SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

1979 Supreme(AP) 59

Andhra Pradesh High Court
Judges : A.SAMBASIVA RAO, P.RAMACHANDRA RAJU
Yenduri Chenchaiah (died), Managing Partner, Balarama Krishna Rice Mill, Malleswaram, Bandar Taluk, Krishna Dist - Appellant
Versus
Secretary, A.P.Electricity Board, Vidyut Soudha, hyderabad - Respondent
Decided On : 02-16-79

Condition 6.14 of the terms and conditions for supply of electricity only applies to consumers who have more than one service.

Headnote:

ELECTRICITY SUPPLY ACT, 1948 - SECTION 49 - CONDITION 6.14 - DISCONNECTION OF SERVICE - INTERPRETATION - CONSUMER WITH MULTIPLE SERVICES - LIABILITY OF PARTNER FOR FIRM'S DEBTS - APPLICABILITY OF CONDITION.

Fact of the Case:

The petitioner, a partner in a firm, Balaramakrishna Rice Mill, defaulted on payment of unconnected minimum charges for electricity supplied to the mill. The Andhra Pradesh State Electricity Board (Board) filed a suit against the firm and its partners, including the petitioner, to recover the arrears. The Board also proposed to disconnect the petitioner's personal electrical supply service under Condition 6.14 of the terms and conditions for supply of electricity, which allows the Board to disconnect other services of a consumer who defaults on payment of dues relating to one service.

Finding of the Court:

The court held that the Board could not disconnect the petitioner's personal electrical supply service to recover the arrears due from the firm. The court found that the petitioner was not the consumer in respect of the service standing in the name of the firm, and that Condition 6.14 only applied to consumers who had more than one service.

Issues: Whether the Board could disconnect the petitioner's personal electrical supply service to recover the arrears due from the firm.

Ratio Decidendi: The court interpreted Condition 6.14 of the terms and conditions for supply of electricity to mean that the Board could only disconnect other services of a consumer who had more than one service. The court found that the petitioner did not have more than one service, as he was not the consumer in respect of the service standing in the name of the firm.

Final Decision: The court allowed the writ appeal and the writ petition, and set aside the order of the lower court which had upheld the Board's proposed action to disconnect the petitioner's personal electrical supply service.

( 1 ) CONDITION No. 6. 14 of the terms and conditions for supply of electricity made by the Andhra Pradesh State Electricity Board under section 49 of the Electricity Supply Act of 1948 reads thus: "where any consumer, having more than one service defaults in payment of dues relating to one of the services and UCM. charges due in respect of any new connection, the Board may cause the other services also to be disconnected till all the arrears due on all services and arrears of UCM. charges in respect of the new connection are paid notwithstanding the fact that the services are separate and are covered by separate agreements and notwithstanding that one or other of the services is under disconnection for non-payment of charges or other reason. The point now is as to what the true meaning and application of this condition is.

( 2 ) THE petitioner was the managing partner of a firm Balarama krishna Rice Mill. On behalf of the firm, he entered into an agreement with the State Electricity Board for supply of energy to the Rice Mill because of certain legal troubles, the Rice Mill could not function and consequently, the firm fell into arrears to pay the unconnected minimum charges as per the terms of the agreement in a sum of Rs. 23,310/ -. The board instituted a suit for the recovery of the unconnected minimum charges against the firm and its partners. In addition to the filing of the suit, the Board took resort to the power which it thought it had under the above condition No. 6. 14 to disconnect the personal electrical supply service, standing in the name of the petitioner. This proposed disconnection of his personal electrical power supply service in the process of recovering the dues payable by Messrs. Balaramakrishna Rice Mill was challenged in the Writ Petition.

( 3 ) OUR learned brother Jeevan Reddy, J. upheld the proposed action of the Electricity Board. In the reasoning of the learned Judge, the petitioner was a partner and he was liable for the debts of the partnership firm Balaramakrishna Rice Mill. The arrears due by the firm constituted debt and the petitioner as a partner was liable for the debts incurred by the partnership. In this connection, he also referred to the circumstance that the Board had filed a suit against the firm and the partners including the petitioner, to recover the amount of arrears. The learned Judge pointed out that if the suit is decreed, the Board can proceed against the petitioner personally for realising the debt. On the basis of this reasoning, the learned Judge upheld the action of the Electricity Board to disconnect the personal electrical supply service to the petitioner.

( 4 ) THIS decision of our learned brother is challenged in this Writ appeal.

( 5 ) TO complete the narration of facts, it is to be noted that the suit filed by the Board against the firm and its partners, including the Writ petitioner, was dismissed by the Trial Court and an appeal is now pending before this Court.

( 6 ) NOW, the question is whether the Board can disconnect the other service of the petitioner as a measure to collect the arrears due by Messrs. Balaramakrishna Rice Mill of which he was a partner. There is no doubt that the firm owed some money towards the unconnected minimum charges. There is also no denial of the fact that as a partner of the firm, the petitioner would be liable to pay the amount of arrears if it is decreed. There is also a default in payment of the dues by the firm. But the crucial factor which would enable the Board to take recourse to the action permitted under Condition No. 6. 14 is that the consumer who has defaulted in payment of dues should have more than one service. If he has more than one service, the other service may be disconnected till all the arrears due on all services and arrears of unconnected minimum charges are paid. If the same consumer has more than one service, it does not matter that services are separate and are covered by separate agreements. But the same cons



Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top