Regulation mandating deposit of previous consumer's electricity dues for new connections is lawful, ensuring protection of distribution licensee's interests.

JUDGMENT :

MOHAMMED NIAS C.P., J.

The petitioner in this writ petition is a private limited company engaged in the manufacture of Ayurvedic medicines, having its factory in Sheds No. B1, B2, B3 and B4 at the Industrial Estate, Ettumanoor, Kottayam, maintained and managed by the 6^th respondent, Kerala Small Industries Development Corporation Limited. In connection with its expansion and requirement of additional space within the industrial estate, the Managing Partner of Vazhakala Rubber Industries transferred 38 cents of land and executed Exts.P1 and P2 consent letters. Thereafter, Ext. P3 order dated 28.03.2012 was issued by the 6^th respondent, followed by the execution of Ext.P4 agreement dated 23.04.2012 between the petitioner and the 6^th respondent.

2. Pursuant thereto, the petitioner commenced utilisation of the electric connection available in the shed situated in the said property, bearing Consumer No.5525 under the 1^st respondent Board. Subsequently, Ext.P5 communication dated 07.07.2016 was issued to M/s Vazhakala Rubber Industries stating that, in compliance with the judgment dated 01.10.2013 in W.P.(C) No. 23997/2013, a revised bill for Rs.5,04,362/- had been issued on 04.12.2015 and that the service connection would be dismantled if the amount was not remitted within 15 days. On receipt of the said communication, the petitioner informed the 4^th respondent that the property had already been transferred in its favour and sought 30 days to address the issue with the erstwhile owner. The request was declined, and the service connection was disconnected and dismantled by the 1^st respondent.

3. Thereafter, the petitioner continued its operations using another connection with a connected load of 70,000 Watts, with the consent of respondents 1 to 5. In connection with further expansion of its manufacturing activities, the petitioner submitted Ext.P8 application dated 20.03.2025, before the 1^st respondent, seeking additional power allocation, remitted the prescribed fee, and received Ext.P10 acknowledgment dated 26.03.2025 from the 5^th respondent.

4. On enquiry regarding the status of the application, the petitioner was informed that a new connection would be granted only upon remittance of the arrears referred to in Ext. P5, which are stated to be dues of M/s Vazhakala Rubber Industries. The petitioner contends that, under the Electricity Supply Code, 2014, arrears are recoverable only from the previous consumer and not from a subsequent purchaser or occupier. The petitioner also asserts the absence of privity of contract with the Board in respect of the earlier connection and contends that no liability can be fastened upon it in relation to dues of the erstwhile consumer.

5. It is further contended that under Section 43 of the Electricity Act, 2003 , the distribution licensee is statutorily bound to supply electricity to an owner or occupier within one month of receipt of a valid application. Sub-section (3) to provides for the imposition of a penalty for failure to do so within the stipulated period. According to the petitioner, the 1^st respondent is under a statutory obligation to provide electric supply within the prescribed time and may insist only upon compliance with the deposit requirement under the Code; however, in the present case, such insistence is unjustified, particularly in view of the lapse of nine years from the date of disconnection.

6. Further, the petitioner filed I.A. No. 1/2025 stating that when the writ petition came up for admission