Working of WBSETCL

8/13/2019 Working of WBSETCL

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AN OVERVIEW OF W.B.S.E.T.C.LThe West Bengal State Electricity Transmission Corporation Limited (W.B.S.E.T.C.L)

commenced from 1stApril, 2007. The Certificate of Incorporation of the company was issued

by the registrar of companies on 16thFebruary, 2007 and the certificate of commencement of

business was issued by the registrar of companies on 21st March, 2007. The company

consisted of 7 Directors (3- Executive Directors, 4- non Executive Directors).

FUNCTIONS

State Transmission Utility (STU) for the state of West Bengal and responsible forefficient, co-ordinated and economic planning of state power system.

Transmission licensee for design, construction, operation and maintenance of EHVtransmission system.

State Load Despatch Centre (SLDC) responsible for real time operation by optimumscheduling and despatch of electric power ensuring Grid security round the clock in

the state of West Bengal.

VISION

The most reliable and economical power transmission system in the country with thehighest system availability & quality and the least technical loses

MISSION

To exist to transmit power from generating stations to load centre throughtransmission corridors following grid code.

At the present time, reliable, strong, and steady organization, rather slow butregimented and hard working.

To be fast in decision making, goal oriented and shall be stable to meet challenges inchallenging circumstances.


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Internship at WBSETCL (6th

- 20th

November, 2013). Project Report. 1

SERVICE TO STAKE- HOLDERS

Customers Employees Recognised unions and associations Shareholders Financial institutions Economy Suppliers, service providers and contractors. Regulators Government and CEA Regional system operators and other transmission utilities Recognized media

INITIATIVES TAKEN UP BY THE COMPANY

Realignment of corporate organisational structure. Creation of centralised procurement department. Consolidated projects department. Creation of dedicated engineering department, Dedicated safety cell Dedicated IT department

ACHEIVEMENTS BY THE COMPANY

During last financial year the company touched the highest ever turnover ofRs.1026.34 cr.

It registered a net profit of Rs.333.02 Cr as against Rs.171.65 Cr. Of the previousyear.

The company maintained availability of 99.94% and transmission losses were onlyaround 3%, comparable with the best transmission utility in the country.


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ESTABLISHMENT OF W.B.S.E.T.C.L

400kv sub-stations -7nos. 220 kv sub-stations-19nos 132kv sub stations-77 nos 66kv sub-stations-8nos. Area offices-23 nos. Field zonal offices-7nos. Camp offices-12 nos.

Can WBSETCL called a STaTeArticle 12: Definition In this part, unless the context otherwise requires, the State includes

the Government and Parliament of India and the Government and the Legislature of each of

the States and all local or other authorities within the territory of India or under the control of

the Government of India

Significance of Article 12 lies in the fact that it occurs in Part III of the constitution which

deals with fundamental rights. The various articles in Part III of the Constitution have placed

responsibilities and obligations on the State vis-a vis the individual to ensure constitutional

protection of the individuals rights against the state, the right to enforce all or any of these

fundamental rights against the State as defined in Article 12

Govt. Companies, as defined in section 617 of the Companies Act 1956 came to be included

within the concept of State for the purpose of Article 12 of the Constitution. The SupremeCourt in its Judgement given in R.D Shetty Vs International Airport Authority of India held

that Corporations established by statute or incorporated under law are an instrumentality or

agency of the Govt and it would be subject to same constitutional or public law limitations as

the Govt. As a result whenever infringement of fundamental right occurs it may lead to

issuance of Writs under Article 32 and 226 of the Constitution.


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Article 32 of the Indian Constitution

Remedies for enforcement of rights conferred by this Part (1) The right to move the Supreme Court by appropriate proceedings for the

enforcement of the rights conferred by this Part is guaranteed

(2) The Supreme Court shall have power to issue directions or orders or writs,including writs in the nature of habeas corpus, mandamus, prohibition, quo warranto

and certiorari, whichever may be appropriate, for the enforcement of any of the rights

conferred by this Part

(3) Without prejudice to the powers conferred on the Supreme Court by clause ( 1 )and ( 2 ), Parliament may by law empower any other court to exercise within the local

limits of its jurisdiction all or any of the powers exercisable by the Supreme Court

under clause ( 2 )

(4) The right guaranteed by this article shall not be suspended except as otherwiseprovided for by this Constitution

ARTICLE 226 OF THE INDIAN CONSTITUTION

Notwithstanding anything in Article 32 every High Court shall have powers,throughout the territories in relation to which it exercise jurisdiction, to issue to any

person or authority, including in appropriate cases, any Government, within those

territories directions, orders or writs, including writs in the nature of habeas corpus,

mandamus, prohibitions, quo warranto and certiorari, or any of them, for the

enforcement of any of the rights conferred by Part III and for any other purpose

Few important LEGAL TERMS:

Vakalatnama:A Vakalatnama is a document in writing, appointing a lawyer or pleader to represent

the clients matter in a court of law. - No pleader Shall act for any person in any Court

unless he has been appointed for the purpose by such person by a document in writing

signed by such person or by his recognized agent or by some other person duly

authorized by or under a power-of-attorney to make such appointment.
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What is done after the Vakalatnama is given? After the Vakalatnama is given, it isfiled in court within the prescribed period. Every such appointment shall be filed in

Court and shall, for the purposes of sub-rule (1), be deemed to be in force until

determined with the leave of the court by a writing signed by the client or the pleader,

Caveat: Caveat is a Latin expression which means "let him or her beware". CAVEATis a plea made by the party to the dispute that the Authority(Court or a Public Officer)

should not decide the matter without hearing them. To avoid Judgement on one side

hearing this procedure is adopted.

Writ Petition: A writ petition is a filing that a party makes with an appeals court inorder to secure a speedy review of some issue. A writ petition is essentially a court

petition for extraordinary review, asking a court to intervene in a lower courts

decision.

The most common writ petitions are writs of mandamus and writs of prohibition.Writs of mandamus ask an appellate court to issue a court order requiring that a

lower court do something, while a writ of prohibition asks the court to prohibit a

lower court from doing or enforcing something. A writ of habeas corpus is used to

bring a prisoner or other detainee (e.g. institutionalized mental patient) before thecourt to determine if the person's imprisonment or detention is lawful A writ of

certiorariis a writ sent to the highest appellate court, which in the United States is the

Supreme Court. A writ of certiorari seeks Supreme Court review and decision in a

case that has exhausted its appeals and is otherwise at the end of the line.

Types of Courts/ Tribunals where our cases are instituted:

The Supreme Court of India is the highest judicial forum and final court of appealas established by Part V, Chapter IV of the Constitution of India. According to the

Constitution of India, the role of the Supreme Court is that of a federal court and

guardian of the Constitution.

Articles 124 to 147 of the Constitution of India lay down the composition and

jurisdiction of the Supreme Court of India. The Supreme Court is meant to be the last

resort and highest appellate court which takes up appeals against judgments of the

High Courts of the states and territories.


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The High Courts These courts have jurisdiction over a state, a union territory or agroup of states and union territories. High courts are instituted as constitutional courts

under Part VI, Chapter V, , Article 214 of the Indian Constitution. However, primarily

the work of most High Courts consists of Appeals from lower courts and writ

petitions in terms of Article 226 of the Constitution of India

District Courts: The District Courts of India are established by the State governmentsin India for every district or for one or more districts together taking into account the

number of cases, population distribution in the district. They administer justice in

India at a district level. These courts are under administrative control of the High

Court of the State to which the district concerned belongs. The decisions of District

court are subject to the appellate jurisdiction of the concerned High court.

The District Court is presided over by one District Judge appointed by the stateGovernment. In addition to the district judge there may be number of Additional

District Judges and Assistant District Judges depending on the workload. The district

court has appellate jurisdiction over all subordinate courts situated in the district on

both civil and criminal matters

Tribunal: A tribunal is a court of justice but different from the usual courts. Whilethe usual courts hear all kinds of cases, the tribunal is a court with the authority to

deal with particular problems or disputes. An administrative tribunal is a special court

with the authority to settle cases relating to the appointment and service conditions of

government employees.

Debt- Recovery Tribunal: The Debts Recovery Tribunal have been constitutedunder Section 3 of the Recovery of Debts Due to Banks and Financial Institutions

Act, 1993. The original aim of the Debts Recovery Tribunal was to receive claim

applications from Banks and Financial Institutions against their defaulting borrowers.

For this the Debts Recovery Tribunal (Procedure) Rules 1993 were also drafted.

Under the provision of The Consumer Protection Act 1986, quasi-judicialmachinery, namely, Consumer Forums at the district level and Consumer Dispute

Redressal Commissions at the State and National Level were setup with the objective

to make the fruits of this benevolent Act reach its wide target audience. An Executive

Finance Committee (EFC) was prepared to provide a turnkey solution at each of the


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district forum, state commission & national level, including linkages with respective

state and central governments.

The project aims at improving operational efficiency, co-ordination, accessibility,speed in judicial administration and to set Information Communication Technology

(ICT) infrastructure at Consumer Redressal forums all over India. It aims at

providing:

E-Governance, Efficiency, Transparency, To achieve time bound delivery of justice to consumers efficiency

Types of Litigations faced by the Company;

a. Service Matter: This can be related with both internal stakeholders (employees of

the Company) as well as the external stakeholders ( eg-who has applied for vacancies

in the Company). Incumbents can move to the Courts being aggrieved by

irregularities faced in terms of employment, non-employment or conditions of

employment, for eg- matters may be related to retirement benefits, such as delay

processing of gratuity etc.

b. Contract Matter: Either party can seek redress from the Court of Law due to

breach of terms and conditions of Contract. For eg-a contractor has been assigned to

deliver tower equipments within a stipulated period-but he leaves after delivering only

30% of the materials and that too without proper notice. The Company may move to

the Court seeking damages and may file a Money Suit. At times the bidder may also

move to the Court due to infringement of his Right to Equality-if he is aggrieved by

the fact that he is deprived of his right to get the Purchase Order during the tender

process.


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c. Issues pertaining to electricity matters:

i) Issues relating to service to the public/end-consumers:

The end-consumers can prefer petition before the Honble Court if they are

deprived of the service of the electricity. For eg- even after going through all the

requisite processes they are unable to get electricity connection for a considerable

period of time.

ii) Appellate Matters: Section 126 and Section 127 of the Electricity Act 2003

deal with unauthorised use of electricity and Appeal to Appellate Authority

respectively. Being aggrieved by order of the Appellate Authority or by the

Assessment of unauthorised use of Electricity incumbents may move to the

appropriate forum.


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elecTRIcITY acT 2 3PROVISIONS & PROCEDURE RELATING TO

ASSESSMENT,APPEAL & COMPOUNDINGASSESSMENT.

SECTION 126

Sub-section (1) Conditions precedent to assessment-

If on an inspection of any place or premises or; After inspection of the equipments, gadgets, machines, devices found connected or

used, or;

After inspection of records maintained by any person,The assessing officer comes to the conclusion that such person is indulging in unauthorized

use of electricity, he shall provisionally assess to the best of his judgment the electricity

charges payable by such person or by any other person benefited by such use.

CASE LAW 1:

S.126Provisional assessmentCharge of theft of electricityPrima facie case made out -

Disconnection immediately followed by provisional AssessmentOpportunity of hearing at

that stage not necessary. AIR 2010 (NOC) (Supp) 671 (Cal) (A).

CASE LAW 2:

Provisional assessment for unauthorized use of electricity Assessing Officer must be a

member of the inspection team at the time of detecting the pilferage or unauthorized use of

electricity so that he can pass order of assessment after visiting the site at the time of

detecting of illegality. Under s.135 only the officer authorized by the State Govt. of the

inspection team can lodge complaint under Cr PC. The Assessing Officer will pass final

assessment order after hearing the consumer which is appealable before appellate forum.


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There will be no violation of the principle of natural justice because the Assessing Officer is

also the complainant in the criminal case. The rule that nobody can judge of his own cause

cannot be inflexible rule of natural justice, the same can be moulded in the interest of justice.

Narayan Chandra Kundu Vs State of W.B. AIR 2007 (Cal) 298 (DB).

CASE LAW 3:

- S.126 - Provisional assessmentTheft of electricityDespite provision for fastening

criminal liability, authorities can invoke S.126 and determine electricity charges payable by

person using electricity unauthorizedly. AIR 2010 Raj 86(B).

ASSESSMENT.

SECTION 126.

Sub-section (2) - Order of assessment to whom to be served?

The order of provisional assessment shall be served upon the person in occupation orpossession or in charge of the place or premises in such manner as may be prescribed.

ASSESSMENT.

SECTION 126

Sub-section (3) Final assessment

The person, on whom a notice has been served shall be entitled to file objections, ifany, against the provisional assessment before the assessing officer,

Who(assessing officer) may, after affording a reasonable opportunity of hearing tosuch person, pass a final order of assessment of the electricity charges payable by

such person.

CASE LAW 4:

Provisional assessment for unauthorized use of electricitycompliance of s.126(3) The

object of opportunity of placing defense or hearing for provisional assessment and final

assessment by consumer at two stages are distinct. In case of provisional assessment, it is

the very issue whether he is guilty of unauthorized use of electricity or not and in the case

of final assessment, if the quantum of amount which he is required to pay as


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compensation and a fiscal preventive measure for committing such irregularity. It is

permissible to an assessing officer to cover both the aspects in the show cause notice

under s. 126(3). The conclusion with respect to unauthorized use of electricity is a

condition precedent for issuing provisional assessment notice and unless opportunity is

given, the question of assessment would not arise and would be violation of principles of

natural justice and arbitrary infringing Art. 14 of the Constitution. Ashok Kumar Vs

State of U.P AIR 2009 NOC 161 (AII); 2008(3) ALJ 383 (DB).

CASE LAW 5:

S.126(6)(b)Charge of theft of electricityAssessment OrderChallenge as toNo

documents or reports or evidence examined by assessing officer for arriving at

conclusions of regular and successive interferences with meter resulting in pi lferage of

energyNo proof to substantiate that accused resisted disconnection of service Writ

rightly allowed due to violation of principles of natural justice. AIR 2010 (NOC) (Supp)

674 (Cal).

CASE LAW 6:

- S.126- Provisional assessmentOrder not disclosing as to how quantum of electricity

used unauthorized had been arrivedConsumers were also not apprised that they were

entitled to file objection against provisional orderIn such case non-filing of no

objections cannot be ground to treat provisional order as final orderProvisional order

liable to be quashed being violative of rules of natural justice. AIR 2010 Raj 86 (A).

ASSESSMENT.

SECTION 126.

Sub-section (4) - Any person served with the order of provisional assessment, may,

accept such assessment and deposit the assessed amount with the licensee within seven

days of service of such provisional assessment order upon him: (Provided that in case the

person deposits the assessed amount he shall not be subjected to any further liability or

any action by any authority whatsoever.)*

* Proviso to sub-section (4) of the original act has been deleted by Amendment Act 2007


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ASSESSMENT.

SECTION 126.

Sub-Section (5)

If the assessing officer reaches to the conclusion that unauthorized use of electricity has

taken place,

The assessment shall be made for the entire period during which such unauthorizeduse of electricity has taken place

And if, however, the period during which such unauthorized use of electricity hastaken place cannot be ascertained, such period shall be limited to a period of twelve

months immediately preceding the date of inspection.

Sub-Section (6)

The assessment under this section shall be made at a rate equal to twice the tariff ratesapplicable for the relevant category of services specified in sub-section (5).

Explanation.- For the purposes of this section,o Assessing officer means an officer of a State Government or Board or

licensee, as the case may be, designated as such by the State Government.

For L&MV consumers- Station Managers. For Decentralized Bulk consumers- Divnl. Eng.(E)/ Supdt. Eng(E)

attached to Circle offices.

For Centralized Bulk Comsumers- Divnl. Eng.(E)/ Supdt. Eng(E)attached to Central Comml. Department.

CASE LAW 7

S.126(6)(a)Final AssessmentPilferage of energyJurisdiction of assessing authority

Assessing Officer must be designated as assessing officer by Govt. and must be part of

inspection team that determined unauthorized use of energyNone of members of inspection

team found to be designated officerAssessment made is badDirected to make fresh

assessment. AIR 2010 (NOC) (Supp) 671 (Cal) (B).


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COMPARATIVE CHART OF UNAUTHORIZED USE OF

ELECTRICITY WITH THEFT


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CASE LAW 8:

- S.126,Expl.(b)(v) Unauthorized use of electricity What amounts toConsumer

extending connection and using same for running its factoriesElectricity use for premises

other than those for which supply of electricity was authorizedIt amounts to unauthorized

use of electricity. AIR 2010 (NOC) 975 (Guj) (DB).

PROCEDURE

Notice of Inspection

A written communication addressed to the concerned consumer explaining thepurpose is necessary before entering the premises.(Reg. 8.3.3).

Provisional Assessment

The order of PA to be served within 48 hours of disconnection/inspection upon theperson in occupation or possession or in charge of the place or premises by the

assessing officer (Reg. 5.2)

Objection

A person not satisfied with the order of PA may file written objection with the AOwithin 15 days from the date of receipt (Reg. 5.3).

Final Assessment

Notice of hearing to reach atleast 72 hours before the schedule date and time ofhearing.

The person may appear in person or through a duly authorized representative. Order of FA to be passed within 30 days from the date of service of PA. Order of FA to be served within 4 working days from the date of order. However the order of FA may be passed ex-parte if the person does not attend the

hearing (Reg. 5.4).


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APPEAL TO APPELLATE AUTHORITY

SECTION 127

Sub-section (1): Any person aggrieved by a final order made under Section 126 may within

30 days of the said order, prefer an appeal in such form, verified in such manner and be

accompanied by such fee as may be specified by the State Commission, to an appellate

authority as may be prescribed.

Any person aggrieved by the order can prefer appeal. Appeal should be made within 30 days of the FA in form 5 accompanied by fee @ 0.5

% of the FA.

CASE LAW 9:

Right of preferring appeal is not restricted to the recorded consumer but any person aggrieved

by a final order made under section 126 including occupier enjoying electricity may approach

the appellate authority. Asit Kumar Palit Vs WBSEDCL AIR 2009 Cal.

CASE LAW 10:

Exercise of power of Appellate Authority when biased. If a person making an order in

exercise of power of original authority and also entertain an appeal against the said order and

in the process affirms his own order then no person of ordinary prudence can expect an

unbiased exercise of power of such appellate authority. The person exercising the power of

appellate authority was actually biased. Propriety demands that such officer should recluse

himself and refer the matter to competent authority for assigning the said appeal to any other

appellate authority. Bharnobari Tea and Industries Ltd. Vs State of W.B. AIR 2006 Cal

173; Cal LT 2006(2) HC 119.


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APPEAL TO APPELLATE AUTHORITY

SECTION 127

Sub-Section (2): No appeal against an order of assessment under sub-section (1) shall be

entertained unless an amount equal to half of the assessed amount is deposited in cash or by

way of bank draft with the licensee and documentary evidence of such deposit has been

enclosed along with the appeal.

Appeal will only be entertained if document of payment of 50% of FA is enclosedwith the appeal.

Sub-Section 3: The appellate authority referred to in sub-section (1) shall dispose of the

appeal after hearing of the parties and pass appropriate order and send copy of the order to

the assessing officer and the appellant.

The appeal shall only be disposed by passing a reasoned order after hearing theparties.

Copy of the order to be send to both assessing officer and the appellant.

Sub-Section 4: The order of the appellate authority referred to in sub-section (1) passed

under sub-section (3) shall be final.

The Act does not postulate any forum of the authority before which further appeal canbe preferred against the appellate order .

The only remedy available is to file Writ Petition under Article 226 of the IndianConstitution before the Honble High Court

Sub-Section 5: No appeal shall lie to the appellate authority referred to in sub-section (1)

against the final order made with the consent of the parties.

If FA is issued on consent of both the parties no appeal can be preferred against suchFA.

In such event minutes of the hearing should be got signed by both the parties.


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Sub-Section 6: When a person defaults in making payment of assessed amount, he, in

addition to the assessed amount shall be liable to pay, on the expiry of 30 days from the date

of order of assessment, an amount of interest at the rate of 16% per annum compounded

every 6 months

COMPOUNDING OF OFFENCES

SECTION 152

Sub-Section 1: Notwithstanding anything content in the Code of Criminal Procedure 1973 (2

of 1974), the Appropriate Govt. or any officer authorized by it in this behalf may accept from

any consumer or person who committed or who is reasonably suspected of having committed

an offence of theft of electricity punishable under this Act, a sum of money by way ofcompounding of the offence as specified in the Table below:

Provided that the Appropriate Govt. may, by notification in the Official Gazette, amend

rates specified in the Table above.

In respect of M&LV consumers of WBSEDCL Zonal Manager is the AuthorizedOfficer to compound any offence of theft of electricity vide Notification No.

64/Power/III/ dt. 12.03.2004 of the Special Secretary Power Dept.

The order of compounding can be issued anytime before the judgment is pronounced. The State Govt. has not yet amended the rate specified in the table.

Sub-Section 2: On payment of the sum of money in accordance with sub-section (1), any

person in custody in connection with that offence shall be set at liberty and no proceedings

shall be instituted against such consumer or person in any criminal court.

Any person in custody shall be set at liberty. No proceedings shall be continued in any criminal court.

Sub-Section 3: The acceptance of the sum of money for compounding an offence in

accordance with sub-section (1) by the Appropriate Govt. or an officer empowered in this


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RIGHT OF WAY ROW) AND WBSETCLThe facts of the matter have been drawn mainly from the order of a writ petition.

The Dispute arose in connection with action of the licensee proposing erection of tower and

drawal of overhead lines on and through the land of the private land owners.

The issues involved in this dispute are commonly seen almost in all ROW related disputes

being encountered by project management and thus judicial settlement will help understand

the implications of legal provisions to guide the course of action.

LEGAL PROVISIONSUnder Repealed Acts

Prior to enactment of Electricity Act, 2003 the Indian Electricity Act, 1910 andElectricity (Supply) Act, 1948 were in force and there were various provisions

governing erection of transmission lines or other connected work through, in or upon

or under the private lands.

As per Sec. 12 of the I. E. Act, 1910 the consent of the local authority or of theconcerned owner is necessary to lay down or place any electric line.

According to Sec. 51 of the Indian Electricity Act, 1910 the licensee if authorised bythe appropriate Govt. can place electric supply lines, appliances & apparatus for

transmission of energy notwithstanding the provisions contend under in Sec. 12 to 16

and Sec. 18 & 19 of the said Act.

Sec. 28 of the Electricity (Sup.) Act, 1948 provided for preparation and sanction ofscheme relating to laying of transmission line.

According to Sec. 29 (2) of the Electricity (Sup.) Act, 1948 that every such schemeshould be published in the official gazette and in local newspapers granting not less

than 2 months time for making representation on such scheme.

The proviso to Sec. 42 (1) of the Electricity (Sup.) Act, 1948 provided that where asanctioned scheme does not make a provision for placing electric supply lines

exempting application of Sec. 12 to 16, 18 & 19 of the I. E. Act, 1910 the provisions

contained therein shall apply.


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SEC 67. Provision as to opening up & breaking EA2003 up of streets, railways &

tramways

1. A licensee may, from time to time but subject always to the terms and conditions ofhis license, within his area of supply or transmission or when permitted by the terms

of his license to lay down or place electric supply lines without the area of supply,

without that area carry out works.

2. The appropriate Govt. may, by rules made by it in this behalf, specify (rulesregarding the works of licensee)

3. A licensee shall, in exercise of any of the powers conferred by or under this sectionand the rules made thereunder, cause as little damage, detriment and inconvenience as

may be, and shall make full compensation for any damage, detriment or

inconvenience caused by him or by any one employed by him.

4. Where any difference or dispute including amount of compensation under sub-section(3) arises under this section, the matter shall be determined by the Appropriate

Commission.

5. The Appropriate Commission, while determining any difference or dispute arisingunder this section in addition to any compensation under sub-section (3) may impose

a penalty not exceeding the amount of compensation payable under that sub-section.

SEC 164. Exercise of powers of Telegraph Authority in certain cases

The Appropriate Govt. may by order in writing, for the placing of electric lines orelectric plant for the transmission of electricity or for the purpose of telephonic or

telegraphic communications necessary for the proper coordination of works, confer

upon any public officer, licensee or any other person engaged in the business of

supplying electricity under this Act, subject to such conditions and restrictions, if any,

as the Appropriate Govt. may think fit to impose and to the provisions of the Indian

Telegraph Act, 1885 (13 of 1885), any of the powers which the telegraph authority

possesses under that Act with respect to the placing of telegraph lines and posts for

the purposes of a telegraph established or maintained, by the Govt. or to be so

established or maintained.


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RIGHT OF WAY vis-a-vis EASEMENT

For electric transmission line right-of-way is a strip of land that we use to construct,operate, maintain and repair transmission line facilities. A transmission line usually is

centered in the right-of-way. The width of a right-of-way depends on the voltage of

the line and the height of the structures. The right-of-way generally must be clear of

tall-growing trees and structures that could interfere with a power line.

An easement is an interest in real property that gives the transmission licensee thelegal right to use the property for the specific purpose of constructing, operating and

maintaining a transmission line facility. When building or upgrading a transmissionline, the licensee typically acquire access to and use of land by virtue of the Indian

Telegraph Act (Sec. 10, 11 & 18), rather than purchasing the property outright.

Landowners retain ownership of the real property, but its use is limited to activities

that do not compromise the safety and reliability of the lines.

CONTENTION OF THE AGGRIEVED PERSONS

Originally the line was sought to be laid on and over the land belonging to otherswhich was subsequently changed under influence and now intended to draw the lines

through the lands of the persons raising dispute.

The officials of the licensee entered into their lands without obtaining their consentand without following the process known to law.

In spite of objection raised the licensee proceeded further in the said lands. The licensee were bound to initiate appropriate proceedings for acquisition of the

lands or the consent of the owners ought to have been obtained by private negotiationsbefore entering into the properties.

No scheme was framed and published as required under the law before proceeding tolay electric lines.


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LICENSEES(WBSETCL) AVERMENTS

The appropriate Government has authorized the licensee to place electricity lines inaccordance with the Indian Telegraph Act, 1885.

The scheme was drawn to improve and stabilize the voltage and power systemnetwork.

A notification stood issued and published in the official gazette notifying thescheme.

No objections were received pursuant to the gazette notification. Series of meeting were held in the office of the Sub-Collector and most of the

persons on whose lands the lines were to be laid attended and gave consent. Even

some of the land owners under present dispute also attended the meeting and agreed.

Marking for construction of lines was started after service of notice to all concernedland owners by registered post followed by hanging a notice at Panchayat Office.

ARGUMENTS OF THE PARTIES

Licensee

The licensee had not received any objection in response to the notification and

therefore as per power conferred by the state Govt. it was entitled to exercise all the

powers possessed by the telegraph authority under the Indian Telegraph Act, 1885 for

the purpose of placing the transmission line by entering the lands of the landowners

without acquiring the same.

Land Owners

The notification was not a sanctioned scheme as required u/s 42 of the Electricity

(Supply) Act, 1948.

The said notification was lacking material particulars relating to proposed route

denying the aggrieved person to raise objection and thus not in compliance to sec. 29

(2) of the said Act.


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As there was no valid sanctioned scheme the licensee cannot proceed without

obtaining the consent of the owners as required u/s 12 of the Indian Electricity Act,

1910.

CASE LAWS RELIED UPON

Bhaskara Housing (P) Ltd. Vs. APSEB, Hyderabad

A cumulative reading of provisions of sub-section (1) of sec 42 of the Electricity(supply) Act, 1948 with that of proviso make it apparently clear that if the sanctioned

scheme provides for any of the things contemplated under sections 12 to 16, 18 & 19

of the Indian Electricity Act, 1910 the officers of the Board can exercise similar

powers conferred upon the authorities of the Telegraph Department under PartIII of

the Indian Telegraph Act, 1885.

In the instant case, since the sanctioned scheme provides for laying of lines andconstruction of towers, it should be held that the Board and its officers have the power

to invoke the provisions of PartIII of the Indian Telegraph Act, 1885 and, therefore,

prior consent is not necessary as required under sec 12 of the Indian Electricity Act,

1910.

B. Krishna Mandadi Vs. Power Grid Corp. of India Ltd., Hyderabad

A generating company engaged in generation, transmission and supply of electricity isempowered under the provisions of Electricity (Supply) Act, 1948 to lay electric

poles, construct transmission towers on any private land without giving any notice

and without causing damage to the property provided there is a scheme published as

required under sec 10 of the Telegraph Act read with sec 42 (1) & (2) of the

Electricity (Supply) Act, 1948. However, it has to pay compensation for the damage

sustained by the owners of the land or owners of the crops.

Bharat Plywood & Timber Products (P) Ltd. Vs. Kerala SEB, Trivandrum

A full Bench of High Court of Kerala having interpreted the scope & object ofSections 12 & 51 of Indian Electricity Act, 1910 held that a licensee who has not been

empowered by the State Government under Section 51 of the Indian Electricity Act,

1910 cannot place any electric supply lines in or over any property without the


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d) repair, alter or remove the same; ande) do all other acts necessary for the due supply of energy.

2. Nothing contained in sub-section (1) shall be deemed to authorize or empower alicensee, without the consent of the local authority or of the owner or occupier

concerned, as the case may be, to lay down or place any electric supply-line, or other

work in, through or against any building, or on, over or under any land not dedicated

to public use whereon, wherever or whereunder any electric supply-line or work has

not already been lawfully laid down or placed by such licensee:

Comparison of corresponding Sections of IE Act, 1910 &

EA Act, 2003

As could be seen though sec 67 (1) of the Electricity Act, 2003 is identical to sec 12

(1) of the Indian Electricity Act, 1910, whereas sec 67 (2) of the EA, 2003 varies from

sec 12 (2) of the repealed IE Act, 1910. Section 67 (2) does not say that the consent

of the owner or lawful occupier is mandatory but the matters where the property of

other persons are affected by the works of the licensee have been left to the

appropriate Govt. by way of rules in exercise of its rule making power whereas u/s 12

(1) no work can be carried out without the consent of the owner / occupier.

Powers of the Telegraph Authority assigned to Licensee:

On an analysis of Section 67 & Section 164 of the Electricity Act, 2003, it is apparent

that whenever an order is passed by the appropriate Government in exercise of the

powers under Section 164 of the Electricity Act, 2003 for the placing of electric lines

for the transmission of electricity, conferring upon any public officer, licensee or any

other person engaged in the business of supplying electricity any of the powers which

the telegraph authority possesses under the Indian Telegraph Act, 1885 such public

officer, licensee or any other person engaged in the business of supplying electricity

stands in the same position as regards the exercise of power as the telegraph authority

under the Indian Telegraph act, 1885.

However, in the absence of such an order under Section 164 of the Electricity Act,2003, if a licensee i.e. a person who has been granted a licensee to transmit electricity


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The Dispute involved the question whether proceedings by the District Magistrate is

mandatory on the face of resistance in executing erection of tower & drawal of lines

where opportunity of raising objection was initially given.

Case laws relied by the Petitioner

Bharat Plywood & Timber Products (P) Ltd. Vs. Kerala SEB, Trivandrum

As matter stands, we have to come to the conclusion when a public officer, licensee orother person on whom the powers under the Telegraph Act have been conferred by

the State Govt. acting under sec. 51 of the Electricity Act is resisted or obstructed, that

authority has no alternative but to approach the District Magistrate under sec. 16 (1)of the Telegraph Act for an order enabling him to exercise those powers.

T. Narayanan vs. The Power Grid Corporation

Sec. 16 (1) of the Indian Telegraph Act clearly speaks of the permission of the DistrictMagistrate when there is a resistance or obstruction to the exercise of power under

sec. 10. The requirement of the permission from the District Magistrate is clearly

stipulated under sec. 16 of the said Act.

Arguments of the Licensee

Prior to issuance of notification a petitioner became the owner of that particular plotover which lines are proposed to be drawn. Thus he had the opportunity to raise

objection within the time frame. Since he has not availed the opportunity the writ

petition is not maintainable.

The licensee has complied with the direction of the appropriate Govt. imposed underse. 68 (3) of the EA, 2003 and once such conditions were fulfilled the licensee can

proceed for execution of the work by exercising statutory power.

If it is to be conceded that a property owner will have another opportunity to resist /obstruct once the work had started and the right of resistance obstruction is thus

recognized a project can easily be frustrated by raising objection at regular intervals

by the land owners at different earmarked plots.


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It is unbelievable that the petitioner was unaware of installation of proposedtransmission line and therefore by not raising any objection at the proper time is guilty

of acquiescence precluding him in law from contending that he has a right under sec.

16 (1) of the Telegraph Act, 1885.

Relevant Legal Provisions

The Electricity Act, 2003:

Sec. 68Overhead lines

1. An overhead line shall, with prior approval of the Appropriate Govt., be installed orkept installed above ground in accordance with the provisions of sub-section (2).

2. The provisions contained in sub-section (1) shall not applya) in relation to an electric line which has a nominal voltage not exceeding 11 kv. and is

used or intended to be used for supplying to a single consumer;

b) in relation to so much of an electric line as is or will be within premises in theoccupation or control of the person responsible for its installation; or

c) In such other cases, as may be prescribed.3. The Appropriate Govt. shall, while granting approval under sub-section (1), impose

such conditions (including conditions as to the ownership and operation of the line) as

appear to it be necessary.

The Appropriate Govt. may vary or revoke the approval at any time after the end of

such period as may be stipulated in the approval granted by it.

SEC 164. Exercise of powers of Telegraph Authority in

certain cases

The Appropriate Govt. may by order in writing, for the placing of electric lines or

electric plant for the transmission of electricity or for the purpose of telephonic or

telegraphic communications necessary for the proper coordination of works, confer

upon any public officer, licensee or any other person engaged in the business of


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Absolute authorization without any condition was conferred on the licensee herewithout restrictions / limitations envisaged in the other provisions contained under

part-III of the Telegraph Act.

Sec. 10 thereof grants legal sanction to commit trespass on private property subject

only to the condition that while committing such trespass, the licensee shall cause as

little damage as possible and shall pay full compensation to all persons interested for

any damage.

Sec. 16 (1) contemplates the obligation of the Telegraph Authority to seek the

permission of the District Magistrate if it faces resistance / obstruction. However

inhibition of suo-moto action by the District Magistrate in case of resistance /obstruction created by the property owner cannot be inferred. It does not speak of a

power exercisable by the telegraph authority.

The licensee has been conferred similar powers which the telegraph authority

specially enjoys with regard to placing of transmission line which does not necessarily

follow that all rights and liabilities of licensee are governed by the Telegraph Act,

1885 unless a clear stipulation is contained in the order of authorization.

The said authorization cannot therefore be construed as one qualified by and /

or subject to provisions contained either in sec. 16 & sec. 17 of the Telegraph Act.

On the contrary while conferring on the licensee the said authorization says that it is

subject to compliance by it of the requirement of the provisions of the Electricity Act

and the Rules made thereunder.

In such case it might so happen that availing of the first opportunity a property ownermay succeed in having his request for relocation of a tower accepted and, thereafter,

in purported exercise of right conferred by se. 16 (1) may offer or create resistance /

obstruction when the process to erect the tower is undertaken. If the writ petitioners

argument is to be accepted, he may even after erection of the tower, seek relocation

thereof by taking recourse to se. 17 of the 1885 Act. That, in my view, would lead to

manifest absurdity and defeat the purpose.


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The construction of a statute in a manner that offends the sense of justice must

yield to a construction i.e. just reasonable and sensible. Statute has to be read

reasonably and not in such a manner that results absurdity. In a clear case of

construction producing impracticable results it is open to the court to adopt that

construction that serves the ends of reasonableness and fairness and promotes justice.

Even when two constructions are equally open the statute are to be harmoniously

construed to ensure that one provision does not come in conflict with the other and the

courts would be loath to choose the construction which introduces absurdity,

uncertainty, friction or confusion in working of the system and prefer to adopt that

alternative construction which is consistent with smooth working of the system and

produces the desirable result.

Once opportunity to object is given prior to commencement of exercise of sec. 10powers by the licensee it cannot validly be contended the property owner would have

again the right to resist / obstruct after execution of the work is commenced by the

licensee. If that right is to be recognized although no objection was raised in spite of

opportunity duly given, that would clearly be contrary to the result desired to be

achieved by conferment of such power.

It is inconceivable that the statute recognizes the scope of raising objection at

3 (three) stages by the petitioner 1stat prior to commencement of execution, the 2ndat

the time the power under sec. 10 is exercised and the 3rd after the execution is

complete that would render the statutory provision nugatory.

The right available to a property owner to resist / obstruct under 16 (1) of theTelegraph Act would be lost forever and thus not survive once he fails to avail the

opportunity to object in response to the notification issued by the licensee.

The court of writ ought not to prevent a licensee from performing an act recognizedand permitted by the statutory provisions based on judicial interpretation of statutes in

a manner that destroys the very essence of enacting laws honestly, fairly and

equitably.

I also find sufficient merit in the submission of the licensee that in the eventuality ofany inconsistency between the Electricity Act and The Telegraph Act so far as grant

of opportunity to a property owner to object is concerned the Electricity Act would

prevail.For reasons above the writ petition fails.


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POWER FOR TELEGRAPH AUTHORITY TO PLACE AND

MAINTAIN TELEGRAPH LINES AND POSTS:

The Indian Telegraph Act, 1885:

The telegraph authority may, from time to time, place and maintain a telegraph line

under, over, along, or across, and posts in or upon, any immoveable property:

Provided that

a) the telegraph authority shall not exercise the powers conferred by this sectionexcept for the purpose of a telegraph established or maintained by the Central

Government, or to be so established or maintained;

b) The Central Government shall not acquire any right other than that of useronly in the property under, over, along, across, in or upon which the

telegraphic authority places any telegraph line or post; and

c) except as hereinafter provided, the telegraph authority shall not exercise thosepowers in respect of any property vested in or under the control or

management of any local authority, without the permission of that authority;

and

d) in the exercise of the powers conferred by this section, the telegraph authorityshall do as little damage as possible, and when it has exercised those powers in

respect of any property other than that referred to in clause (c), shall pay full

compensation to all persons interested for any damage sustained by them by

reason of the exercise of those powers.

Authorisation under Sec. 164 - The Govt. Of West Bengal vide Notification No. 285Power/III/3R04/2005 published in the Kolkata Gazette on 16th August, 2005 authorised the

erstwhile WBSEB to exercise all the powers vested in the Telegraph Authority under Part-III

of the Indian Telegraph Act, 1885 in respect of the electrical lines and electrical plants

established or maintain or to be so established or maintain for the transmission and / or

supply of electricity or for the purpose of telephonic or telegraphic communication necessary

for the proper co-ordination of the work within the licensed area of the WBSEB.


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3. At the outset, we may observe that no dispute is raised before us by both sides regarding

the method to be adopted for arriving at the just compensation payable, namely, the method

of determining the present value of an annuity which would yield a fair return for a specific

period. The limited area of dispute is regarding the rate of return. The learned counsel for the

petitioner contended that the rate of return that should be adopted is the one that can be

obtained in a stable economy and not the interest offered by the Bank from time to time,

which would vary due to serval reasons Including the effect of inflation. According to the

petitioner, 5% return adopted by 1961 Ker LT 238 : (AIR 1961 Kerala 237) is the real rate of

interest which could be obtained in a stable economy. After the judgment of the Full Bench in

1981 Ker L T 646 : (AIR 1981 Kerala 223), the Electricity Board had been uniformly

adopting 10% as the rate of return, which according to the petitioners, resulted in substantial

reduction in the quantum of compensation in respect of cutting of fruit bearing trees. In the

present case, dispute that remains for consideration is one relating to compensation for

cutting down palms.

3A. In order to substantiate his contention, learned counsel made available a statement

working out the amount of compensation payable by applying interest at the rate of 10% and

5%, The gross and net yield of coconuts and its price adopted in the statement are not in

dispute. Coconut prices as given in pages 266 and 267 in the "Coconut Statistics" published

by the Coconut Development Board (Ministry of Agriculture, Govt. of India, "Kerala

Bhavan", Cochin-11.

4. The above would show that if 20 years purchase price is taken at 5% return per annum and

by applying the multiplier 12.46 as per Parks table, the entire amount of compensation will be

depleted by the 12th year. But, if 10% return per annum is taken and if multiplier of 8.51 as

per Parks table is applied, by the 8th year, the entire amount will be depleted. In the case of

fruit bearing trees like coconut and arecanut which have got a life span of more than 70 years,

if the entire amount of compensation is to be depleted by the 8th year, the owner of the tree

will suffer great prejudice. The higher the percentage of return per annum, lesser will be the

present value of the annuity. It is contended by the learned counsel for the revision petitioner

that this aspect has not been taken Into consideration at all, by the Full Bench in 1981 Ker L

T 646 : (AIR 1981 Kerala 223). Therefore, according to the petitioner, the Full Bench

decision requires reconsideration.

5. The bone of contention between the parties is whether inflation is an element to be taken

into consideration while computing the present purchase value of future annuity. According

to the petitioner, if inflation is not taken into consideration, the lumpsum paid will not

represent an amount as nearly as possible full compensation for the injury which the claimant


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has suffered. Adopting of real rate of interest or Interest obtainable in a stable economy will

take care of the effect of inflation. On the other hand, the respondent-Board would contend

that the rate of interest that has to be taken into consideration is the one offered by the Banks

at the relevant period. If a lesser rate of interest is taken into consideration, the claimant will

be over-compensated. According to the respondent, inflation is not a component to be taken

into consideration while com-puting the compensation.

6. Before we embark on a discussion on the various decisions relied on by both sides, we may

point out that both sides have no case that a different annuity method than that is applied to

cases where compensation is granted for death or personal injury, should be applied in cases

where compensation for cutting of fruit bearing trees is to be paid. As a matter of fact, most

of the cases relied on by both sides relate to fixing of compensation for death or personal

injury.

7. What is meant by annuity method, has been explained by Lord Lloyd of Berwick in

Wells v. Wells, (1999) 1 A. C. 345in the following manner:

"But to simplify the illustration one can take an average annual cost of care of 10.000/- on a

life expectancy of 20 years. If one assumes a constant value for money, then if the Court were

to award 20 times 10.000/- it Is obvious that the plaintiff would be over-compensated. For the

10,000/- needed to purchase care in the twentieth year should have been earning interest for

19 years. The purpose of the discount is to eliminate this element of over-compensation. The

objective is to arrive at a lump sum which by drawing down both, interest and capital will

provide exactly 10,000/- a year for 20 years, and no more. This is known as the annuity

approach. It is a simple enough matter to find the answer by reference to standard tables. The

higher the assumed return on capital, net of tax, the lower the lump sum. If one assumes a net

return of 5 percent, the discounted figure would be 124,600/- instead of 200,000. If one

assumes a net return of 3 per cent, the figure would be 148.800/-."

8.In Kerala State Electricity Board v. Varghese Thomas,1961 Ker L T 238 :(AIR 1961

Kerala 237), Division Bench considered different methods for assessing the compensation for

destroying fruit bearing standing trees while drawing the electric line. The Bench took the

view that the rule of capitalisation prevalent in Travancore area In early times at 8 and 1/3

years' purchase, based as it is on 12% interest, cannot be followed at this distance of time. It

was then observed that "having regard to the condition of the money market and the value of

the security afforded by investment on land, which, as is generally held, is inferior to what

are called gilt-edged securities, we venture to think that a rate of interest at 5% p.a. may be

considered to be reasonable and fair from all points of view". Then, the Court proceeded to

consider the rule of capitalisation adopting the number of years the tree was expected to bear
http://indiankanoon.org/doc/635911/http://indiankanoon.org/doc/635911/http://indiankanoon.org/doc/635911/http://indiankanoon.org/doc/635911/


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fruits as the multiplier. It was then observed that the choice of multiplier in the above manner

is not valid, for, it gives the owner of the tree immediately and in a lump, without any

deduction, what represents the usufruct for entire period during which the trees would have

borne fruit, which he cannot justly claim. Then the Bench proceeded to find that the only

principle that can be accepted is to ascertain the value of annuity which represents a fair

return on the amount at 5% p.a. While adopting 5% return, the Court made reference to the

rate of interest sanctioned by the provisions of Kerala Agricultural Debt Relief Act, 1958, (

Act 31 of 1958) as 5%. It was then noted that this idea had been recognised in a very early

enactment, Malabar Compensation for Tenants' Improvements Act, 1899 (Madras Act 1 of

1900).

9. In order, to find out the multiplier, it was held that Parks table would be helpful. It was

then observed that the productive life of various categories of fruit bearing trees, as a matter

of common knowledge and experience, though subject to variations depending on local

conditions, can be estimated, as also the age of a particular tree at the time of its destruction.

The concept of 'real interest rate is not seen discussed in the above judgment, even though the

principle is applied. It is observed by Lord Diplock in Cookson v. Knowles, (1979) A. C.

556, "in times of stable currency, the multipliers that were used by judges ..... were

appropriate to interest rates of 4 per cent to 5 per cent whether the judges using them were

conscious of this or not."

10. Now, we will consider what is meant by 'real rate of interest' and its relevance in

computation of compensation. Prof. Paul A. Samuelson defines 'real interest rate' as the

"money interest rate" minus "the percentage price rise". Thus, if the money rate is 9 per cent

and the annual price rise is 7 per cent, then the true real rate of interest is 9 - 7 = 2 per cent.

(See Economics, by Paul A. Samuelson, 11 th Edition (International Student Edition) page

566.)

11. Before we go to 1981 Ker. LT 646 :(A1R 1981 Kerala 223) (FB)supra, we may refer to

another decision of Subramonian Potti, J. (as he then was) rendered earlier to the Full Bench

decision. In Kerala State Electricity Board v. Williams. 1981 Ker L T 95, the learned

Judge considered the question of computation of compensation for fruit bearing trees which

are felled for the purpose of drawing electric line. It was observed that the principle to be

followed is not one of capitalisation, for allowance would have to be made for accelerated

payment. According to learned Judge, compensation payable ought not to be the capitalised

value, but only the present value of annuity at fair current rate of interest which represents the

annual net yield. It is to be noted that reference was not to 'fair rate of interest' but to 'fair


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"If we capitalise the income for the number of years during which the tree is expected to yield

in future at the prevalent rate of interest the capitalised value will represent not only the

return for these years, but in addition the capital that would remain intact at the end of the

period. To, put the same idea in a different way, it would represent such recurring return for

all time and not for the limited period during which alone the tree would have continued to

yield income. Therefore, that would not be just equivalent of the compensation. If 5% return

would be a reasonable return and the trees would normally be executed to yield, say for 25

years more what is paid as compensation must yield the annual return at 5% which would be

equivalent of what the owner of the trees would have obtained had these trees continued to

stand in the property for 25 years but since the trees would cease to yield income at the end of

25 years the amount paid as compensation must exhaust itself by the end of that period. In

other words, it will be as if the amount of income is received only for a period of 25 years. In

that event, the determination should be as if an annuity for 25 years is provided for. What

amount invested today will yield annuity for a specified period will have to be computed. The

present value of recurring payments for a specified number of years will have to be worked

out. It will be easy to work it out on the basis of the valuation tables provided in the

Appendix in "parks on Valuations Land and Houses." The present value of Re. 1 per annum

at specified rates of interest return for a specified number of years could be easily found from

the table. That would serve as the basis for determining what such value will be applying the

multiplier representing the specified number of years."

The above would clearly show that the view taken by the Bench on the method of computing

compensation is in consonance with the view taken in , 1961 Ker LT 238 : (AIR 1961

Kerala 237) supra. Reference was made by the Bench to the observation in, 1961 Ker LT

238: (AIR 1961 Kerala 237) that a rate of interest at 5% per annum may be considered to be

reasonable and fair, from all points of view.

Then the Bench proceeded to observe:

That the reasonable interest rate does not continue to be 5% cannot be a matter on which

there is scope for controversy. ..... . . The last decade saw unprecedented inflation in this

country. The interest rates on loans advanced by Banks have been steadily on the increase.

The interesl rates on fixed deposits have also been steadily increasing over the last 10 years.

While the Full Bench of this Court noticed 7% as the ruling rate on Fixed Deposits in 1973 it

has risen upto 10% today and it is apparently receiving further attention. Any prudent man

expects to receive a return not less than what he would receive on a deposit for a term of 5

years or so in a Nationalised Bank."


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Thereafter, reference was made to the rate of interest on term deposit for a term above 5 years

which was 10% from 22-7-1974, 9% from 1-8-1978 and 10% from 13-9-1979. Finally, the

Bench observed that it will be safe to adopt the return on a fixed deposit for usual period of

63 months as reasonable anticipated return on a long term basis on a safe and prudent

investment. The Bench adopted the rates shown in the table referred above as interest rates

for the respective years as reasonable rates. According to the learned Judges, it is neither 5%

as contended by the claimants nor 10% in all cases as contended by the Board. The rate of

interest on term deposit for a period of 63 months prevalent on the date when compensation

becomes due will be the relevant date,

13. The above would clearly show that the Bench had totally ignored the effect of Inflation

and proceeded to accept the Bank interest rate as the fair return. The question whether the

effect of inflation has to be taken into consideration while quantifying the damages for death

and personal Injury had been a mooted issue for a long time In the English Courts. There was

difference of opinion between the Judges on this issue. But, even in those cases where the

view taken was that the effect of future inflation cannot be taken into consideration, it has

been observed that a lower rate of interest obtainable in a steady economy should be adopted

and if it is so done, the effect of inflation will be automatically taken care of.

RECENT DEVELOPMENTSRecently a case precedent of the Honourable Patna High Court has surfaced in the field of

academic interest. In Ram Naresh Singh vs. PGCIL, the Ld counsel on behalf of the

petitioner has argued that the massiveness and extent of foundation in case of a telegraph line

and that of an electricity transmission line cannot be equated under the same roof. In case of

telegraph posts, single monopole posts are required to be erected whereas in electricity

transmission the post required for overhead lines are much massive with a minimum of four

base-stands.

The Ld bench being satisfied on this arguments, gave decision on favour of the petitioner and

PGCIL lost the same case. Moreover in 2013 on the successful completion of 150 years of

the Indian Post , the validity of the Telegraph Act, 1885 is also becoming questionable.

In any situation whatsoever the present case is pending as an appeal before the honourable

apex court in India. The precedent that is yet to release from the pending decision of this case

is long awaited and may become a milestone in the fate of WBSETCL.


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Any other establishment or class of establishment employing 20 or more persons which

may be specified by Central Government by notification in official gazette.Central

Government can also apply provisions of the Act to any establishment employs less then 20

persons [Section 1(3)].

Even if the provisions of PF Act are not applicable in a particular establishment, if employer

and majority of employees agree, the Central Provident Fund Commissioner can apply the

provisions to that establishment by issuing a notification in official Gazette [Section 1(4)].

The main provisions of the Act are:-

The Act aims to provide for institution of provident funds, family pension funds and

deposit linked insurance funds for the employees in the factories and other establishments.

Accordingly, three schemes are in operation under the Act. These schemes taken together

provide to the employees an old age and survivorship benefits, a long term protection and

security to the employee and after his death to his family members, and timely advances

including advances during sickness and for the purchase/ construction of a dwelling house

during the period of membership. These three schemes are as follows:-

1. Employees' Provident Fund Scheme, 1952

2. Employees' Deposit Linked Insurance Scheme, 1976

3. Employees' Pension Scheme, 1995 (replacing the Employees' Family Pension

Scheme, 1971)

The Central Government may by notification in the Official Gazette constitute a

Central Board of Trustees for the territories to which this Act extends. Also, the Government

may constitute an Executive Committee to assist the Board in the performance of its

functions.

The contribution which shall be paid by the employer to the fund shall be eight and

one-third per cent of the basic wages, dearness allowances and retaining allowance (if any)

for the time being payable to each of the employees. While, the employees' contribution shall

be equal to the contribution payable by the employer in respect of him and may if any

employee so desires and if the Scheme makes provision therefore be an amount not

exceeding eight and one-third per cent of his basic wages, dearness allowances and retaining


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allowance (if any), subject to the condition that the employer shall not be under an obligation

to pay any contribution over and above his contribution payable under the Act.

The Central Government may by notification in the Official Gazette constitute one or

more Employees' Provident Funds Appellate Tribunal to exercise the powers and discharge

the functions conferred on such Tribunal by this Act and every such Tribunal shall have

jurisdiction in respect of establishments situated in such area as may be specified in the

notification constituting the Tribunal.

No employer in relation to an establishment to which any scheme applies, shall by

reason only of his liability for the payment of any contribution to the fund, or any charges

under this Act or the scheme, reduce whether directly or indirectly, the wages of any

employee to whom the scheme applies or the total quantum of benefits in the nature of old

age pension gratuity provident fund or life insurance to which the employee is entitled.

Whoever for the purpose of avoiding any payment to be made by himself under this

Act or of enabling any other person to avoid such payment, knowingly makes or causes to be

made any false statement or false representation, shall be punishable with imprisonment or

with fine or with both.

THE EQUAL REMUNERATION ACT

It is enacted to give effect to the provision of Article 39 of the Constitution of India which

contains a directive principle of equal pay for equal work for both men an women. The Act

provides for the payment of equal remuneration to men and women workers for the same

work or work of a similar nature and for the prevention of discrimination on the ground of

sex against women in the matter of employment.

The Equal Remuneration Act, 1976 aims to provide for the payment of equal remuneration to

men and women workers and for the prevention of discrimination, on the ground of sex,

against women in the matter of employment and for matters connected therewith or incidental

thereto. According to the Act, the term 'remuneration' means "the basic wage or salary and

any additional emoluments whatsoever payable, either in cash or in kind, to a person

employed in respect of employment or work done in such employment, if the terms of the

contract of employment, express or implied, were fulfilled".


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APPLICATION OF THE MINIMUM WAGES ACT,

1948 IN W.B.S.E.T.C.L

The main object of the act is to secure the welfare of the workers in a competitive market by

providing for a minimum limit of wages in certain employments. The act contemplates that

minimum wages rates must ensure not only the mere physical need of the worker which

would keep him just above starvation but must ensure for him not only his subsistence and

that of his family but also preserve his efficiency as a workman.

Fixation Or Revision Of Minimum Rates Of Wages: Minimum rate of the wages fixed or

revised consists of the following:

(i) A basic rate of wages and a special allowance viz. cost of living allowance;

(ii) A basic rate of wages with or without cost of living allowance and cash value of

concession for supplies of essential commodities;

(iii) An all-inclusive rate, i.e., basic rate, cost of living allowance and cash value of

concessions.

Wages Must Be Paid In Cash Or Kind:

Wages shall be paid in cash, however, if there is a custom to pay a part or the whole of wages

in kind, the Government may authorise payment either wholly or partly in kind on being

satisfied that the supply of essential commodities is being done to the worker as per the real

object of the Act.

Manner And Procedure Of Fixing And Revising Minimum Rates Of Wages:

For the fixation of minimum wages, the employment must have been in schedule originally

01 added to the schedule by a notification under Section 27 of the Act. The Govt. may fix or

revise the minimum wages either by committee procedure or by notification procedure.

Fixing Hours of Work Sec. 13

The no. of hours which shall constitute to normal working day in case of an adult, nine hours

including lunch break of one hour and 48 hours in a week. The employer shall allow a day of

rest after six days of work with wages to the employees every week. If the employer extract


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work for more than four hours and less than eight hours the employer has to pay full day

wages.

Overtime wages Sec. 14

Any employee on any day having worked excess of no. of hours prescribed (i.e. 9 hours in a

day or 48 hours in a week), is entitled to over time at double the wage except in agriculture

wherein it is 1 times of the wage.

If any employer -

a. pays to any employee less than the minimum rates of wages

fixed for that employees' class of work; or

b. contravenes any rule or order made by the appropriate

Government under Section 13 regarding hours of work;

He would be punished with imprisonment up to five years or with fine up to Rs.10000.00 or

with both. The offences under Section 22 of this Act shall be cognizable and non-bailable.

APPLICATION OF THE PAYMENT OF WAGES ACT,

1936 IN W.B.S.E.T.C.L

It applies in the first instance to the payment of wages to persons employed in any factory, to

persons employed (otherwise than in a factory) upon any railway by a railway administration

or, either directly or through a subcontractor, by a person fulfilling a contract with a railway

administration, and to persons employed in an industrial or other establishment specified.

Responsibility For Payment Of Wages

Every employer shall be responsible for the payment to persons employed by him of all

wages required to be paid under this Act: Provided that, in the case of persons employed

(otherwise than by a contractor)- (d) in factories, if a person has been named as the manager

of the factory (b) in industrial or other establishments, if there is a person responsible to the

employer for the supervision and control of the industrial or other establishments (c) upon

railways (otherwise than in factories), if the employer is the railway administration and the

railway administration has nominated a person in this behalf for the local area concerned. The


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person so named, the person. so, responsible to the employer, or the person so nominated, as

the case may be; [shall also be responsible] for such payment.

Fixation Of Wage-Periods. (1) Every person responsible for the payment of wages under

section 3 shall fix periods in respect of which such wages shall be payable. (2) No wage

period shall exceed one month.

Time Of Payment Of Wages (1) The wages of every person employed upon or in- (a) any

railway, factory or industrial or other establishment] upon or in which less than one thousand

persons are employed, shall be paid before the expiry of the seventh day, (b) any other

railway, factory or industrial or other establishment, shall be paid before the expiry of the

tenth day, after the last day of the wage period in respect of which the wages are payable: (c)

in the case of persons employed on a dock, wharf or jetty or in a mine, the balance of wages

found due on completion of the final tonnage account of the ship or wagons loaded or

unloaded, as the case may be, shall be paid before the expiry of the seventh day from the day

of such completion.

Where the employment of any person is terminated by or on behalf of the employer, the

wages earned by him shall be paid before the expiry of the second working day from the day

on which his employment is terminated (3) Where the employment of any person in anestablishment is terminated due to the closure of the establishment for any reason other than a

weekly or other recognized holiday, the wages earned by him shall be paid before the expiry

of the second day from the day on which his employment is so terminated. (4) All payments

of wages shall be made on a working day.

All wages shall be paid in current coin or currency notes or in both: Provided that the

employer may, after obtaining the written authorization of the employed person, pay him the

wages either by cheque or by crediting the wages in his bank account.

Maintenance of Registers And Records. (1) Every employer shall maintain such registers and

records giving such particulars of persons employed. by him, the work performed by them,

the wages paid to them, the deductions made from their wages, the receipts given by them

and such other particulars and in such form as may be prescribed. (2) Every register and

record required to be maintained under this section shall, for the purposes of this Act, be

preserved for a period of three years after the date of the last entry made therein.


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THE CONTRACT LABOUR ACT

The Contract Labour (Regulation and Abolition) Act, 1970 is an impor tant piece of social

legislation as it is for the welfare of labourers whose conditions of services are generally not

at all satisfactory.

It is meant to regulate the employment of contract labour and where necessary to abolish the

same. It protects the contract labour from various abuses.

Important Provisions of this Act

1. Constitution of Advisory Boards:

To advise the Central Government on matters relating to this Act, a Central Advisory Board

is constituted. Similarly State Advisory Boards are also constituted.

The Central Advisory Boards and the State Advisory Boards have the powers to constitute

committees for this purpose.

2. Registration of Establishments Employing Contract Labour:

Every principal employer of an establishment to which this Act applies is required to apply

for registration of the establishment with the registering officer as notified by the

Government.

If he fails to do so within the pre scribed time fixed for this purpose, he cannot employ

contract labour in the establishment, under the provisions of this Act.

3. Prohibition of Employment of Contract Labour:

The appropriate Government may, after consultation with the Central Board or a State Board,

prohibit employment of contract labour in any process, operation or other work of any

establishment, as per the provisions of this Act.

4. Licensing of Contractors:

According to this Act, no contractor to whom this Act applies, shall undertake or execute any

work through contract labour except and in accord ance with a licence issued by the licencing

officer.


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5. Welfare and Health of Contract Labour

(a) Canteens:

The Act also contains provisions for making rules that every establishment to which this Act

applies, wherein contract labour is of 100 workmen or more, shall provide and maintain one

or more canteens for the benefit of contract labour.

These rules may also provide for the date, number of canteens, standards in respect of

construction, accommodation, furniture and other equipment and the foodstuffs as well as the

charges.

(b) Rest-rooms:

There is a provision for providing rest-rooms, or alternative accommodation by the contractor

to the contract labour in estab lishments to which this Act applies and in which workers

(contract labour) is required to halt at night in connection with the work.

(c) Other facilities:

The Act also provides for other facilities such as :

(i) A sufficient supply of wholesome drinking water for the contract labour at convenient

places;

(ii) A sufficient number of latrines and urinals of the prescribed types so situated as to be

convenient and within reach to the contract labour in the establishment; and

(iii) Washing facilities.

(d) First-aid facilities:

The contractor is also required to provide and maintain first-aid facilities. These should be

readily accessible during all working hours.

(e) Liability of principal employer:

In case a contractor does not provide any amenity for the benefit of contract labour, such

amenity shall be provided by the principal employer (one who has given contract to the

contractor).


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The expenses on this account can be recovered by the principal employer, as per provisions

of this Act.

(f) Responsibility for payment of wages:

The Act provides that a contractor shall be responsible for payment of wages to each worker

employed by him as contract labour and such wages shall be paid before the expiry, of

prescribed period.

If the contractor fails to make payment of wages within the prescribed time or makes short

payment, then the principal employer shall be liable to make payment to the contract labour

employed by the contractor and recover such amount from the contractor.

6. Penalties and Procedure:

A penalty of imprisonment for a period up to three months or fine up to five hundred rupees

or both can be imposed on the person who obstructs an inspector in the discharge of his

duties under this Act.

For contravention of provisions regarding employment of contract labour, imprisonment for

term up to three months or a fine up to one thousand rupees or both can be imposed.


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GENDER SECURITY AND WBSETCL- PROTECTION OF WOMENEMPLOYEES AGAINST SEXUAL HARRASMENT ATWORKPLACEIt is noticeable that the number of sexual harassment cases taking place is increasing rapidly,

which gives a clear idea of the existence of many reasons, one of which is how people in

authority are not taking this huge problem into account and are not trying to prevent it. Such

actions have serious consequences and, which results in that the world should make fast

mo

Working of WBSETCL

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