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2021 Supreme(Online)(Guj) 4043

GUJARAT HIGH COURT
HONOURABLE DR. VINEET KOTHARI, HONOURABLE MR. B.N. KARIA, JJ
CHIEF ENGINEER UTTAR GUJARAT VIJ CO. LTD. – Appellant
Versus
GUJARAT MICROWAX LTD. – Respondent
LETTERS PATENT APPEAL NO. 618 of 2013 | R/SPECIAL CIVIL APPLICATION NO. 6164 of 2004



Advocates:
For the Appellants/Petitioners: MS LILU K BHAYA
For the Respondents: MR BHARAT T RAO

Landlords can temporarily supply electricity to tenants without it being classified as unauthorized supply, provided prior inspections show compliance with relevant safety standards.

Headnote:(A) Electricity Act, 1910 - Conditions and Miscellaneous Charges for Supply of Electrical Energy - Issue of supplementary bill for unauthorized supply of energy - Learned Single Judge directed recalculation of the bill and refund as per approved formula from 14th August, 1998 till 21st August, 1998. Primary contention revolves around the interpretation of conditions pertaining to unauthorized resale versus temporary supply between landlord and tenant. (Paras 4.6, 6.1)

(B) Definition of unauthorized supply - Clause 24 permits landlords to supply temporary power to tenants under certain conditions, which was ruled to apply in this case. (Paras 6)

(C) Court found that earlier inspections showed no malpractice, hence the bills issued post the inspections were unwarranted. (Paras 7.5)

Facts of the case:
The petitioner, a manufacturing company, agreed to supply temporary power to its tenant after a power failure, leading to accusations from the electricity board of unauthorized resale.

Findings of Court:
The submissions supporting the legality of the supplementary bill were not sustained given prior inspections showed compliance.

Issues: Whether supplying power temporarily to a tenant constitutes unauthorized resale against provisions of the Electricity Act?

Ratio Decidendi: The court affirmed that the relationship of landlord and tenant does not fall under unauthorized supply of energy, given the circumstances.

Result: Letters Patent Appeal dismissed.

Table of Content
1. factual background of the case (Para 2)
2. arguments of both parties (Para 4 , 5)
3. court's analysis and application of law (Para 6)
4. determination of unauthorized supply of energy (Para 7 , 8 , 9)
5. final decision on the appeal (Para 10)

ORAL JUDGMENT

(PER : HONOURABLE MR. JUSTICE B.N. KARIA)

1. Being aggrieved with the judgment and order dated 31st January, 2013 passed by the learned Single Judge in Special Civil Application No. 6164 of 2004 partly allowing the petition and directing the petitioners to charge the bill as per approved formula from 14th August, 1998 till 21st August, 1998 and to recalculate the amount and refund the amount, if the amount is deposited or recovered or in alternate, to give adjustment in the subsequent bills of the Respondent within a period of two months from passing of the order, the Appellants-original respondents (UGVC Ltd.) have preferred this Letters Patent Appeal under Clause 15 of The Letters Patent.

2. The facts leading to the present Letters Patent Appeal, in nutshell are as under :-

2.1 The Petitioner is private Limited Company under the provisions of Companies Act, 1956 and Petitioner-Company is engaged in the manufacture of Microcrystalline Cellulose Powder at its factory situated at Survey No. 291/1 & 2, Nandasan, Taluka Kalol, Dist. Mehsana. The Petitioner is a consumer of Respondent- Gujarat Electricity Board having contracted load of 325 KVA and its consumer number is HT 19654. The Petitioner-Company entered into Lease Agreement with M/s. Shaili Polymers Pvt.Ltd. (for short “SPPL”) for lease of 6076 sq. mtrs. of land of Petitioner's ownership in the said premises at annual rent of Rs. 5,000/- .

2.2 The said SPPL is also a consumer of Respondent -Gujarat Electricity Board in the LTP category, having connected load of 125 HP. On 14.8.1998, the Petitioner's Unit was checked by the Checking Squad of the Respondent-Board and everything was found upto the standard. On 17th August, 1998, the cable of GEB, which supplies power to SPPL, was burnt and SPPL informed the GEB in writing about the same and requested the Board to replace the same forthwith as SPPL is a continuous industry and without power, SPPL would suffer loss of lacs of rupees. SPPL requested the Petitioner to supply to SPPL on temporary basis so that no further loss can be caused.

2.3 Considering the request and hardship faced by the tenant i.e. SPPL, Petitioner showed its readiness to supply 20 KW power to SPPL on temporary basis and intimated the GEB by letter dated 17th August, 1998 that the Petitioner will supply power to SPPL because of the reasons stated in the letter. Again, on 21st August, 1998, Inspection Team of GEB came and inspected the premises of the Petitioner and after inspection, inspection note was prepared alleging that the Petitioner has unauthorisedly supplied electric energy to SPPL and therefore, electric connection of the Petitioner was disconnected and the Respondent -Board had issued bill to the Petitioner for Rs. 4,74,262/- for committing breach of the conditions of electric energy by resale of energy.

2.4 Being aggrieved by the said Bill, the Petitioner filed Special Civil Application No. 6951 of 1998 before this Court. This Court was pleased to pass interim order on 29th August, 1998 and the Petitioner was asked to deposit Rs. 50,000/- with cost and Board was further directed to restore power connection to the Petitioner's unit forthwith. After lapse of more than two years, the Respondent-Board issued a revised Bill dated 20.6.2000 for Rs.17,42,344/- for the cost to the Petitioner on the ground that the Audit Department of the Government of Gujarat has raised objection and there was mistake on the part of the officers of Respondent-Board in calculating the amount of Bill issued in August, 1998. The said Bill was also objected by the Petitioner by its letter dated 27th June, 2000. Special Civil Application preferred by the petitioner was pending before this Court since 1998.

2.5 Therea

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