Back
IN THE HIGH COURT OF JHARKHAND AT RANCHI
SUJIT NARAYAN PRASAD, J.
M/s Mahal Industries – Petitioner
Versus
Jharkhand State Electricity Board – Respondent
W.P. (C) No. 7571 of 2013
Decided On : 15-12-2022
Electricity Connection - Recovery of Dues - Supply Code of 2005, Section 13(2) and Section 14 of SARFAESI Act, 2002 - The court quashed the letters demanding payment for electricity dues from the petitioner, a subsequent occupant, and directed the refund of the amount deposited. The court relied on the Supply Code of 2005 and the provisions of the SARFAESI Act, 2002 to establish that the petitioner was not liable for the dues of the erstwhile occupier and was entitled to a refund.
Fact of the Case:
The petitioner purchased a property at an auction and applied for a fresh electricity connection. The electricity department demanded payment for dues from the previous occupier, which the petitioner deposited under protest. The petitioner filed a writ petition to quash the demand and seek a refund.
Finding of the Court:
The court found that the demand for payment from the petitioner, as a subsequent occupant, was contrary to the Supply Code of 2005 and the provisions of the SARFAESI Act, 2002. The court quashed the demand letters and directed the refund of the deposited amount.
Issues: The main issue was whether the petitioner, as a subsequent occupant, was liable for the electricity dues of the previous occupier and entitled to a refund.
Ratio Decidendi: The court relied on the Supply Code of 2005 and the provisions of the SARFAESI Act, 2002 to establish that the petitioner was not liable for the dues of the erstwhile occupier and was entitled to a refund.
Final Decision: The court quashed the demand letters and directed the respondents to refund the deposited amount to the petitioner, while granting liberty to the respondents to initiate a proceeding to recover the amount from the erstwhile occupier.
JUDGMENT :
SUJIT NARAYAN PRASAD, J.
1. The instant writ petition has been filed under Article 226 of the Constitution of India for quashing of the Letter No. 76 dated 12.09.2013 and Letter No. 452 dated 19.09.2013 by which a demand of Rs. 37,752/- has been raised against the petitioner which was to be paid by the erstwhile occupier of the premises, namely, Shri Arvind Kumar Singh in relation to Khata No. 44, Plot No. 1245 situated at Mouza-Mahilong, Thana No. 176, P.S. Tatisilwai, District-Ranchi.
2. The brief facts of the case as per the pleading made in the writ petition which requires to be enumerated, reads as under:
The petitioner, after making the said application for getting electricity connection, has received a letter under the signature of the Junior Electrical Engineer, Electric Supply Sub-Division, Tatisilwai dated 12.09.2013 communicating the petitioner that the land in question where the electricity line was provided is having dues of Rs. 37,752/- and due to default in making payment of the aforesaid amount, the electricity connection lying in the premises in the name of erstwhile occupier was disconnected.
Subsequent thereto, one communication was issued by the seal and signature of the Assistant Electrical Engineer, Electric Supply Sub-Division, Tatisilwai, Ranchi requesting the petitioner to deposit an amount to the tune of Rs. 37,752/- so that further action be taken for providing electricity connection, failing which the application for getting fresh connection will be rejected.
It is the case of the petitioner that although the aforesaid communication has been protested on the basis of the settled position of law as has been held by the Hon'ble Apex Court in Southern Power Distribution Company of Telengana Ltd. through its CMD and Others vs. Gopal Agarwal and Others, (2018) 12 SCC 644 followed by the Supply Code of the year 2005 wherein there is no stipulation for making recovery of the amount which is lying due against the erstwhile occupier of the premises in question. But, the petitioner since was in the need of the aforesaid connection for the purpose of starting his manufacturing unit has written a letter on 04.10.2013 appended as Annexure-8 to the writ petition referring therein for deposit of the aforesaid amount but under protest in view of Clause 5.5 of the Electric Supply Code Regulations, 2005 making therein request to grant electric connection forthwith and the aforesaid deposit is absolutely without prejudice to rights and contentions of the petitioner.
The amount has been deposited. The due receipt has been issued being Receipt No. 565622 appended as Annexure-9 to the writ petition. The petitioner, thereafter, has filed this writ petition challenging the letter no. 76 dated 12.09.2013 and letter no. 452 dated 19.09.2013 on the ground that communicating such letters by way of direction to deposit the amount which was to be deposited by the erstwhile occupier is contrary to the law, as such, prayer has been made for a direction to refund the aforesaid amount.
3. The respondents have appeared and filed counter affidavit and has disputed the fact about the deposit of the amount of Rs. 37,752/- by the petitioner by making statement to that effect at paragraph-7 wherein the stand inter alia has been taken that the aforesaid amount was deposited by Shri Arvind Kumar Singh on 26.10.2013 vide receipt no. 565622 thereafter outstanding dues of energy against the department was nill.
4. Mr. Mrinal Kanti Roy, learned counsel for the respondents has subm
The main legal point established in the judgment is that a subsequent occupant is not liable for the electricity dues of the previous occupier and is entitled to a refund, as per the Supply Code of 2....
Legal occupancy must be established to obtain an electricity connection; mere occupancy is insufficient, especially amidst a title dispute.
Regulation mandating deposit of previous consumer's electricity dues for new connections is lawful, ensuring protection of distribution licensee's interests.
The main legal point established in the judgment is that the electricity board cannot claim outstanding dues from the auction purchaser if no charge was created on the property, and electricity dues ....
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
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
