M/S NANJAPPA TRUST V. MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

WP/42818/2017

AI Insights

The case involves M/S. Nanjappa Trust, a public charitable trust, which sought a concessional tariff for electricity supply to a hospital it operates, similar to a tariff previously granted for a nursing college. Initially, the trust was granted a concessional tariff for the nursing college, which was later withdrawn. The trust's subsequent applications for a concessional tariff for the hospital were denied by the Karnataka Electricity Regulatory Commission, leading to this writ petition. The High Court of Karnataka, after considering the submissions and evidence, ruled in favor of the trust, directing the extension of the concessional tariff to the hospital from the date a sub-meter was installed.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 670561 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 10-03-2023
• Assessment Year: misc
• Laws Referred To: Articles 226 and 227 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: H V DEVARAJU; SUMANA NAGANAND
• Assessee Lawyers: R V S NAIK; V VINAY GIRI
• Keywords: Concessional Tariff; Public charitable trust; High tension power supply; Sub-meter installation
• Section: HT-2(b); HT-2(A); HT-2C(ii); HT-2C(i)

Judgement Text

" - 1 - WP No. 42818 of 2017 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF MARCH, 2023 BEFORE THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR WRIT PETITION NO. 42818 OF 2017 (GM-KEB) BETWEEN: M/S. NANJAPPA TRUST, NO.660, KUVEMPU ROAD, SHIMOGA – 577 201. REPRESENTED HEREIN BY ITS MANAGING TRUSTEE, MR. D.G.BENAKAPPA. …PETITIONER (BY SRI.R.V.S.NAIK, SENIOR ADVOCATE FOR SRI.V.VINAY GIRI, ADVOCATE) AND: 1. MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED, (MESCOM), WHOLLY OWNED BY THE GOVT.OF KARNATAKA, HAVING CORPORATE OFFICE AT MESCOM BHAVAN, KAVOOR CROSS ROAD, BEJAI, MANGALURU – 575 004. REPRESENTED HEREIN BY ITS CHAIRMAN. 2. ELECTRICITY OMBUSDSMAN, KARNATAKA ELECTRICITY REGULATORY COMMISSION, NO.9/2, 6TH FLOOR, Digitally signed by R HEMALATHA Location: HIGH COURT OF KARNATAKA - 2 - WP No. 42818 of 2017 MAHALAKSHMI CHAMBERS, M.G.ROAD, BANGALORE – 560 001. 3. CONSUMER GRIEVANCE REDRESSAL FORUM, MESCOM, OFFICE OF SE O & M CIRCLE, SARVAGNA RASTE, RAILWAY STATION ROAD, SHIMOGA – 577 201. 4. THE ASSISTANT EXECUTIVE ENGINEER (ELECTRICAL), O & M, CSD-3,MESCOM, GOOD LUCK CIRCLE, NEAR NAGA SUBRAMANY TEMPLE, VIVEKANANDA LAYOUT, SHIMOGA – 577 205. …RESPONDENTS (BY SRI. H.V.DEVARAJU, ADVOCATE FOR R1, R2 & R4; SMT.SUMANA NAGANAND, ADVOCATE FOR R3) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DATED 18.8.2017 IN CASE NO.OMB/M/G - 284/2017 PASSED BY R-2 AT ANNEXURE - R AND ALLOW THE PETITIONER'S APPEAL AND ETC., THIS PETITION, COMING ON FOR FURTHER HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: - 3 - WP No. 42818 of 2017 ORDER Petitioner is the public charitable trust which is evident from the certificate issued by the Commissioner of the Income Tax at Annexure-A dated 16.01.1984. The petitioner submitted an application with the first respondent for supply of 25KVA of High tension power supply for running the Nursing College at Gadikoppa, Shimogga and the said application was approved and 25 KVA was sanctioned to the petitioner with tariff HT-2(b) and additional load of 275 KVA of power was also sanctioned on 09.07.2010. 2. The petitioner submitted an application dated 23.04.2014 (Annexure-F) with the first respondent for converting the tariff HT-2(B) to HT-2(A), and the said application was considered and concession tariff was extended with effect from 01.05.2014 vide Annexure-G. The Concessional tariff extended to the petitioner was withdrawn by communication dated 25.08.2015 (Annexure-H) stating that the electricity is supplied power to the college as well as Hospital established by the petitioner-Trust. The withdrawal of the concessional tariff was challenged unsuccessfully before the - 4 - WP No. 42818 of 2017 second and third respondent. Against which the present petition is filed. 3. During pendency of the petition, the petitioner submitted an application (Annexure-T) to provide sub-meter to the Nursing College and the said application was accepted and a separate meter was provided to the Nursing College. The first respondent sanctioned the installation of the sub-meter to the Nursing College by communication dated 26.07.2018 (Annexure-U). In terms of the sanction granted for installation of sub-meter, the sub-meter was installed on 15.05.2019. However, the first respondent did not extend the concessional tarrif to the installation to the Hospital run by the petitioner- Trust. Against which the petitioner approached the second and third respondents and challenge to the same was unsuccessful. 4. Thereafter, the petitioner filed an application for amendment and the application for amendment was allowed permitting the petitioner to challenge the order passed by the second and third respondent for rejecting the request of the petitioner for converting the H.T-2C(ii) to H.T-2C(i), insofar as - 5 - WP No. 42818 of 2017 it relates to consumption of the electricity by the Hospital run by the petitioner. 5. Sri. V.Vinay Giri,. learned Senior Counsel for the petitioner's counsel submits that the petitioner is a public charitable trust and is entitled for concessional tariff for the Hospital run by the charitable trust, as specified under the tariff issued by the Karnataka Electricity Regulatory Commission w.e.f 15.05.2019 i.e., the date of the installation of the sub- meter to the nursing college. 6. On the other hand, learned counsel for respondent No.1 submits that the request of the petitioner for extension of concessional tariff for running the Hospital requires to be reconsidered, subject to petitioner establishing that the Hospital is run by the public charitable trust. 7. I have considered the rival submissions made by the learned counsel for the parties and perused the material on record. 8. A perusal of Annexure-A i.e., certificate issued by the Commissioner of the Income Tax, the communications - 6 - WP No. 42818 of 2017 issued by the first respondent at Annexures-G and H indicates that the petitioner-Trust is a public charitable trust and running the Hospital in the property situated at Gadikoppa, Shimogga. Initially, a single-meter was provided in the name of the Nursing College run by the petitioner, and after the establishment of the Hospital by the petitioner, the meter was used by both the Nursing College as well as the hospital. Thereafter, the petitioner submitted an application with the first respondent to provide a sub-meter to the Nursing college, so as to claim concessional tariff for running the Hospital in the subject premises. 9. On the request, the first respondent has provided the sub-meter to the Nursing College exclusively, and from the date of installation of the sub-meter, the petitioner is running Hospital is entitled for concessional tariff, insofar it relates to the Hospital. Accordingly, petition is disposed of directing the first and fourth respondent to extend the concessional tariff H.T 2 C(i) to the extent of consumption of the electricity by the hospital run by the petitioner-Trust w.e.f 15.05.2019. - 7 - WP No. 42818 of 2017 The first and fourth respondent to adjust the excess electricity charges collected from the petitioner to the future concessional consumption charges. Sd/- JUDGE RKA List No.: 1 Sl No.: 26 "