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

2019 Supreme(Ker) 613

IN THE HIGH COURT OF KERALA AT ERNAKULAM
C.K.ABDUL REHIM, R.NARAYANA PISHARADI, JJ.
Rafeek. C.A. - Appellant
Versus
Kerala State Electricity Board Ltd. and Ors. – Respondents
WA.No.1635 of 2019
Decided On : 13-08-2019

Advocates Appeared:
For the Appellant : Sri. A.A. Ziyad Rahman, Sri. Lal K. Joseph, Sri. V.S. Shiraz Bava, Sri. M. Sasidharan
For the Respondent: Sri. Sudheesh Ganesh Kumar, SC

IMPORTANT POINTS
Section 43 of the Electricity Act, 2003 read with Regulation 40(3) of the Supply Code, 2014 the respondent Electricity Board is at an obligation to provide new electricity connection to the appellant, once the appellant complies with the requirement of deposit as envisaged under Regulation 40(3) of the Supply Code, 2014. In the case at hand, it is evident that, by virtue of an interim order passed by the learned Single Judge, the appellant had complied with the requirement of deposit of the amounts due, excluding the interest. Therefore the respondent Electricity Board is at an obligation to provide new electricity connection to the appellant, within the date stipulated under Section 43(1) of the Electricity Act, 2003.

Headnote:

Electricity Act, 2003 - Section 43 --Section 43 of read with Regulation 40(3) of the Supply Code, 2014 the respondent Electricity Board is at an obligation to provide new electricity connection to the appellant, once the appellant complies with the requirement of deposit as envisaged under Regulation 40(3) of the Supply Code, 2014.

Statement of facts:

The appellant is the auction purchaser of 70 cents of land situated in the 'Industrial Development Area' - The plot in question was originally allotted to a company named 'M/s. Usha Polymers Private Limited'- On default committed in repayment of the loans availed, KFC took over possession of the industrial unit by invoking Section 29 of the State Financial Corporation Act. The Industries Department permitted the KFC to conduct auction sale of the assets. The appellant herein bid in auction the said property- The appellant had entered into an agreement with the Industries Department to occupy the land based on a 'licence-cum-lease agreement' executed. For setting up a new industry in the premises, the appellant applied for a new electric connection-Arrears due to the tune of Rs.9,61,822/ -from M/s.Usha Polymers Private Limited-By virtue of the provisions contained in the Kerala Electricity Supply Code, 2014, the arrears have to be realised from previous owner and not from the subsequent purchaser-Writ petition was filed seeking direction for providing new electric connection to the appellant.

Finding of the court:

The respondents are directed to provide new electric connection to the appellant on the basis of the application submitted and on the basis of the deposit made by him under Regulation 43 of the Supply Code, 2014.

Result: Allowed

JUDGMENT :

C.K.ABDUL REHIM, J.

The petitioner in W.P.(C) No.13386 of 2019 is in appeal against judgment of the Single Judge, dated 14th June, 2019. The respondents herein are the respondents in the writ petition.

2. The appellant is the auction purchaser of 70 cents of land situated in the 'Industrial Development Area' maintained and managed by the Industries Department of the State Government, at Muttom village in Thodupuzha Taluk in Idukki District. The plot in question was originally allotted to a company named 'M/s. Usha Polymers Private Limited'. The industrial unit of the said company was established on availing financial assistance from 'M/s. Kerala State Industrial Development Corporation (KSIDC)' and 'M/s. Kerala Financial Corporation (KFC)'. On default committed in repayment of the loans availed, KFC took over possession of the industrial unit by invoking Section 29 of the State Financial Corporation Act. The Industries Department permitted the KFC to conduct auction sale of the assets. The appellant herein bid in auction the said property. The General Manager of the District Industries Centre had passed an order on 28.02.2019 handing over possession of the land in question to the appellant. Presumably, the proceeds of the auction sale was distributed among KSIDC and KFC on a pro-rata basis in accordance with the arrears due to each of them. The appellant had entered into an agreement with the Industries Department to occupy the land based on a 'licence-cum-lease agreement' executed. For setting up a new industry in the premises, the appellant applied for a new electric connection. The 4th respondent issued Ext.P3 letter to the appellant stating that there exists arrears due to the tune of Rs.9,61,822/ -from M/s.Usha Polymers Private Limited, as on 30.03.2019. It was informed that the appellant will be provided with a new connection only if the said arrears is cleared payment. In reply to Ext.P3, the appellant informed the 4th respondent that, by virtue of the provisions contained in the Kerala Electricity Supply Code, 2014, the arrears have to be realised from previous owner and not from the subsequent purchaser. Since the 4th respondent had not responded to the reply, the appellant approached the 3rd respondent, who in turn issued Ext.P5 letter. It was intimated that, KFC had informed the Electricity Board that the auction was conducted on the basis of an undertaking that the purchaser will remit the arrears of the previous owner, due to the KSEB. Therefore the appellant was intimated that the new connection can be provided only after remittance of the arrears. The appellant again submitted Ext.P6 reply to the 3rd respondent pointing out that, he has no liability to pay the arrears due from the previous owner. He further submitted Ext.P7 representation before the 2nd respondent. Since no favourable response was received, the writ petition was filed seeking direction for providing new electric connection to the appellant.

3. During pendency of the writ petition the Single Judge had passed an interim order on 14th May, 2019 as follows:-

“Having considered the submissions advanced and taking note of the relevant statutory provisions, particularly Regulation 40 of the Kerala Electricity Supply Code, 2014, there will be an interim order as prayed for, for a period of one month on condition that the petitioner deposits the arrears of electricity charges and other liabilities, excluding interest thereon, within a period of ten days from today.”

4. But it is submitted that, the respondents have not complied with the above direction, despite the appellant depositing the entire arrears, excluding the interest.

5. After passing of the above interim order, the writ petition itself was disposed of on 14th May, 2019 through the judgment impugned herein. The observation in the judgment is that, the appellant had conceded about the agreement executed with the KFC (mistakenly noted in the judgment as 'KSIDC') while allotment of the premis

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
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top