The main legal point established in the judgment is that even after the Electricity Act, 2003 came into force, the Electricity Board is not duty-bound to provide electric connection to premises with previous dues unless the arrears are cleared, and the principle laid down by the Full Bench in Suraj's case would continue to apply.

RADHAKRISHNAN, Actg. C. J. :- Question that is posed for consideration in this case is whether the Electricity Board can demand arrears of electricity dues including penalty incurred by a previous consumer from a new owner/occupier/allottee of the same premises as a pre-condition for electricity connection under Regulation 15(e) of the Conditions of Supply of Electricity Energy after coming into force of the Electricity Act, 2003.

2. Learned single Judge following a Full Bench decision of this Court in Suraj v. KSEB, ILR 2005 (3) Kerala 618 : (AIR 2006 Ker 194) dismissed the writ petition holding that no direction can be given to the Electricity Board to give electricity supply to the petitioner unless the arrears are cleared. Counsel appearing for the appellant submitted that after coming into force of the Electricity Act, 2003, the Supply Code 2005 and the KSEB Terms and Conditions of Supply 2005, Regulation 15(e) of the Conditions of Supply of Electrical Energy and the Full Bench decision of this Court in Suraj's case are not applicable. Learned counsel appearing for the Board submitted that Regulation 15(e) of the Conditions of Supply of Electrical Energy is being followed even after coming into force of the Electricity Act, 2003 and hence the principle laid down by the Full Bench in Suraj's case would apply even after coming into force of the Electricity Act, 2003.

3. Counsel appearing for the petitioner referred to Regulation 7 of the Kerala State Electricity Board Terms and Conditions of Supply, 2005 and submitted that the said provision only enables the Board to recover the arrears from the previous consumer/owner/occupier of the premises and not from the person who purchases the premises. Reference was also made to Regulation 12 of the Kerala State Electricity Supply Code 2005 and submitted that arrears can be realised only from the previous consumer.

4. We are of the view that the arguments raised by the petitioner cannot be sustained not only on the basis of the principle laid down by the Full Bench in Suraj's case (AIR 2006 Ker 194) and also due to the fact that Regulation 12 of the Kerala State Electricity Supply 2005 has already stayed by the Kerala State Electricity Regulatory Commission vide its proceedings dated 27th February 2006. Order reads as follows :

"The Kerala State Electricity Board vide letter under reference has informed that clause 12 of the Kerala Electricity Supply Code, 2005 i.e. "Dues of previous consumer - If a purchaser of a premise requires to have a new connection as the earlier connection has already been dismantled after disconnection, the arrear if any shall be realized from the previous owner/occupier of the premises and not from the purchaser" provides sufficient opportunity for defaulting consumers to avoid remitting previous arrears and hence requested to modify the clause to protect the interest of the licensee as given below.

"However the purchaser (new consumer) shall deposit an amount equivalent to the previous arrears to the licensee, which will be reimbursed if realized from the previous owner/occupier by revenue recovery action".

The Commission in the meeting held on 27-2-2006 discussed the issue. After detailed deliberation it is decided to stay the above clause pending finalization of the proposal submitted by the KSEB vide letter under reference cited above."

Following the above decision of the Kerala State Electricity Regulatory Commission, Kerala State Electricity Board issued circular dated 16-3-2006 which reads as follows:

CIRCULAR

Sub : Clause 12 of the Kerala Electricity

Supply Code-stay-reg.

Ref : Letter No. KSERC/TandC of Supply amendment/2006/183 dated 27-2-2006.

In response to the Board's request for suitably amending clause 12 of the Supply Code, the Kerala State Electricity Regulatory Commission has informed that in view of the fact that certain consumers are misusing Clause 12 (via - Du