Kerala State Electricity Board Ltd. & Anr. vs Rubfila International Limited & Ors.
Background
Rubfila International, an industrial unit that started commercial production in March 1995, was entitled to a 5-year exemption from enhanced power tariff under a 1992 Kerala Government Order, running from its date of commercial production. In a second round of litigation, Rubfila claimed parity with another unit, M/s Patspin India Ltd., which had been given the concession from its later "date of energisation" instead: a claim the High Court accepted, extending Rubfila's concession period. The Kerala State Electricity Board challenged this, pointing out that the benefit given to Patspin on that basis had itself since been withdrawn.
Decision Breakdown
The Supreme Court held that once the Board's 2001 order withdrawing the special concession to Patspin (reverting it to the date-of-commercial-production formula) went unchallenged, the entire foundation of Rubfila's parity claim collapsed. The Kerala High Court's finding that this withdrawal did not affect its earlier judgment was an error apparent on the record and could not stand. The Court also noted Rubfila had never actually been denied the basic 5-year exemption from its own date of commercial production, and no valid claim for "negative equality" under Article 14 survived once the comparator case was withdrawn. The appeals were allowed and the High Court's judgment and order were set aside.
Lesson Learnt
A claim to equal treatment (Article 14 "parity") with another party's benefit is only as strong as that comparator benefit itself. If the benefit relied upon for comparison is later withdrawn or found erroneous, the parity claim collapses with it.