body of the statute; and when it is so used these words or phrases must be construed as comprehending, not only such things as they signify according to their natural import, but also those things which the interpretation clause declares that they shall include. But the word "include" is susceptible of another construction, which may become imperative, if the context of the Act is sufficient to show that it was not merely employed for the purpose of adding to the natural significance of the words or expressions defined. It may be equivalent to "mean and include", and in that case it may afford an exhaustive explanation of the meaning which, for the purposes of the Act, must invariably be attached to these words or expressions." 13. Dilworth (supra) and few other decisions came up for consideration in Peerless General Finance and Investment Co.Ltd. and this Court summarized the legal position that inclusive definition by the Legislature is used; (one) to enlarge the meaning of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ic person like company. As a matter of fact, the four categories by way of enumeration mentioned therein is indicative, categories (i), (ii) & (iv) being unincorporate and category (iii) corporate, of its intention to include body corporate as well as body un-incorporate. The definition of 'person' in Section 2(1)(m) is inclusive and not exhaustive. It does not appear to us to admit of any doubt that company is a person within the meaning of Section 2(1)(d) read with Section 2(1)(m) and we hold accordingly. re: contention - (ii) and (iii) 19. In CST v. M.P. Electricity Board, Jabalpur; case 1969 (2) SCR 939, this Court held that electricity is 'goods'. In the case of State of Andhra Pradesh v. National Thermal Power Corporation; (2002) 5 SCC 203, the Constitution Bench approved the observations made in M.P. Electricity Board to the extent that electrical energy can be transmitted, transferred, delivered, possessed, etc., but did not agree with the observation that electrical energy can be stored. The Constitution Bench held that significant characteristic of electrical energy is that its generation or production coincides almost instantaneously with its consumption. In the case of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....arsely developed areas. (3) Nothing in the foregoing provisions of this section shall derogate from the power of the Board, if it considers it necessary or expedient to fix different tariffs for the supply of electricity to any person not being a licensee, having regard to the geographical position of any area, the nature of the supply and purpose for which supply is required and any other relevant factors. (4) In fixing the tariff and terms and conditions for the supply of electricity, the Board shall not show undue preference to any person.] 22. Whether the supply of electricity by KPTC to a consumer is sale and purchase of goods within the meaning of Section 2(1)(d) (i) of the Act, 1986? We do not think so. Although title of Section or marginal note speaks of "the sale of electricity by the Board to persons other than licensees" but the marginal note or title of the Section cannot afford any legitimate aid to the construction of Section. Section 49 speaks of supply of electricity to any person not being a licensee upon said terms and conditions as a Board thinks fit and for the purpose of such supply free uniform tariffs. This Court has already held in Southern Petrochemical ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....facilities in connection with electricity. According to him, the facility is an expression which facilitates the supply of electricity to an installation and the definition of service does not cover supply of electricity. This contention of the learned counsel is founded on erroneous assumption that supply of electricity is a sale of electricity and the use of expression 'supply' is synonym for 'sale'. We have already noticed above, which we need not repreat, that supply of electricity to a consumer by KPTC is not sale of electricity. The expression 'supply' is not synonym for 'sale'. We reiterate what has been stated by this Court in Southern Petrochemical Industries Co. Ltd. (supra) that supply does not mean sale. The expression 'but does not include a person who avails of such services for any commercial purpose' inserted in Section 2(1)(d)(ii) by the Act 62 of 2002 is not applicable in the facts and circumstances of the present case since the controversy relates to the period prior to amendment. 25. In what we have discussed above, the complaint made by the company before the District Forum cannot be said to be not maintainable and we hold, as we must, that complaint is mainta....