2017 Supreme(All) 2848
IN THE HIGH COURT OF ALLAHABAD
V.K. SHUKLA, ASHOK KUMAR, JJ.
KALAWATI RANA - Appellant
Versus
U.P. POWER CORPORATION LTD. - Respondent
Writ C. No. 9766 of 2017
Decided on : 06-03-2017
Advocate Appeared:
For the Appellant :Keshav Dhar Tripathi, Advocate
For the Respondent:Rahul Pandey, Advocate
Headnote:
Electricity Connection - Liability for Arrears - Electricity Supply Code, 2005 - 4.1, 4.3(f) - The court discussed the provisions of the Electricity Supply Code, 2005, particularly 4.1 and 4.3(f), which stipulate the obligations of the licensee to supply electricity and the requirement for a No-Dues Certificate in case of arrears of electricity dues in premises where ownership has changed. The court also referred to the interpretation of similar provisions in a previous case and the principles laid down by the Supreme Court regarding recovery of electricity dues from new owners.
Fact of the Case:
The petitioner purchased a house and applied for a new electricity connection, but the application was not entertained due to outstanding electricity dues against the previous owners. The petitioner argued that as per the sale deed, she was not liable for the dues. The respondent contended that a No-Dues Certificate was required as per the Electricity Supply Code, 2005.
Finding of the Court:
The court found that the Electricity Department was right in not providing the electricity connection until a No-Dues Certificate was produced, as per the provisions of the Electricity Supply Code, 2005.
Issues: The main issue was the liability for outstanding electricity dues on the premises after a change in ownership.
Ratio Decidendi: The court relied on the provisions of the Electricity Supply Code, 2005, and the interpretation of similar provisions in a previous case, as well as the principles laid down by the Supreme Court regarding recovery of electricity dues from new owners.
Final Decision: The writ petition was disposed of with the direction that if the entire recovery dues of the erstwhile owner were deposited and verified by the authorities, a No-Dues Certificate should be issued as provided in the Electricity Supply Code, 2005, and further action should be taken accordingly.
1. Smt. Kalawati Rana wife of Sri Man Singh Thakur is before this Court with the grievance that she has purchased the premises in question from Naresh and Sumesh, but her application for grant of new electricity connection has not at all been entertained on the premises that there is electricity dues against the aforementioned erstwhile owners of the house in question.
2. Petitioner has submitted that she has purchased the house in question from Naresh and Sumesh by way of registered sale deed dated 13.12.2012 and as per the terms and conditions of the sale deed, electricity dues is liable to be paid by the erstwhile owner and petitioner has no liability to pay any due towards electricity charges.
3. Petitioner has proceeded to make a mention that she intended to have new electricity connection, in view of this, she has been approaching the authority concerned, but as there was already electricity connection in the name of Naresh and Sumesh of the said house, and there has been huge outstanding dues of electricity dues against them, in view of this, application of petitioner for grant of new electricity connection is not being entertained and thus petitioner is before this Court.
4. Sri K.D. Tripathi, learned counsel for the petitioner has contended that once liability inter-se party has been settled in the sale deed, then such liability cannot be fastened upon the petitioner and petitioner cannot be forced to deposit the outstanding dues toward electricity connection of erstwhile owner of the house.
5. Sri Rahul Pandey, learned counsel for the respondent no.2 on the other hand contended that as per paragraph 4.1 of the Electricity Supply Code, 2005, 3rd proviso, in case of arrears of electricity dues in respect of any of old consumers/premises where ownership has changed, the new connection shall be released to the new owners only after submission of No-Dues Certificate as provided in Clause 4.3(f), and in view of this, it has been contended that whatever objections, and petitioner is obligated to ensure payment.
6. In order to appreciate respective arguments, paragraph no. 4.1 of the Electricity Supply Code, 2005 is being extracted below:-
4.1 Licensee's obligation to supply :- The Licensee shall on an application by the owner or occupier of any premises, located in his area of supply, give supply of electricity to such premises within the one month after receipt of completed application showing payments of necessary charges and other compliance.
Provided where such supply requires extension of distribution mains, or commissioning of new sub-stations, the distribution Licensee shall supply the electricity to such premises immediately after such extension or commissioning or within such period as specified by the Commission in Clause 4.8.
Provided also in case of application for supply from a village or hamlet or area wherein no provision for supply of electricity exists, the Commission shall extend the time period for provision of supply appropriately on a case to case basis.
Provided further that in case of arrears of electricity dues in respect of any of old consumers/premises where ownership has changed, the new connection shall be released to the new owners only after submission of No-Dues Certificate as provided in Clause 4.3(f).
And provided that if there are arrears of electricity dues on a premises, a new connection shall not be released to a new applicant/or the old consumer on the same premises. The connection shall also not be released if.
(i) The applicant (being an individual is an associate or relative (as defined in Section 2 and 6 respectively of the Companies Act, 1956) of the defaulting consumer,
(ii) Or where the applicant being a company or body corporate or association or body of individuals, whether incorporated or not, or artificial juridical person, is controlled, or having controlling of interest in the defaulting consumer, provided, the licensee shall not refuse electric connection on this ground, unless