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2023 Supreme(Cal) 212

IN THE HIGH COURT AT CALCUTTA
SABYASACHI BHATTACHARYYA, J.
Centom Industries Limited & Another - Appellant
Versus
West Bengal Electricity Regulatory Commission & Others - Respondent
W.P.A. No. 4854 of 2023
Decided On : 17-03-2023

Advocates appeared:
For the Petitioners:Surajit N. Mitra, Tanoy Chakraborty, Shayak Mitra, Abhijit Sarkar, Abhik Chitta Kundu, Abhipiya Sarkar, Advocates.
For the Respondents:Abhratosh Majumder, Deepak Agarwal, Prasun Mukherjee, Advocates.

The DVC is not entitled to claim arrears for the tariff control periods 2017-2018 and 2018-2020, as per the orders passed by the APTEL and the Supreme Court, which granted a stay of arrears charged on the basis of the impugned tariff orders, subject to the consumers going on paying current electricity charges.

Headnote:

ELECTRICITY ACT - DISCONNECTION NOTICE - ARREARS - CONTROL PERIODS 2017-18 AND 2018-2020 - DVC NOT CLAIMING ARREARS - NET PAYABLE AMOUNT EXCLUDING ARREARS - NO IRREGULARITY OR ILLEGALITY IN DISCONNECTION NOTICE - WRIT PETITION DISMISSED.

Fact of the Case:

Petitioners, consumers of electricity under the Damodar Valley Corporation (DVC), challenged a disconnection notice issued by the DVC for non-payment of electricity charges, claiming that the DVC was precluded from claiming any arrears for the tariff control periods 2017-2018 and 2018-2020 due to successive orders passed by the Appellate Tribunal for Electricity (APTEL).

Finding of the Court:

The court found that the DVC, in the impugned disconnection notice, did not claim the arrear amounts for the control periods 2017-18 and 2018-20 from the petitioners at all. Upon excluding such amount, the net payable amount came to Rs.7,04,52,384/-, out of which the petitioners had made payment of Rs.3,66,62,622/-. Hence, the DVC only claimed the balance amount of Rs.3,37,89,762/- which remained unpaid as on February 18, 2023 for the consumption month of January, 2023.

Issues: 1. Whether the DVC was entitled to claim arrears for the tariff control periods 2017-2018 and 2018-2020. 2. Whether the disconnection notice issued by the DVC was justified.

Ratio Decidendi: 1. The court held that the DVC was not entitled to claim arrears for the control periods 2017-18 and 2018-2020, as per the orders passed by the APTEL and the Supreme Court, which granted a stay of arrears charged on the basis of the impugned tariff orders, subject to the consumers going on paying current electricity charges. 2. The court further held that the disconnection notice issued by the DVC was justified, as it was issued for non-payment of current electricity charges, excluding the arrear amounts for the control periods 2017-18 and 2018-20.

Final Decision: The court dismissed the writ petition filed by the petitioners, holding that there was no irregularity or illegality in the disconnection notice issued by the DVC.

JUDGMENT

1. The petitioners are consumers of electricity under the Damodar Valley Corporation (DVC) and are members of the Damodar Valley Power Consumers’ Association. The present writ petition has been preferred challenging a disconnection notice dated February 20, 2023 issued by the DVC to the petitioners.

2. Learned senior counsel appearing for the petitioners argues that in view of the successive orders passed by the Appellate Tribunal for Electricity (APTEL), at present, the DVC is precluded from claiming any arrears for the tariff control periods 2017-2018 and 2018-2020.

3. It is contended that the basis of the disconnection notice impugned herein, however, was non-payment of such arrears.

4. Learned senior counsel for the DVC controverts such submissions and argues that in the impugned disconnection notice, it was specifically mentioned that the arrear amount for the control periods 2017-2018 and 2018-2020 were excluded. Hence, the said ground of challenge is not tenable in the eye of law.

5. It is further argued that previously the petitioners had left huge amounts of dues as electricity charges, which are being paid by the petitioners in agreed instalments. Although the present claim has no nexus with the said instalments, it is contended that the petitioners are habitual defaulters.

6. It is further argued that the petitioners have resorted to forum shopping inasmuch as different sets of consumers of the DVC have approached different forums, including the APTEL and this Court, by preferring appeals and applications under Article 226 of the Constitution respectively. Hence, it is argued that the writ petition ought to be dismissed.

7. Certain orders passed by the APTEL acquire relevance in the context. In a challenge preferred by one Inox Air Products Private Limited, the APTEL, vide order dated June 6, 2022 had passed an interim order staying the payments of arrears by the appellant therein subject to the condition that the appellant pays full tariff at the rate as determined by the impugned tariff order (for the control period 2017-2018) dated May 5, 2022 for the period commencing with the date of the impugned order and continues to do so month by month against the periodic bills raised under the contract between the parties.

8. The same tariff order was challenged by the Damodar Valley Power Consumers’ Association, of which the petitioners are members. Vide order dated June 21, 2022, on an appeal preferred by the Association, the APTEL adopted the interim dispensation granted in the Inox matter. The present petitioners, in view of such interim order dated June 21, 2022 in favour of their Association, is, undoubtedly, entitled to protection under the same. By a subsequent order dated July 1, 2022, on another appeal preferred by a different consumer of the DVC, preferred against the same tariff order dated May 5, 2022 for the control period 2017-18, the APTEL adopted the same interim order in respect of all affected parties.

9. As a result, on and from July 1, 2022, all the consumers affected by the impugned tariff order for the control period 2017-18 were entitled to be protected from arrear charges levied on the basis of the said tariff order.

10. Again, vide order dated October 7, 2022, in another appeal filed by the Damodar Valley Power Consumers’ Association against the tariff order dated May 5, 2022 (in respect of control period 2017-18) and the tariff order dated June 17, 2022 (for control period 2018-20), the APTEL granted a blanket order of stay of the said two impugned tariff orders.

11. The DVC moved Civil Appeal Nos.8091-8098 of 2022 against the said bunch of orders dated October 7, 2022 passed by the APTEL. The Supreme Court, vide order dated November 23, 2022 clarified the order, thereby restoring the initial order dated June 6, 2022 of the APTEL, by maintaining the stay of arrears charged on the basis of the impugned tariff orders, subject to the consumers going on paying current electricity charges raised on the

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