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2007 Supreme(UK) 545

2008 UAD 191
UTTARAKHAND HIGH COURT
Hon’ble Mr. Justice Prafulla C. Pant
Writ Petition No. 1136 (M/S) of 2007
M/S SHREE PRABHU SHARAN ISPAT PVT. LTD. – Petitioner
Versus
UTTARANCHAL POWER CORPORATION & ANR. – Respondents
Decided on : 07.11.2007

Advocates:
For the Petitioner:Mr.Naresh Pant, Advocate holding brief of Ms Menka Tripathi, Advocate
For the Respondents:Mr. B.D. Upadhyay, Advocate

Headnote:Electricity Act, 2003, Secs. 43, 50, 56 and Uttaranchal Electricity Regulatory Commission (Electricity Supply Code) Regulations, 2007, Regulation Nos. 2.3.2.1. and condition No. 2 of Para 2 of Appendix X to the Regulations — Purchaser in auction sale of the defaulter company's interest — Not liable to pay arrears of electricity consumption dues to entitle him to fresh electricity connection in the same premises — Regulation 2.3.2.1. not applicable to such purchaser of defaulting company's assets — Uttaranchal Power Corporation cannot refuse to give fresh electricity connection in same premises in name of such purchaser. (Paras 3, 6, 9, 11)

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        ¼izLrj 3] 6] 9] 11½

JUDGMENT

By means of this writ petition, the petitioner has sought writ in the nature of mandamus commanding the respondents to sanction fresh electric connection of 1800 K.V.A. to the petitioner, in the premises of the petitioner’s Company. A further mandamus has been sought directing the respondents not to release the outstanding dues of M/s J.K.M. Steels Pvt. Ltd., as a condition precedent for sanction of new connection.

2. Heard learned counsel for the parties and perused the record.

3. Brief facts of the case are that petitioner is owner/occupier of premises known as M/s Shree Prabhu Sharan Ispat Pvt. Ltd., 437 M, Garhinegi, Kashipur, District Udham Singh Nagar. Petitioner’s case is that he is a bona fide auction-[purchaser of the industrial unit, which was earlier known as M/s J.K.M. Steels Pvt. Ltd. The said auction appears to have been done under the provisions of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. it appears that M/s J.K.M. Steels Pvt. Ltd. could not repay the loan sanctioned to it by the Union Bank of India and said Bank took the possession of the unit and auctioned the same. It has been stated by the petitioner in the writ petition that he is a bona fide purchaser through auction got conducted by Union Bank of India and as such merely for the reason that he being new owner/occupier of the premises cannot be held liable to pay the outstanding electricity dues of M/s J.K.M. Steels Pvt. Ltd. Now the petitioner has taken a loan from the Bank to start his business from the premises and is in the need of new electricity connection for which he has moved an application to the respondents for 1800 K.V.A. supply. The application was made on 20th December, 2006, completing all necessary formalities. However, respondent no. 2 is insisting on the condition that unless the outstanding dues of M/s J.K.M. Steels Pvt. Ltd. are cleared by the petitioner, he cannot be given an electric connection sought by him. In para 13 of the writ petition, it has further been stated that vide Office Memorandum dated 16.08.2004 (copy Annexure 5 to the writ petition), the respondent no. 1 itself has issued directions to Directors, General Managers and Executive Engineers, working under it that if a new Management has purchased bona fide some industrial unit, clearance of outstanding dues of the previous owner/occupier will not be insisted upon. Claiming the petitioner-Company as a separate legal entity, it is alleged in the petition that the dues of previous Company, who owned the industrial unit cannot be recovered from the subsequent Company. With these averments, the writ petition is filed by the petitioner.

4. A counter affidavit has been filed on behalf of the respondents, in which Para 1 to 9 of the writ petition are not denied. However, it is stated that there are outstanding dues to the tune of Rs. 726 lacs from the M/s J.K.M. Steels Pvt. Ltd., which had already taken the electric connection in the premises in question. It is further stated that the Office Memorandum dated 16.08.2004, issued by respondent no. 1 only covers the units purchased from the U.P. Steel Financial Corporation. It is further stated in the counter affidavit that the petitioner has failed to complete all the formalities for getting supply of the connection and vide order dated 07.04.2007, the petitioner was directed to submit six documents so that his case of new connection may be considered. An affidavit dated 08th October 2007, has been filed on behalf of the petitioner with Application No. 2988 of 2007, wherein Annexure A-2, copy of the Government Order dated 27th August 2007, is enclosed which provide that Steel units be given electricity connections as per the Rules.

5. It is not disputed that premises in question were earlier occupied by M/s J.K.M. Steels Pvt. Ltd. It is also not disputed that under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 200


















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