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2006 Supreme(Online)(Del) 5

DELHI HIGH COURT
R S Sodhi, J
Tata Motors Ltd. v. NDMC and Others
Letters Patent Appeal No. 1/2005



Electricity tariffs for premises depend on the nature of use; temporary stays do not establish residential occupancy.

Headnote:The Letters Patent Appeal contests a Single Judge's decision regarding the applicability of domestic versus non-domestic electricity tariffs for premises used by a company for employees. The court found no grounds for charging the appellant under non-domestic use criteria, aligning with precedents that define residential use based on the extent of occupancy. Consequently, the appeal is dismissed, requiring payment of non-domestic tariffs with interest during certain periods.

Table of Content
1. the appeal challenges a judgment. (Para 1 , 2)
2. establishing whether usage is domestic or non-domestic. (Para 3 , 4 , 5)
3. determinants of misuse in terms of tariff. (Para 6 , 7 , 8 , 9)
4. prior legal findings and definitions of residence. (Para 10 , 11 , 12)
5. relation of usage and definitions from relevant cases. (Para 13 , 14 , 15 , 16 , 17)
6. the nature of guests’ stay versus residential intent. (Para 18 , 19 , 20 , 21)
7. final decision and implications for payment. (Para 22 , 23 , 24 , 25 , 26)

1.This Letters Patent Appeal has been filed against the impugned judgment of learned Single Judge dated 30/11/2004 We have heard learned counsel for the parties and have perused the record.

2.The facts in detail have been set out in the judgment of learned Single Judge and, hence we are not repeating the same except where necessary.

3. The short question in this case is whether the appellant is liable to pay the electricity charges in question under the category of 'domestic use' or under the category 'non domestic use'.

4. The appellant is a company registered under the Indian Companies Act . The appellant purchased four flats in Gauri Sadan, Hailey Road, New Delhi bearing Nos. F101, F201, E501 and C601 at Gauri Sadan, located at 5 Hailey Road, New Delhi. The appellant applied for supply of electricity for domestic use to the respondents. It is alleged that the petitioner's executives / officials travel frequently from various cities in India to the Delhi office on training and official works and for this purpose the appellant has decided to maintain a transit accommodation for stay of such officers / executives for a extending from a few days to a few months.

5. It is alleged in para 6 of the writ petition that the respondents' had carried out an inspection of the property at C601, Gauri Sadan, Hailey Road, New Delhi and only thereafter the electricity connection for domestic use was granted in the name of the appellant company. Bills were received all along for the payment of electricity charges under the tariff for domestic use / residential accommodation as per the terms and conditions of supply. Out of the aforesaid four flats three flats, bearing Nos. E501, F101 and F201 in Gauri Sadan, Hailey Road, New Delhi though mutated in the name of the appellant but the electricity meter was not transferred in the name of the appellant and bills continue to come in the name of the original owners for these three flats, on which the payment is made by the appellant. The mutation of the title deeds have been recorded in the name of NDMC and the property tax has been paid by the petitioner / appellant. These flats are being used by the officials / executives and the directors of the company during their travel to Delhi as a trans it residential accommodation. No amount is charged from those persons who stay in these accommodation.

6. It is alleged in para 9 of the petition that the petitioner was regularly paying the electricity charges for these flats on the basis of domestic use. However, suddenly on 13/09/2000, a letter from the Commercial Department Office of Executive Engineer, NDMC was received alleging that during the respondent's site inspection on 13/07/2000, it was observed that the electricity connection installed at Flat No. C601, Gauri Sadan, sanctioned for domestic purpose has been misused by using the premises for Non Domestic purpose i.e., for Guest House of the petitioner company. In the said letter it was further stated that the said discrepancy amounted to misuse of electricity connection and accordingly non domestic tariff along with the misuse charges @ 200% will be charged with effect from the last three months from the date of inspection i.e., 13/04/2000. A copy of the letter dated 25.8.2000 is annexed as Annexure 'P3'.

7. In reply to the aforesaid letter the petitioner sent letter dated 13/09/2000, stating that the premises in question were transit residential quarters and used only for accommodatin



















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