Sri Tirupati Wires vs State of Jharkhand and Others

S.J. Mukhopadhaya, J.—This application has been preferred by petitioner for direction upon the respondents to accept the deposit of security money amount to Rs. 3,50,832/- in shape of National Saving Certificate (NSC for short) for proposed load of 150 KVA sanctioned to the petitioner vide letter No. 1513/ESE/Giridhi dated 27th September, 2002.

It is alleged that the respondents have refused to accept such security money in shape of NSC vide their letter No. 1526/ESE/Giridih dated 1st October, 2002 on the ground that there is no circular/guide line issued by the Jharkhand State Electricity Board (JSEB for short).

The main plea taken by the petitioner is that the refusal to accept NSC as security deposit by respondent-JSEB is country to Clause 15.2.13 of the Jharkhand Industrial Policy, 2001. The respondents have opposed to accept security money in shape of NSC on the ground that there is no such policy/guide line issued by the State of Jharkhand of JSEB for grant of fresh electrical connection.

The question arises whether the JSEB can be forced to accept the security money in shape of NSC for sanction of load and grant of fresh electrical connection or not.

For determination of the issue, it is desirable to discuss one or other guide line/policy issued by the State of Jharkhand or JSEB.

An Industrial Policy, 2001 was issued by the State of Jharkhand vide Memo No. 1888 dated 25th August, 2001. Therein, certain guide lines were given in respect to power sector. While Clause 15.2.4 of the said Policy, 2001 deals with priority to industrial connection, at Clause 15.2.13, it is stipulated that the State Electricity Board will accept NSC/Fixed Deposit against security money.

The aforesaid policy was followed by resolution No. 223 dated 13th August, 2002 issued from Energy Department of the State of Jharkhand u/s 78A of the Electricity (Supply) Act, 1948. Therein while certain benefits were allowed to consumers, for grant of contract, the manner in which tender notice to be issued and security money to be deposited has been stipulated. It has directed the State Electricity Board to accept NSC/Fixed Deposit against security money.

The JSEB in its turn issued Notification No. 5058 dated 29th August, 2000 communicating the Government Policy u/s 78A of the Electricity (Supply) Act, 1948 to give benefits to consumers. Therein, no stipulation has been made to accept NSC/Fixed Deposit against security money for grant of electrical connection.

Government Policy u/s 78A of the Electricity (Supply) Act, 1948 relating to tender notice. In the said notification, it is stipulated to accept NSC or Fixed Deposit as security money in place of cash.

From the aforesaid fact, it will be evident that while State Government issued policy decision u/s 78A of the Electricity (Supply) Act, 1948, at par with the Industrial Policy, 2001, no guide line has been issued/direction has been given to accept NSC/Fixed Deposit in place of cash as security money for grant of electrical connection. Whatever the guide line issued u/s 78A of the Act, 1948 relating to acceptance of NSC/Fixed Deposit as security money, it relates to tender notice and contract for work/supply order.

The petitioner, thus, cannot derive any advantage of Industrial Policy, 2001, the State of Jharkhand having issued limited guide line/policy u/s 78A of the Act, 1948 and having not issued any guide line to accept NSC/Fixed Deposit as security money for grant of electrical connection.

There being no merit, the prayer is rejected. The interim order stands vacated. The petitioner is liable to pay the total security money in cash. If, in the meantime, he has taken electrical connection in terms with the interim order, he will deposit the rest of the security money in cash within one month.

The writ petition is dismissed.