RAJASTHAN HIGH COURT: DISCOMS AS STATE BODIES DUTY BOUND TO PROTECT CONSUMERS' INTERESTS

The Rajasthan High Court in the case Bhansali Dyeing v. State of Rajasthan and Ors and connected matters observed and has held that Distribution Companies, DISCOMS as the bodies of the State government, have the duty to protect the interests of consumers.

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The bench headed by Justice Pushpendra Singh Bhati in the case observed and has held that the imposition of the Special Fuel Surcharge beyond the original principal amount is deemed unjustified in the eyes of the law.

The court in the case observed that the respondentDISCOMS are the bodies of the State Government and fall under the definition of 'State' as it is contained under Article 12 of the Constitution of India, and therefore, it being the duty of the State to protect the interests of the consumers; but despite the same, the respondents levied the additional cost in the name of Special Fuel Surcharge.

Therefore, the court stated that the Special Fuel Surcharge would have been justified had it been only on the aforementioned original principal amount i.e. Rs.3,048.63/- Crores, but the Special Fuel Surcharge as imposed herein is not justified in law.