CLC 2017

2017 PLP 1679 (CLC)

FAZAL CLOTH MILLS LIMITED through authorized Representative and 14 others — Petitioners Versus FEDERATION OF PAKISTAN, MINISTRY OF WATER AND POWER through Secretary and 3 others — Respondents

Jurisdiction / Court
Lahore (Multan Bench)
Decided Date
2016-January-7
Honorable Judges
N/A
Case Reference Summary (AEO Optimized)
Citation 2017 PLP 1679 (CLC)
Forum / Court Lahore (Multan Bench)
Bench Members N/A
Parties FAZAL CLOTH MILLS LIMITED through authorized Representative and 14 others — Petitioners Versus FEDERATION OF PAKISTAN, MINISTRY OF WATER AND POWER through Secretary and 3 others — Respondents
Primary Law Regulation of Generation, Transmission and Distribution of Electric Power Act (XL of 1997)
💡 Quick Legal QA & Summary / سوال و جواب خلاصہ
Q1: What are the key laws and sections cited in 2017 PLP 1679 (CLC)?

This judgment primarily cites: Regulation of Generation, Transmission and Distribution of Electric Power Act (XL of 1997) as referenced in Pakistani case law index.

Q2: Which judicial bench decided the case 2017 PLP 1679 (CLC)?

The case was heard and decided by the Lahore (Multan Bench) bench comprising: N/A.

Q3: What is the official citation format for this judgment on Pakistan Law Portal?

Cite this legal precedent as: 2017 PLP 1679 (CLC) (FAZAL CLOTH MILLS LIMITED through authorized Representative and 14 others — Petitioners Versus FEDERATION OF PAKISTAN, MINISTRY OF WATER AND POWER through Secretary and 3 others — Respondents). Read the full summary and cross-referenced laws free on Pakistan Law Portal.

Laws Cited

Regulation of Generation, Transmission and Distribution of Electric Power Act (XL of 1997)

Representation

  • Malik Muhammad Tariq Rajwana, Barrister Malik Kashif Rafique Rajwana, Sajjad Hussain Tangra, Syed Riaz-ul-Hassan Gillani, Tariq Mehmood Dogar and Rao Qasim for Petitioners.
  • Aamir Aziz Qazi, Furqan Naveed, Ch. Saleem Akhtar Warraich, Muhammad Maalik Khan Langah, Muhammad Amin Malik and Bilal Amin for Respondents.

Headnotes / Summary

S. 31(4)

Tariff

Regulatrory Authority's approval

Notification

Scope

Electricity distribution companies were legally entitled to make recommendation for consumer end tariff and send the same to the Authority/NEPRA for approval

Where the Authority approved the same, the Federal Government had no option but to notify the consumer end tariff, determined by NEPRA, in the official gazette

If the Federal Government had not notified the recommendation in official gazette then it could be held that the same was done, with an intention not to forward the benefit to the public at large given by NEPRA

High Court directed Federal Government to issue notification within specified time accordingly

Constitutional petition was allowed accordingly. .

Judgment & Decree

ALI AKBAR QURESHI, J.

Through this single judgment, I intend to dispose of following writ petitions along with instant petition, as common question of law is involved in all these petitions:-- Sr. No. Case Number

1. W.P. No.7288 of 2015

2. W.P. No.7388 of 2015

3. W.P. No.9481 of 2015

4. W.P. No.7385 of 2015

5. W.P. No.7299 of 2015

6. W.P. No.8854 of 2015

7. W.P. No.7778 of 2015

2. The petitioners, who are manufacturers of different items of textile are industrial consumers of the respondent electricity distribution company and are required to be charge as per latest, electricity tariff as determined by the respondent-NEPRA, through this Constitutional petition, the following prayer has been made: "In view of the above, it is respectfully prayed as under:

1. The. Respondent Federal Government may very kindly be directed to immediately notify the latest tariff for FY 2014-15 as finally determined by NEPRA through its decision passed on 27.3.2015 without any further delay of time;

2. The Respondents may very kindly be directed to immediately start billing its consumers as well as the Petitioners on the basis of tariff as determined for FY 2014-15 and may very kindly be restrained from raising the billing demand on the basis of previously determined higher tariff.

3. As the Respondents have deliberately and illegally withheld/delayed the issuance of relevant notification so as a direction may also be very kindly issued that pending the issuance of notification as humbly prayed above, the electricity bill be issued to the Petitioner on the basis of latest Reduced Tariff for 2014-15 and they may very kindly be directed to forthwith issue amended electricity bills for the current month and continue to issue bills at above reduced rates for coming months till the final decision of the petition;

4. The Respondents may very kindly be directed to refund/adjust the excessively recovered amounts from the Petitioners/consumers since 1.7.2014 on the basis of previous years' higher tariff as under the law the above determined reduced tariff for FY 2014-15 becomes applicable from the 1st day of the Financial Year i.e. from 1.7.2014;

5. Costs of the petition including special costs under S.35-A, C.P.C. may also be very kindly afforded to the petitioner;

6. Any other relief deemed appropriate in the peculiar circumstances of the case may also be very kindly afforded to the petitioner."

3. Concisely, the facts as stated by the petitioners are that the respondent electricity distribution company (MEPCO) filed, as submitted by the petitioners, deliberately belated tariff petition seeking the consumer end tariff determination for the financial year 2014-2015 on 15.09.2014 to the National Electric Power Regulatory Authority (hereinafter called "NEPRA") under Section 31(4) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (NEPRA Act, 1997). On the petition filed by the respondent-MEPCO, the NEPRA authorities after due deliberation, determined the consumer end tariff by reducing the electricity tariff by a margin of at least Rs.2.00 per unit for every consumer category including domestic, commercial and industrial. After determining the consumer end tariff on the request of the respondent-MEPCO, the same was intimated to the Federal Government for the purpose of issuance of above required mandatory notification under Section 31(4) of the Act ibid vide its letter No.NEPRA/TRF-283/MEPCO-2014/4264-4266 on 27.03.2015.

4. The only grievance voiced through these petitions by the petitioners is that the respondent-federal government till today has not discharged its mandatory statutory obligation by notifying the tariff determined by the NEPRA in the official gazette despite the fact the respondent-NEPRA timely intimated to the respondent-Federal Government and the Federal Government is required to notify the same in official gazette under Section 31(4) of the Act ibid.

5. Learned counsel for the petitioners submit, that the mala fide on the part of the federal government is conspicuous by not publishing the notification in the official gazette to fulfill the mandatory requirement and further submitted, that the federal government in fact is not intended to grant the benefit given or determined by the NEPRA.

6. Needless to mention, that under Section 31(4) of the Act ibid, which is reproduced as under, the Federal Government is bound to the tariff determined by the NEPRA in the official gazette: "Section 31(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; [Provided further that the Authority may, on a monthly basis and not later than a period of seven days, make adjustments in the approved tariff on account of, any variations in the fuel charges and, policy guidelines as the Federal Government may issue and, notify the tariff so adjusted in the official Gazette.] "

7. In this case, as evident from the record, the respondent-NEPRA after determining the consumer end tariff, intimated the same to the respondent-federal government through a letter No.NEPRA/TRF-283/MEPCO- 2014/4264-4266 dated 27.03.2015 but unfortunately, till today, the benefit given by the NEPRA to the public at large has not been notified in the official gazette by the federal government, therefore, it can safely be held, that the federal government with an intention not to forward the benefit given by the NEPRA by reducing Rs.2.00 per unit, withheld the notification which on the part of the State in any case is not expected and appreciable.

8. Even otherwise, as submitted by the learned counsel for the petitioners, the matter has been finalized up to the Hon'ble Supreme Court of Pakistan, therefore, the respondent-federal government has no option but to notify the consumer end tariff determined by the NEPRA in the official gazette.

9. In view of the above and the prayer made by the petitioners, these petitions are allowed, the respondent-federal government is directed to notify the consumer end tariff determined by the respondent-NEPRA and intimated through the above referred letter dated 27.03.2015 in accordance with law within a period of 30 days after receiving the certified copy of this order. No order as to cost. JK/F-10/L Petitions allowed.