IN THE HIGH COURT AT CALCUTTA
Sabyasachi Bhattacharyya, J.
Cesc Limited - Appellant
Versus
Ombudsman & Anr. - Respondents
W.P.A. No. 24719 of 2022
Decided On : 06-12-2022
Electricity Act - Recovery of Outstanding Dues - Section 56(2) - The court discussed the applicability of Section 56(2) of the Electricity Act, 2003 and the relevant regulations in a case involving recovery of outstanding dues and disconnection of electricity supply. The court held that the claim for outstanding amounts with regard to the previous premises was time-barred and set aside the consequential threat of disconnection. The Ombudsman's decision to reverse the order of the Grievance Redressal Officer was upheld.
Fact of the Case:
The CESC Limited disconnected the electricity supply at premises no. 27A, Hossain Shah Road, Kolkata due to outstanding dues. The respondent no.2 applied for a new electricity connection at a different premises and was given the connection. The CESC Limited later demanded payment for the outstanding dues of the previous disconnected supply, leading to a dispute and subsequent legal proceedings.
Finding of the Court:
The court found that the claim for outstanding amounts with regard to the previous premises was time-barred and set aside the consequential threat of disconnection. The Ombudsman's decision to reverse the order of the Grievance Redressal Officer was upheld.
Issues: The main issue was the applicability of Section 56(2) of the Electricity Act, 2003 and the relevant regulations in the recovery of outstanding dues and disconnection of electricity supply.
Ratio Decidendi: The court held that the claim for outstanding amounts with regard to the previous premises was time-barred and set aside the consequential threat of disconnection. The court also upheld the Ombudsman's decision to reverse the order of the Grievance Redressal Officer.
Final Decision: The court dismissed the writ petition, thereby upholding the Ombudsman's decision to set aside the claim of the CESC Limited as time-barred.
JUDGMENT
1. The Distribution Licensee (CESC Limited) has preferred the instant writ petition, challenging an order of the Ombudsman. The respondent no.2 had outstanding dues in respect of an electricity meter at premises no. 27A, Hossain Shah Road, Kolkata. As a result, the CESC Limited disconnected the said supply for non-payment of outstanding dues on February 6, 2018.
2. The respondent no.2, upon applying soon thereafter for a new electricity connection at a different premises in the area at 27A/H/2, Hossain Shah Road, was given a new electricity connection by the CESC Limited on March 19, 2018. The respondent no. 2 regularly cleared all electricity bills for such connection.
3. Subsequently, on March 2, 2021, the CESC Limited sent a letter to respondent no.2, asking the respondent no.2 to clear his pending dues in respect of the previous disconnected supply.
4. Upon the respondent no.2 not making such payment, the CESC Limited issued a notice of disconnection of the second connection, appended with the electricity bill for the month of April, 2021.
5. Respondent no.2 made a representation on May 3, 2021 against the said disconnection notice and bill before the concerned Grievance Redressal Officer (GRO), seeking rectification of the electricity bill.
6. Due to pendency of the matter before the GRO, the respondent no.2 filed a writ petition bearing W.P.A. No.11126 of 2021, seeking an order restraining the CESC Limited/petitioner from disconnecting the supply of electricity of the respondent no.2 at the new premises.
7. On July 20, 2021, the writ petition was disposed of with a direction on the GRO to dispose of the representation of respondent no.2 within a fortnight from the dated of receipt of a copy of the order.
8. The GRO, vide order dated August 16, 2021, directed the respondent no.2 to clear the outstanding dues of the petitioner/CESC Limited by six monthly instalments in order to continue with the existing supply, restraining the CESC Limited from disconnecting supply to the respondent no.2 in the meantime.
9. The respondent no.2 challenged the said order of the GRO by filing Representation No. C-47SB/2021 before the Ombudsman, West Bengal (respondent no.1) appointed under Section 42(6) of the Electricity Act, 2003 (for short, 'the 2003 Act').
10. The Ombudsman passed a Draft Settlement Order (DSO), upon hearing the parties, on June 9, 2022. The CESC Limited raised an objection to it by a written submission on July 12, 2022, seeking modification of the said DSO.
11. However, the Ombudsman passed final order on September 15, 2022, inter alia, observing that the CESC Limited was not entitled to raise the demand for arrears of its dues as the claim was barred by limitation under Section 56(2) of the 2003 Act.
12. Challenging the said order, the CESC Limited has preferred the instant writ petition.
13. Learned Counsel appearing for the CESC Limited argues that Section 56(1) of the 2003 Act envisages three modes of recovery of outstanding dues - a money suit for recovery of the amount, disconnection of the supply and discontinuance of the supply until the outstanding dues, with expenses incurred by the Licensee in cutting-off and reconnecting the supply, are paid.
14. It is argued that Section 56(2) of the 2003 Act is not applicable in the present case. It is submitted that the second mode contemplated in sub-section (2) of Section 56 was already resorted to on February 06, 2018, by disconnecting the previous supply.
15. However, in view of such disconnection, no further bills could be raised in respect thereof and there was no further scope of showing the outstanding sum continuously in the electricity bills for the said disconnected meter as recoverable as arrear of charges for electricity supplied.
16. Learned counsel for the petitioner/CESC Limited alleges that when the new connection was given at Premises No.27A/H/2 on March 19, 2018, the respondent no.2 suppressed about the previous outstanding dues standing in his name in respect
Central Airmen Selection Board and another Vs. Surender Kumar Das
M/s Phool Chand BajrangLal and another Vs. Income Tax Officer and another
Rashi Metals Pvt. Ltd. Vs. West Bengal State Electricity Board and others
Swedish Match AB and another Vs. Securities & Exchange Board of India and another
A distribution licensee cannot recover electricity dues from a new owner without establishing a nexus with the previous owner, and the requirement for a 'No Dues Certificate' is directory.
Supplementary bills can be raised for mistakes, but disconnection for non-payment after two years is prohibited under Section 56(2) of the Electricity Act, 2003.
Electricity Act mandates separate supply for lawful tenants without enforcing previous consumer's dues, as per modern statutory protections.
In the absence of any nexus between the new owner and the previous owner/occupant, the new owner is not liable for outstanding electricity dues left by the previous owner/occupant.
Regulation mandating deposit of previous consumer's electricity dues for new connections is lawful, ensuring protection of distribution licensee's interests.
A licensee cannot exercise the power of electricity disconnection for the recovery of arrears that are more than two years old, unless such sums were continuously shown as recoverable in previous bil....
The right to recover electricity dues through civil suits is not barred by the two-year limitation for disconnection proceedings under Section 56(2) of the Electricity Act.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.