Continuous Process Industries Allowed to Use 50% of Sanctioned Load During Peak Hours; Permissions Not Revoked: P&H High Court Revoked Penalty

In a notable judgment delivered by Hon'ble Mrs. Justice Alka Sarin of the Punjab and Haryana High Court, an appeal filed by Punjab State Electricity Board (PSEB) against M/s Rasan Detergents was dismissed, with the court affirming that the respondent did not violate the imposed peak load hours restrictions. The appellants contended that the respondent exceeded permissible power usage during restricted hours, thus warranting a hefty penalty.

The central legal question revolved around whether the respondent, a detergent manufacturer, exceeded permissible power usage during peak hours, and whether permissions granted earlier allowing increased usage during these hours were still valid.

M/s Rasan Detergents was previously allowed to use up to 50% of their sanctioned load during peak hours as per PSEB’s instructions, due to their status as a continuous process industry. This permission was challenged by PSEB after an alleged violation where the respondent was reportedly using 35.294 KW during peak hours, a figure within the previously sanctioned limits.

Continuous Process Industry Status: The court noted that evidence, including a letter from PSEB dated 5th July 1983, acknowledged the respondent as a continuous process industry, which was crucial for determining the permissible power usage during peak hours.

Validity of Permissions: The court emphasized that there was no evidence presented that the aforementioned permissions allowing greater power usage during peak hours were officially revoked. This was central to dismissing the appellants' claim.

Assessment of Power Usage: It was undisputed that during the time of the alleged violation, the respondent was utilizing 35.294 KW, well within the 50% limit of the sanctioned load for continuous process industries during peak hours. This factual finding was critical in both the trial and appellate courts' decisions, and the High Court saw no reason to diverge from this determination.

Decision of the Judgment: Justice Alka Sarin concluded that the respondent had not exceeded the permissible power usage limits during peak hours and that all permissions pertinent to their operation status as a continuous process industry remained valid. Accordingly, the appeal was dismissed, confirming the decisions of the lower courts.

Date of Decision: 26th April 2024

Punjab State Electricity Board & Ors.M/s Rasan Detergents