Partly allowed

Alathur Grama Panchayat v. Kerala State Electricity Board

Kerala HC26 Mar 2012WA/597/2012

Case brief

AI extract

What is this about?

The High Court allowed a writ appeal partly, modifying the statutory interest rate on belated electricity bill payments from the statutory rate to 12% per annum for a public appellant, conditional on strict adherence to installment terms.

What did the court decide?

Allowed the writ appeal partly by reducing the interest rate to 12% per annum for delayed payments.

Alathur Grama Panchayat Vs Kerala State Electricity Board — Banking and Recovery | Kerala HC (2012)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT:

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THE HONOURABLE MR.JUSTICE C.N.RAMACHANDRAN NAIR

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THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN

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MONDAY, THE 26TH DAY OF MARCH 2012/6TH CHAITHRA 1934

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WA.No. 597 of 2012

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AGAINST THE JUDGMENT IN WPC.4438/2012 DATED

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APPELLANT/APPELLANT/PETITIONER:

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ALATHUR GRAMA PANCHAYAT, REPRESENTED BY ITS SECRETARY, ALATHUR PALAKKAD DISTRICT.

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BY ADV. SRI.S.RAMESH BABU

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RESPONDENTS/RESPONDENTS/RESPONDENTS:

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KERALA STATE ELECTRICITY BOARD, REPRESENTED BY ITS SECRETARY, VYDHYUTHI BHAVAN PATTOM, TRIVANDRUM-4.

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THE ASSISTANT EXECUTIVE ENGINEER, ELECTRICAL SUB DIVISION KERALA STATE ELECTRICITY BOARD, ALATHUR PALAKKAD DISTRICT-41.

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THE CONSUMER GRIEVANCE REDRESSAL FORUM, POWER HOUSE ROAD, ERNAKULAM-31.

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STATE ELECTRICITY OMBUDSMAN, PALLIKAVIL BUILDING MAMANGALAM-ANCHUMANA TEMPLE ROAD, EDAPPALLY KOCHI-682024.

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BY SRI.S.SHARAN,SC,K.S.E.BOARD SRI. P. SANTHALINGAM, SC. K.S.E.BOARD

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THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 26-03-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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jma

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C.N. RAMACHANDRAN NAIR, & K. VINOD CHANDRAN, JJ

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---------------------------------------------------Writ Appeal No.597 of 2012

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---------------------------------------------------Dated this the 26^th day of March, 2012

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J U D G M E N T

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C.N. Ramachandran Nair , J

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Dispute is with regard to the rate of interest payable for belated payment of electricity bills in installments. Standing Counsel Sri. P. Santhalingam took notice on admission and opposed the writ appeal stating that the interest is statutory provided under Section 36(5) of the Electricity Supply Code, 2005 and the Ombudsman while granting installment amount could not have waived the interest. We accept the contention of the respondents which found acceptance with the learned Single Judge because compensatory interest has to be paid for belated payment. However what we notice is, appellant is also a public institution and instalment was granted because of the financial difficulties of the Panchayat. We therefore, in our discretion, reduce the interest to 12% per annum that is @ 1% on the belated payment for every month of delayed

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W.A No.597/2012

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: 2:

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payment. We allow the writ appeal partly modifying the interest portion. Reduced interest will apply only if payments are made strictly in terms of the facility granted by the Ombudsman and in the event of default, the statutory interest can be recovered.

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Writ appeal is disposed of modifying the judgment as above.

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Sd/-

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C.N. RAMACHANDRAN NAIR (Judge)

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Sd/ K. VINOD CHANDRAN (Judge)

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jma

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//true copy//

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P.A to Judge

Alathur Grama Panchayat v. Kerala State Electricity Board

Case brief

What is this about?

What did the court decide?

Alathur Grama Panchayat v. Kerala State Electricity Board

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

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