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2002 Supreme(Del) 963

R.C.CHOPRA
INNDEV EGINIRS INDIA PRIVATE LIMITED – Appellant
Versus
DELHI VIDYUT BOARD – Respondent


Judgement Key Points

What is the legality of the Delhi Vidyut Board withdrawing or disconnecting supply of electricity due to non-clearance of arrears in respect of a different connection, place, or consumer? What are the rights and remedies of a consumer when arrears pertain to a previous consumer or different premises, under Section 24 of the Electricity Act, 1910? What is the proper approach when transferring arrears from one connection/premises to another and whether a separate legal entity can be held liable for dues of another entity?

Key Points: - The court held that DVB has no right to disconnect or withdraw supply to a consumer for non-clearance of arrears belonging to a different connection, premises, or consumer (!) . - Section 24 of the Electricity Act can be invoked only against the person to whom energy was supplied; liability cannot be transferred to a third party or subsequent purchaser as a condition for supply (!) (!) . - The liability to pay electricity dues rests with the actual consumer; new owners/purchasers cannot be compelled to clear past arrears as a condition for supply, though Board may pursue recovery from the original consumer via appropriate remedies (!) (!) . - The judgment affirms that a purchaser/new user cannot be held liable for arrears of the former occupant unless privity of contract exists; a third party cannot be forced to pay due to lack of contractual relation (!) (!) . - The court set aside the impugned orders transferring arrears and directed not to disconnect at B-6 based on arrears of B-87; emphasizes vigilant, but proper, recovery methods rather than cross-transfer of arrears (!) . - Isha Marbles and Waxpol decisions cited: liability lies with the consumer linked to the supply; commercial/public property cannot be wrongfully transferred to shield due payments (!) (!) .

What is the legality of the Delhi Vidyut Board withdrawing or disconnecting supply of electricity due to non-clearance of arrears in respect of a different connection, place, or consumer?

What are the rights and remedies of a consumer when arrears pertain to a previous consumer or different premises, under Section 24 of the Electricity Act, 1910?

What is the proper approach when transferring arrears from one connection/premises to another and whether a separate legal entity can be held liable for dues of another entity?


R. C. Chopra

( 1 ) THE short question raised in this writ petition is as to whether the respondent No. 1, Delhi Vidyut Board can withdraw the supply of electricity to a consumer on account of non-clearance of arrears in respect of a different connection, at a different premises and in the name of a different consumer.

( 2 ) THE facts relevant for disposal of this writ petition, briefly stated, are that the petitioner company incorporated in the year 1996 is having its factory at B-6, Mayapuri Industrial Area Phase I, New delhi. It gets its electricity supply from K. No. 014-5765296/1s/h0009 which is in the name of previous owner of property. The two Directors of the petitioner Company, namely Dutt Kumar and Sarla Kumar, are the Director of M/s. S. D. Technical Service private Limited also, which was having. its factory at b 87, Mayapuri Industrial Area Phase-I, New Delhi. The electricity supply to the said factory was from K. No. XI 1925. This K. number was in the name of M/s. Ram Prakash Kamal Kishore, the landlords of the premises no. B-87, Mayapuri Industrial Area Phasw I, New Delhi. On account of certain demands raised by Delhi Vidyut board and on account of some disputes betwee












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