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1977 Supreme(All) 66

Allahbad High Court
YASHODANANDAN,S.MALIK
State Electricity Board - Appellant
Versus
Prakash Talkies - Respondent
Decided On : 03/22/1977

Advocates:
A.K. Singh and H.P. Gupta, for Appellant; M.L. Jaiswal and Gyan Prakash for Respondent.

There is no duty cast on the licensee to refer a dispute covered by sub-cl. (3) of Cl. VI of the Schedule of the Electricity Supply Act, 1948, for determination to the Electrical Inspector. It is for the consumer to make a reference to the Electrical Inspector for determination of the dispute.

Headnote:

ELECTRICITY SUPPLY ACT, 1948 - S. 24 - DISCONTINUANCE OF SUPPLY TO CONSUMER NEGLECTING TO PAY CHARGE - INTERPRETATION - DUTY OF LICENSEE TO REFER DISPUTE TO ELECTRICAL INSPECTOR - NO SUCH DUTY - DISPUTE TO BE REFERRED BY CONSUMER - LICENSEE ENTITLED TO MAKE REQUEST FOR DEPOSIT WITH ELECTRICAL INSPECTOR - FAILURE OF CONSUMER TO COMPLY - BAR ON LICENSEE REMOVED.

Fact of the Case:

The appellant, State Electricity Board, Uttar Pradesh, sent a revised bill to the respondent, Prakash Talkies, for the difference in charges for electrical energy supplied for running fans, claiming that the respondent was using industrial power for this purpose. The respondent objected, claiming that it was using the industrial power for feeding a motor and dynamo to generate D.C. energy for fans, and that it was not using the A.C. current directly for running the fans. The appellant threatened to disconnect the electrical supply if the respondent did not pay the revised bill.

Finding of the Court:

The court held that there was no duty cast on the licensee to refer a dispute covered by sub-cl. (3) of Cl. VI of the Schedule of the Act for determination to the Electrical Inspector. It is for the consumer to make a reference to the Electrical Inspector for determination of the dispute. Section 24 (1) of the Act gives power to the licensee to disconnect the electric supply after giving one week's notice in writing to the consumer for payment of the amount due. Sub-sec. (2) of S. 24 of the Act applies only to those cases where a dispute has already been referred to the Electrical Inspector before the occasion arises for the issue of a notice under S. 24 (1) of the Act.

Issues: Whether the licensee is required to refer a dispute regarding improper use of energy to the Electrical Inspector before issuing a notice of disconnection of supply under S. 24 (1) of the Electricity Supply Act, 1948.

Ratio Decidendi: The court interpreted S. 24 of the Electricity Supply Act, 1948, and held that there is no duty cast on the licensee to refer a dispute covered by sub-cl. (3) of Cl. VI of the Schedule of the Act for determination to the Electrical Inspector. It is for the consumer to make a reference to the Electrical Inspector for determination of the dispute. Section 24 (1) of the Act gives power to the licensee to disconnect the electric supply after giving one week's notice in writing to the consumer for payment of the amount due. Sub-sec. (2) of S. 24 of the Act applies only to those cases where a dispute has already been referred to the Electrical Inspector before the occasion arises for the issue of a notice under S. 24 (1) of the Act.

Final Decision: The court allowed the appeal and set aside the order of the learned single Judge. The appellant-State Electricity Board, Uttar Pradesh shall be entitled to its costs from the respondent.

Judgement

YASHODA NANDAN, J. :- This appeal by the State Electricity Board, Uttar Pradesh, which is a licensee within the meaning of S. 26 of the Electricity Supply Act, 1948, is directed against the judgment of a learned single Judge in a writ petition filed by respondent, Prakash Talkies.

2. The respondent runs a cinema house styled as Prakash Talkies, Banda. It had obtained electric connections for light and fans as well as for industrial power. The industrial power connection had been obtained for running the motor for the projector and metal rectifier. Officials of the vigilance department of the appellant visited the respondents premises and discovered that electrical energy supplied for the industrial power connection was being utilised for feeding a dynamo and a motor which generated D. C. Energy which, in turn, was used for running D. C. fans in the respondents premises. The appellant Board took the view that since the respondent was using the energy supplied by it for running fans, it was liable to pay for the electricity consumed according to the rates applicable for supply of electrical energy for lights and fans. In the appellants view the respondent could not legitimately pay for the energy consumed for running the dynamo and motor for generating D. C. energy for use of fans at industrial current rates. The appellant consequently sent a revised bill for the difference for the past several years. The respondent objected and asked for a clarification as to why a supplementary demand had been made from it. The respondent claimed that nothing was in arrears against it and the demand was unjustified. It inquired the reasons for the increase in the rates. The appellant-Board replied that since the respondent was using the electrical energy supplied by it for running fans, it (the respondent) was liable to pay at the rates fixed for the supply of electrical energy for light and fans. In the various notices demanding payment the appellant threatened the respondent with disconnection of electrical supply in case of non-payment. Aggrieved by the threats, the respondent filed a writ petition in this Court.

3. Before the learned single Judge it appears to have been urged by the learned counsel for the respondent that it was utilising the supply of industrial current for feeding the motor and the dynamo which generated D.C. current for the last several years openly. It was contended that the respondent was not using the A.C. current supplied by the appellant for directly running the fans themselves. The appellant, it was urged, was, therefore, not entitled to charge at the rates applicable to the electrical energy supplied for light and fans. On the other hand, the appellants case was that the industrial power supplied by it was, in fact, being utilised for running the fans and consequently the appellant was justified in requiring payment at the rates applicable to the electrical energy for running fans. The learned single Judge took the view that from the pleadings of the parties "it is apparent there was a dispute between the parties whether there was an improper use of energy by the petitioner." The learned single Judge took the view that under sub-cl. (3) of Cl. VI of the Schedule to the Indian Electricity Act, 1910 (hereinafter referred to as the Act) where any difference or dispute arises as to the improper use of energy the matter shall be referred to an Electrical Inspector and decided by him. The learned Single Judge went on to hold that under S. 24 (1) of the Act the appellant was authorised to cut off the supply of energy after giving seven days clear notice in writing, where any person neglects to pay any charge for energy due from him but by reason of sub-section (2) of S. 24 of the Act "where any difference or dispute, which by or under this Act is required to be determined by the Electrical Inspector, has been referred to the Inspector before notice, as aforesaid, has been given by the licensee, the licensee shal












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