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PLD 2008 Karachi 221

Syeda WAQUAR JAHAN NADEEM through her Son vs KARACHI ELECTRIC

CitationPLD 2008 Karachi 221
CourtSindh High Court
Case No.Constitutional Petition No,1734 of 1999
Date2004-05-28
Judge(s)Khilji Arif Hussain, Shabbir Ahmed
ResultPetition dismissed

ORDER

1. ' KHILJI ARIF HUSSAIN, J.---The petitioner by this petition under Article 199 of the Constitution of the Islamic Republic of Pakistan, 1973, questioned the levy and recovery of "Surcharge" and "Additional Surcharge" by respondent No,1 Karachi Electric Supply Corporation.

2. ' Brief facts for the purpose of disposing of the petition are that respondent No,1 is an agency constituted under law to supply electricity to its consumers. Respondent sent bills in accordance with the reading showing consumption of the unit but also included "fuel adjustment charges, surcharge and additional surcharge" in the bill. The petitioner's grievance is against the levy of "surcharge" and "additional surcharge".

3. ' Heard Mr. Muhammad Farogh Naseem, learned Advocate for the petitioner, Mr. Muhammad Ikram Siddiqui, learned Advocate for respondent No,1, Mr. Syed Zaki Muhammad learned DAG and Mr. M.

4. Sarwar Khan learned Addl. A.G.

5. ' Mr. Muhammad Farogh Naseem, learned Advocate for the petitioner argued that charging of "surcharge" and "additional surcharge" by the respondent. No,1 is without lawful authority and contrary to law and respondents have no lawful authority to include "Surcharge" and "Additional.

6. Surcharge" in the bill. Learned Advocate tried to distinguish his case from the principle laid down by the Hon' ble Supreme Court of Pakistan in the case of Gadoon Textile Mills and 514 others v. WAPDA and others,,1997 SCM R 641 and relied upon the case of Nafees Bakers and another v. Government of Azad Jammu and Kashmir 1994 CLC 2244. Learned Advocate argued that while fixing the tariff authority can approve only rate of electric charges to be charged but cannot add "surcharge" and "additional surcharge" in it. In support of his contention the learned Advocate drew our attention to section 31(4) of Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997.

7. ' On the other hand learned advocate for the respondent No,1 argued that section 31(4) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 authorizes the Federal Government to approve rate and electric power service provided by Karachi Electric Supply Corporation (KESC) and in exercise of the said power by Notification S.R.O 1045(1)/99 of September 16, 1999 Federal Government authorized the respondent No,1 to charge tariff as per schedule of the said Notification ' We have taken into consideration the arguments advanced by the learned Advocates for the parties and also gone though the record. From the Notification S.R.O. 1045(1)/99 of September 16, 1999 issued on behalf of Federal Government of Pakistan rate of electric power supplied by the respondent No,1 was fixed. Respondent No,1 was further authorized to charge "surcharge" at the rate of 10.4 per cent of supply charges. In the said Notification it is further clarified that the surcharge include "fixed charges, energy charges, FAS and lower power factor penalty."

8. ' Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 was enforced on September 16, 1997 with an object of Regulation of Generation, Transmission and Distribution of Electric Power throughout Pakistan. Section 7 of the said Act though described power and function of the authority which include to determine tariffs, rates, chargep and other terms and conditions for supply of electric power supply of generation, transmission and distribution to companies but authority was required while fixing the tariff for supply of electric power to take into consideration accommodation of the Provincial Government in which generation facilities located. Section 31 of subsection (i) of subsection (4) reads as follows:-- "Tariff---(1) As soon as may be, but not later than six months from commencement of this Act, the Authority shall determine.

(4) Notification of the Authority's approved tariff, rates charges and other terms and conditions for the supply of electric power services by generation, transmission and distribution companies shall be made in the official Gazette, by the Federal Government upon intimation by the Authority: ' Provided that the Federal Government may, as soon as may be, but not later than fifteen days of receipt of the Authority's intimation, require the Authority to reconsider its determination of such tariff, rates charges and other terms and conditions. Whereupon, the Authority shall within fifteen days determine these anew after reconsideration and intimate the same to the Federal Government".

9. ' The term "Charge" and "Surcharge" has been defined in Black's Law Dictionary Vith Edition as under: "Charge to impose a burden, duty, obligation or lien to create claim against property, to assess, to demand, to accuse, to instruct a jury on matters of law. To impose a tax, duty or trust. To entrust with responsibilities and duties e.g. Care of another. In commercial transactions to bill or invoice, to purchase on credit."

10. "Surcharge.---An overcharge, an exaction, impost, or encumbrance beyond what is just and right, or beyond one's authority or power. An additional tax or cost onto an existing tax, cost, or charge."

11. Although there are provisions of charging the "surcharge" or "additional surcharge" in KESC Act, 1952 but after proclamation of Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 which is a Federal Act which authorizes levy of surcharge, we are of the view if there is any inconsistency between Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 which is Federal Act and Karachi Electric Supply Act, 1952 the latter will prevail. It is not the case of petitioner that the charge and surcharge have been imposed without the consent of the Provincial Government. Section 3 of Karachi Electric Supply Act LVII of 1952 authorized Provincial Government to levy electricity surcharge and additional surcharge upon the consumption of electricity. We are of the view that respondent No,1 was including "surcharge" and additional surcharge" in the electric bill issued by them. Respondent No,1 is not without lawful authority.

12. ' For the foregoing reasons the petition is dismissed in limine along with the listed application on 30-3-2004.

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