The licensee must grant a new electric connection despite outstanding dues against a prior occupant if the current occupant agrees to pay the amount.

CORAM: HONOURABLE MR. JUSTICE ANIL KUMAR SINHA ORAL ORDER

6 16-12-2025 Heard learned counsel for the parties concerned.

2. The petitioner is a partnership, firm which has filed the present writ application for a direction to the respondents, South Bihar Power Distribution Company Limited (in short ‘SBPDCL’) to grant fresh electric connection to the petitioner under Section 43 of the Electricity Act, 2003 , read with Clause 4.1 of the Bihar Electricity Supply Code 2007 amended as on 19.05.2015.

3. The brief facts giving rise to the present writ application is that on 18.09.2023, the BISCOMAUN came out with advertisement to lease out building and structure on a long term lease basis. The building and structure was decided to give on lease to the petitioner vide resolution of allotment taken by BISCOMAUN on 05.07.2023 having broader terms and conditions of allotment dated 05.07.2023.

4. Mr. Suraj Samdarshi, learned counsel for the petitioner referring to the allotment letter at Annexure P/1, submits that as per the terms of allotment, the premises would be utilized for commercial purposes on the rent payable @ Rs. eight lacs per annum with statutory taxes etc. Clause 11 of the allotment letter said that the outstanding dues of the Electricity Department over the respondent no. 6 was Rs. 43,95,770/-, wherein Rs. 30,22,154/- was the original outstanding demand and Rs. 13,73,616/- was the delayed payment surcharge over the principal outstanding demand. It has further been clarified in the said letter that the petitioner would be at liberty to approach the Electricity Department for revision of the bill and after waiver of the delayed payment surcharge whatever amount would remain payable, the petitioner would make payment of the same in installments and the payment made to the licensee would be adjusted from the annual rent.

5. The allotment letter was formalized by lease agreement executed between the petitioner and respondent no. 5 on 18.09.2023 and in Clause 8 of the agreement, it has been reiterated that the previous dues of electricity on the leased land would be paid by the lessee to the extent of the settled amount. 50% of the lease rent was to be paid to the respondent no. 5 and 50% was to be adjusted against the payment of the settled amount in the Electricity Department.

6. It has further been submitted that earlier occupier of premise i.e. Shakti Cold Storage has dispute with the respondent no. 1 i.e. the licensee regarding unauthorized use of electricity by tampering of meter. Consequently, a punitive demand was raised amounting to Rs. 8,04,975.50/-, which Shakti Cold Storage had challenged before this Hon’ble Court in C.W.J.C. No 9309 of 2008. The writ petition was allowed and the punitive demand was quashed by this Court vide order dated 12.08.2008, the L.P.A. bearing L.P.A. No. 798 of 2008 preferred by the licensee has been dismissed vide order dated 16.07.2013 and the S.L.P. preferred by the licensee in S.L.P. No. 35067 of 2013 was also dismissed by the Hon’ble Apex Court vide order dated 25.11.2013.

7. Referring to the provisions of Chapter-IV under the heading New Service Connection of Supply Code having Clause 4.1, 3^rd proviso, substituted by 4^th amendment dated 19.05.2015, learned counsel submits that the licensee has the obligation to supply even if there are arrears of electricity dues against the owner or occupier or tenant of premises as a consumer. New connection shall not be denied to subsequent owner, occupier or tenant and the arrears of electricity dues, on the premise shall be recovered from the defaulting consumer under the provisions of the Bihar & Orissa Public Demand Recovery Act, 1914, or alternatively the arrears may also be transferred to another running account of the de