HIGH COURT OF MEGHALAYA AT SHILLONG
H.S. Thangkhiew, J.
Shree Sai Prakash Alloys Pvt. Ltd. - Appellant
Versus
Meghalaya Power Distribution Corporation Ltd. & Ors. - Respondents
WP(C). No. 152 of 2022
Decided On : 10-06-2022
electricity - disconnection of supply - [Electricity Act, 2003, Section 56] - The court dismissed the writ petition, allowing the respondent corporation to take further action for the realization of current and outstanding dues. The court emphasized that the matter was a commercial transaction between two parties and that no useful purpose would be achieved by keeping the matter pending before the court.
Fact of the Case:
The petitioner company challenged the disconnection of electricity supply to its plant, citing previous litigation and the failure to reach a settlement with the respondent corporation regarding outstanding dues.
Finding of the Court:
The court dismissed the writ petition, allowing the respondent corporation to take further action for the realization of current and outstanding dues.
Issues: Disconnection of electricity supply, outstanding dues, failure to reach a settlement, and the involvement of public revenue in a commercial transaction.
Ratio Decidendi: The court emphasized that the matter was a commercial transaction between two parties and that no useful purpose would be achieved by keeping the matter pending before the court.
Final Decision: The writ petition was dismissed, and the respondent corporation was granted liberty to take further action for the realization of current and outstanding dues. Each party was ordered to bear their own costs.
JUDGMENT
1. The writ petitioner company is before this Court assailing the disconnection of electricity supply to its plant on 21-04-2022. It is contended that the same has been done inspite of the petitioner having submitted a letter dated 21-04-2022, requesting the respondent corporation to allow 7(seven) days' time for placing a proposal for clearance of arrear dues of the petitioner company before the Board of Directors.
2. It is worthwhile to note that on the same issue, this is a second round of litigation as the petitioner company had approached this Court earlier by way of WP(C). No. 130 of 2022 against a notice of disconnection due to the non-payment of outstanding dues amounting to Rs. 51,86,17,743/- (Rupees Fifty-one crores, eighty-six lakhs, seventeen thousand, seven hundred and forty-three) only, which was the undisputed liabilities of the petitioner company. The said writ petition was disposed of by this Court vide order dated 12-04-2022, by directing the respondents that the proposal for payment of outstanding dues, as put up by the petitioner, be considered in the event a deposit of Rs. 1,00,00,000/- (Rupees One crore) only, was made within 24 hours against the unpaid bills.
3. It appears that thereafter the petitioner company had deposited the amount of Rs. 1 crore only, in compliance with the order dated 12-04-2022, but there was no resolution with regard to the proposal and counter proposal for settlement of the outstanding dues as the respondent corporation was only willing to allow the payment to be made in four equal instalments starting from 18-04-2022, which was not acceptable to the petitioner company.
4. With the matter situated thus, Mr. K.Paul, learned Senior counsel while moving the instant writ petition prayed that some consideration be given so that a viable amount and time frame be fixed to settle the outstanding dues, so as not to render the petitioner's company redundant. In consideration thereof, this Court directed the parties to attempt to work out a solution as to the amount of instalment and the time frame that would be acceptable to both parties.
5. By order dated 06-05-2022, this Court had noted at paras 3 and 4 as follows:
'3. The respondent Corporation through the learned counsel has submitted that the Corporation maintains their stand, that the outstanding dues of Rs.51,86,17,734/- should be paid in four monthly instalments. Mr. K.Paul, learned senior counsel for the petitioner submits that this proposition would be impossible for the petitioner Company to accede to immediately, especially considering the fact that the power has been disconnected and that the petitioner Company also as per an order dated 22.04.2022 of the Hon'ble Supreme Court has undertaken to deposit Rs. 5 crores within a period of 2(two) weeks from the date of the order, and the matter is due to come up again on 17.05.2022. He submits that as the matter needs further consideration by the petitioner Company, he prays that in the interim the petitioner may be permitted to deposit Rs. 1.5 crores within the next 10(ten) days which is in addition to Rs. 1. Crore that has already been deposited and yet to be adjusted against the outstanding dues, and on such deposit the respondent Corporation re-connect the electricity to enable the factory to function and generate income. It is further prayed that the matter be listed on 18.05.2022 for further consideration, and to allow the petitioner to positively come back with instructions, with regard to the settlement of the balance amount of the outstanding dues.
4. This Court on consideration of the prayer of the petitioner would like to remind the parties that this Court is not to be used as a negotiating table, but however, in view of the circumstances, wherein a settlement is being attempted to be arrived at, it is directed that in the interim until the next date, on the payment of Rs. 1.5 crores by the petitioner as undertaken today before this Court which shall be in addition to
AI
The court's decision highlighted the distinction between commercial transactions and public revenue, emphasizing that the court would not entertain matters that serve no useful purpose.
A petitioner can negotiate outstanding utility dues through structured payments while ensuring connection reinstatement upon compliance.
The pendency of proceedings before the Consumer Grievance Redressal Forum can influence the court's decision regarding the demand for settlement of outstanding dues and the issuance of disconnection ....
A writ mandamus can be issued to prevent collection of dues until outstanding amounts are adjusted.
A chronic defaulter can be permitted to pay dues in installments contingent on an initial deposit to avoid disconnection of services.
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