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HC rules in favour of BEST, says MTNL is commercial consumer

Press Trust of India
Apr 08, 2013 at 11:35am IST

Mumbai: The Bombay High Court has upheld the decision of a power distribution company categorising telephone exchanges of Mahanagar Telephone Nigam Ltd (MTNL) as 'commercial consumer' for the purpose of charging tariff. MTNL had filed a petition challenging the decision of Brihanmumbai Electric Supply and Transport Undertaking (BEST) to change its category from 'industrial consumer' to 'commercial consumer'.

BEST contended that the Appellate Tribunal for Electricity had recently held that telephone exchanges were liable to be charged on the basis of commercial category (non-residential supply category) and that the arguments that telephone exchanges are 'industrial users' was not accepted by the Tribunal.

This communication was sent to MTNL but this had not been challenged in the petition, BEST said. Hearing the petition recently, a bench headed by Chief Justice Mohit Shah refused to grant relief saying they were prima facie satisfied with the arguments of BEST that MTNL was not an 'industrial power user' but a commercial consumer.

HC rules in favour of BEST in MTNL tariff case

MTNL has calculated its charges from its consumers on the basis of tariff rate which was levied by BEST during Jan 2007 to May 2009.

The court also took into account the submission of BEST that MTNL have been paying electricity charges on the basis of rates applicable to commercial consumer right from 1987 to 2006 and again from June 2009 onwards. It, however, said that as far as past bills were concerned they were even for the period prior to May 2009.

MTNL has calculated its charges from its consumers on the basis of tariff rate which was levied by BEST during the relevant period from January 2007 to May 2009. The bench granted stay against recovery of amount by the power company on the basis of impugned bills for the period January 2007 to May 2009 and for any prior period. From June 2009 onwards, the court, however, ordered MTNL to pay on the basis of tariff rate applicable for commercial consumers.

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