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9/9/2016

HARMONIOUSCONSTRUCTION:StateofU.P.v.RenusagarPowerCo(AIR1988SC1737.)|LAWMANTRA(ThinkBeyondOthers)

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HARMONIOUS CONSTRUCTION:State of U.P. v. Renusagar Power Co (AIR


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Theissueofharmoniousconstructionrevolvedmucharoundincaseofconflictbetweenageneralprovisionandaspecific

Defamationcasesshouldnotbeusedaspolitic

provision.Twosubclausesofthesameprovisionhadconflictingviewswhereinthecourtusedthedoctrineofharmonious

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Caseinbrief.

notbeusedaspoliticaltoolscinjaylalithas

Renusagarwasa100%subsidiarycompanyofHindalcowhichwasmainlyincorporatedforthesupplyofelectricitytothe

case/)August25,2016

holdingcompanywhichwasaaluminiummanufacturingcompany.Numerousamendmentsandnotificationswerepassed
from1950swhichchangedthestanceontheelectricitydutyontheselfgeneratedelectricity.From1952to1970noduty
waspayableifelectricitywasproducedbyownsource.From1970to1973dutyofonepaisaafter1973nodutywas
payable.SanctionfromgovernmentwasobtainedbyRenusagarspecificallyforthesupplyofelectricitytoHindalco

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company.Wherein,itshallsupplyelectricityonlytoHindalcoandRenusagarwastobetreatedascaptiveplant(own

Answersheetscanbedemandedbystudents

sourceofgeneration)bygovernment.ThecruxofthematteriswhetherproductionofelectricitybyRenusagarsolelyto

fromCBSEunderRTI:SC

Hindalcowouldconstituteasalebetweenthetwocompaniesorwouldamounttoownsourceofgeneration.

(http://lawmantra.co.in/answersheetscanbe

Theconflictingprovisionsinvolvedinthiscasewas

demandedbystudentsfromcbseunderrtisc/

Section3Levyofelectricityduty.(1)Subjecttotheprovisionshereinaftercontained,thereshallbeleviedforandpaidtothe

August23,2016

StateGovernmentontheenergy:

Dr. Adish C. Aggarwala


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(a)soldtoaconsumerbyalicensee,theBoard,theStateGovernmentortheCentralGovernmentor
(c)consumedbyanyotherpersonfromhisownsourceofgenerationaduty(hereinafterreferredtoaselectricityduty)
determinedatsuchrateorratesasmayfromtimetotimebefixedbytheStateGovernmentbynotificationintheGazette,
andsuchratemaybefixedeitherasaspecifiedpercentageoftheratechargedorasaspecifiedsumperunit.

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OftheUPelectricitydutyAct1952

Clearpolicyonnatureofoffencesmustbe

Section3(1)(c)givesgovernmentthediscretiontosettheelectricitydutyonownsourceofgenerationaccordingly,

devisedtodisqualifyacandidatefromgovtjob

Renusgarwillbeexemptedowingtoallthegovernmentnotifications.Readingitinthecontextof3(1)(a)itcanbeseenthe

DelhiHC(http://lawmantra.co.in/clearpolicyon

RenusagaractsasalicenseeandHindalcowouldbehaveasaconsumr.Thereby,adutycanbeleviedonHindalco.

natureofoffencesmustbedevisedto

Hencethetwoprovisionisindirectconflictwitheachotheronthepretextofdutybeinglevied.

disqualifyacandidatefromgovtjobsdelhihc

Bytheapplicationofdoctrineofharmoniousconstruction,itwasfoundthatthesubclausesofsection3(1)shouldberead

August22,2016

harmoniouslyandnotlierally.Provisionsshouldbeconstruedinawaythattheydontdefeattheotherprovisions.Itwas
alsoopinedthatincasesofgeneralandspecificprobvision,specificprovisionsshouldbeappliedinlightofharmonious
constructionoftheprovisions.Hencewasheldthatsection3(1)(c)isaspecialprovisionwhereitdoesnotdealwithnormal
circumstancesofsalebutwithfewexceptionalcircumstancesasownsource.itwasalsosaidthatsuchharmonious
constructionbetweenthegeneralandspecialprovisionswouldbeinconsonancewiththeobjectandpurposeoftheAct.

benefitsistobeavailedtosuchselfgenerationcompaniesinthepurviewofpublicinterest.

Remarksthiscaseisaclassicprecedence.overthemuchdebatedtopicinthelegalfield,i.e.,conflictofspecialand
generallaw,harmoniousconstructionoftheactsaguidinglight.Oneofthestrikinginterpretationinthiscaseisthat
conflictingclausesappearinthesamesectionandisresolvedharmoniouslybyupholdingtheobjectandpurposeoftheAct(UPelectricitydutyAct1952)Though
thiscasedealsonlywiththeharmoniousconstructionofconflictingprovisionsbetweenageneralandspecificprovisionsitmakeswaytoresolvebiggerconflicts.
Forexample,incasesofconflictinglegislationslikeCigarettesandOtherTobaccoProductsAct,2003(COTPA)andTobaccoBoardAct.1975.Wheretheformeristo

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regulatetheuseoftobaccoandthelatteristoencouragetobaccoindustry.
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