TaxTMI 
TaxTMI 
1997 (3) TMI 600
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.... In the event of any bill of whatever nature it may be not being paid by the due date specified therein, the consumer shall pay an additional charge per day of seven paise per hundred rupees or part thereof on the unpaid amount of the bill for the period by which the payment is delayed, beyond the due dated specified in the bill, without prejudice to the right of the Board to disconnect the supply." In the event of any bill of whatever nature it may be not being paid by the due date specified therein, the consumer shall pay an additional charge per day of seven paise per hundred rupees or part thereof on the unpaid amount of the bill for the period by which the payment is delayed, beyond the due dated specified in the bill, without prejudice to the right of the Board to disconnect the supply." The validity of the aforesaid Notification was questioned in the Allahabad High Court by way of a writ petition filed by the Eastern U.P. Chamber of commerce and Industry, Allahabad and certain individual consumers. On the Interlocutory Application filed in the said writ petition, the High Court passed the following Order on July ....
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....es Limited], as representative of the facts and contention in all the matters being disposed of under this judgment. Though the individual facts vary, the questions arising in these appeals are common. After the dismissal of the writ petitions on March 1, 1993 as aforesaid, Kanoria says, it deposited the difference amount between pre-revised and the revised electricity rates. It did not, however, deposit the "additional charges" leviable under clause 7(b), referred to above, which are generally referred to - and referred to hereinafter - as "late payment surcharge". Thereupon, the Board issued a notice of demand calling upon Kanoria to pay the late payment surcharge in a sum of Rs.3,27,01,408.88p. [calculated upto February 28, 1993]. Similar demand notices were served upon other appellants also. A fresh batch of writ petitions were filed by several consumers including the appellants herein questioning the notices demanding late payment surcharge under clause 7(b). The main contention of the appellants before the High Court was that inasmuch as the High Court had stayed the operation of the Notification dated April 21, 1990 [by its Order dated July 25, 1990 as continued from time....
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.... of 1990 [quoted by us hereinabove]. The correctness of the judgment is called in question in this batch of appeals. Sri R. Vaidyanathan, who lead the arguments on behalf of the appellants, submitted that the impugned decision of the High Court is clearly contrary to the principles enunciated by this Court in Adoni Ginning and cannot, therefore, stand. Counsel relied upon another order this Court dated April 23, 1996 in special leave Petition (C) No.9087-88 of 1996 [M/s. Hindalco Industries Limited v. State of Uttar Pradesh]. Learned counsel submitted that clause 7(b) of the Notification dated April 21, 1990 was penal in nature inasmuch as the late payment surcharge provided by it works out to 25.5 interest per annum. Such high rate of interest, learned counsel submitted, cannot but be characterized as penal. Inasmuch as the decision in Adoni Ginning constitutes the sheet-anchor of the appellant's case, it is necessary to closely examine the facts and ratio of the said decision. Electricity charges were enhanced by the Government of Andhra Pradesh under an Order dated 30th January, 1955. The enhancement was questioned by certain consumer by way of writ petitions in Andhra....
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....any surcharge for that period. The contention of the appellants in Adoni Ginning was that by virtue of the injunction order granted by this Court, the consumers cannot be said to be in default in paying the electricity charges and, therefore, no surcharge was leviable. The contention was rejected by this Court [D.A. Desai and O. Chinnappa Reddy, JJ.]. The Court pointed out that according to clause (9), a consumer was liable to pay the bill amount within thirty days, in default of which he was liable to pay "an additional charge of on e percent on the amount of the bill for every month delay or part thereof". The contention urged by the appellant therein was repelled in the following words: "The injunction granted by this court restrained the government from realising the arrears of enhanced charges..... All that the injunction did was to restrain the Board from realising the arrears which meant that the Board was restrained from taking any coercive action such as disconnection of supply of electricity etc. for the realisation of the arrears. The operation of G.O. No.187 dated 30^th January, 1955, as such was not stayed. Thus the o....
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....respect of the period covered by the order of injunction granted by this Court. This Court held expressly that the grant of and injunction does not relieve the consumers of their obligation to pay the charges at the enhanced rates and, therefore, the demand for surcharge/interest for such period is not illegal. The portions underlined cannot be understood as laying down the proposition that in respect of the period covered by stay, no demand can be made. No such proposition can be deduced from the said passage for the reason that the liability for the said was not at all in issue in the said decision. Unless put in issue and pronounced upon, it cannot be said that there was a decision on the said issue. There was no list between the parties with respect to the period covered by the stay order of the High Court. If so, it cannot be said that any decision was rendered by this court on the said issue or aspect, as it may be called. We, therefore, agree with the High Court that Adoni Ginning cannot be read as laying down the proposition that the grant of stay of a Notification revising the electricity charges has the effect of relieving the consumers/petitioners of their obligation to ....
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....ant authority within a period of one month from the date of dismissal of the writ petition the difference between the amount of electricity dues to be paid hereinafter by the petitioner under our orders and the sum which may be calculated on the basis of the impugned notification". The words "sum which may be calculated on the basis of the impugned notification" in the later order clearly mean and include the late payment surcharge as well. The acceptance of the appellants' argument would thus bring about a discrimination between a petitioner and a petitioner just because of the variation of the language employed by the court while granting the interim order though in substance and in all relevant aspects, they are similarly situated. It is equally well settled that an order of stay granted pending disposal of a writ petition/suit or other proceeding, comes to an end with the dismissal of the substantive proceeding and that it is the duty of the court in such a case to put the parties in the same position they would have been but for the interim order of the court. Any other view would result in the act or order of the court prejudicing a party [Board in this case] for no fault....