THE MADRAS ALUMINIUM CO. LTD v. THE TAMIL NADU ELECTRICITY BOARD & Anr.

period of time, in July, 2004 the reduction to 10000 KVA was agreed to and a new agreement to that effect was entered into; b) irrespective of the amount of reduction in KVA sought other applications were considered within a reasonable period of time; c) no reason has been put forth for keeping such application pending; d) that the Appellant duly and repeatedly followed up with the authorities to effectuate such reduction; and e) the Appellant has been unjustifiably asked to furnish costs for unutilized electricity which, in any case should not have extended beyond the period of six months (considering ‘reasonable period’ to consider an application, to be so), for a period much larger thereto, rendering such action unquestionably unreasonable and arbitrary. In view of the factual narrative, it would not be open for the Respondents to contend that the petitioner is not liable for the refund of the amount deposited under protest towards the bills so generated taking the maximum load to be 23000 KVA. Particularly, when at no point in time, the Appellant neither sought for nor consumed the electricity more than the maximum demand of 10000 KVA. Acknowledging the financial health of the Appellant, in the 1999 agreement, the Respondent ought to have taken a decision on the Appellant request with a reasonable dispatch and terms which ought to have been within a period latest by six months and not two and a half years as was so eventually done. Judgment passed by the High Court is set aside. [Paras 36-39][756-F-G; 757-A-D]

1.5 The Respondent, The Tamil Nadu Electricity Board is directed to return the amount as may be calculated and verified, paid by the Appellant to it for 13000 KVA, in excess to its request of maximum sanctioned demand of 10000 KVA (23000-10000 = 13000 KVA). Such amount shall be calculable six months post making of application, i.e. on 24th December, 2001, till the date of execution of the new agreement in July, 2004. Clarifying that the period is to commence from 23rd June, 2002 till 1st July, 2004 (both inclusive); interest applicable thereupon would be simple in nature @ 6 per cent per annum. All payments be made within two months from today. [Para 40][757-E-F] A B C D E F G H THE MADRAS ALUMINIUM CO. LTD. v. THE TAMIL NADU ELECTRICITY BOARD AND ANR. 745 Natural Resources Allocation, IN Re, Special Reference No.1 of 2012 (2012) 10 SCC 1: [2012] 9 SCR 311 – followed.