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2025 Supreme(Online)(Tel) 15351

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
SUREPALLI NANDA, J
The Chief General Manager (Commercial), Telangana State Southern Power Distribution Company Limited – Appellant
Versus
Sri Abbineni Narayana Rao – Respondent
Writ Petition No.34539 of 2024



Advocates:
For the Appellants/Petitioners: Sri N.Sreedhar Reddy
For the Respondents: Ms. Nishtha

Property owners are liable for electricity debts of tenants, reaffirming obligations under statutory provisions and prior judicial rulings.

Headnote:(A) Electricity Act, 2003 - Section 2(15) - General Terms and Conditions of Supply - The owner of premises is responsible for settling all dues related to electricity service connections regardless of tenant defaults. The courts established criteria for connection versus reconnection based on prior arrears and ownership status. (Paras 32, 33, 117, 136)

(B) Appeal - Legal responsibility - The appeal scrutinizes the legality of the demand for arrears against the owner of rental property while recognizing the non-contentious nature of that demand due to the property owner's obligation under statutory provisions. The issues of hearing rights were handled tied to procedural fairness guidelines. (Paras 6-12)

Facts of the case:
Petitioners sought a writ to quash orders that declared the owner of premises not liable for arrears incurred by a tenant, arguing this finding contradicted both legal obligations and prior rulings. (Para 3)

Findings of Court:
Court upheld the rationale for responsibility of landowners for tenant dues, ruling prior appeals' dismissal was unsupported. Appeals partially allowed, defendant’s claims of non-liability were overturned. (Para 8)

Issues: Key issues included responsibilities for previous tenant electricity dues, procedural fairness in grievance handling, and the necessity of opportunity to be heard as related to claims against owners.

Ratio Decidendi: Legal obligations dictate that property owners bear responsibility for previous tenant dues, backed by judicial precedents affirming robust recovery provisions and inherent obligations of property ownership. (Paras 12-14)

Result: Writ Petition partly allowed.

Table of Content
1. owner's responsibility for tenant's dues. (Para 3)
2. procedural fairness in grievance handling. (Para 7 , 11)
3. court's ruling on statutory obligations. (Para 12 , 14 , 15)

ORDER:

Heard Sri N.Sreedhar Reddy, learned standing counsel appearing on behalf of the petitioners and Ms. Nishtha, learned counsel appearing on behalf of the respondent No.1.

2. The petitioners approached the Court seeking prayer as under:

“.........to issue a writ order or direction more particularly one in the nature of writ of certiorari by calling for the records and to quash the orders dated 09.09.2024 in Appeal No. 20 of 2024-25 and Appeal No. 23 of 2024-25 as arbitrary illegal, unjust and contrary to the law and facts of the case and to quash the same and pass........”

3. The case of the petitioners, in brief, as per the averments made by the petitioners in the affidavit by the petitioners in support of the present w rit petition, is as under:

The 1st respondent has given his premises bearing House No.5-9-285/12 on lease to one Mr. G.Ram Reddy in the year 2006 and the lessee Sri G.Ram Reddy had established a Pharma Company in the name of M/s. Meghana Pharma Company and has obtained a H.T.Service Connection bearing SC No.SEC1677, the said Service Connection was released on 28.12.2007 with a contracted maximum demand of 145 KVA under H.T.Category-I and the said Mr.G.Ram Reddy, had defaulted in payment of the current consumption charges from the month of April, 2014, as the current consumption charges were not paid the service connection was disconnected on 01.04.2013 and the same was terminated on 31.08.2013, the dues as on date of disconnection were Rs.47,69,164/-. The 2nd respondent had addressed the letter, dated 23.05.2014 to M/s. Meghana Pharma to pay an amount of Rs.29,28,263/- which are due towards current consumption charges and fuel surcharge adjustment for issuance of no due certificate.

It is further the case of the petitioners that since M/s.Meghana Pharma had not paid any amounts, petitioners initiated steps to recover electricity dues under APSEB Recovery of Dues Act, 1984 and APSEB Recovery of Dues Rules, 1985. Accordingly, Form-A notice was issued on 14.10.2014, Form-B notice was issued on 23.06.2015 and Form –C notice was issued on 22.03.2016, 25.04.2016, and on 08.11.2021. Letters, dated 04.05.2023, 05.07.2023, 31.01.2024 were addressed to the District Collector under the Revenue Recovery Act for realization of arrears by attaching the immovable properties for recovery of an amount of Rs.68,47,942.37/- including surcharge as on 31.01.2024. On 07.01.2017, one Mr. Anki Reddy, on 25.08.2020 one Mr. P.Bhaskar Reddy had submitted a representation for restoration of power supply issued in the name of M/s. Meghana Pharma in (P.Ltd.) under Sick Unit Revival Scheme and though the approval was granted by the Chief General Manager vide letters, dated 06.02.2017 and 12.02.2021 respectively for restoration of power supply under Sick Unit Revival Scheme subject to payment of the said amounts, but as the amounts were not paid, the power supply was not restored. As the arrears Were not paid a notice dated 13.06.2022 was issued to the 1st respondent to pay an amount of Rs.23,81,893/- due towards service connection bearing No. SC.No.HT SEC 1677 within a period of 15 days from the date of receipt of said notice with a clear stipulation in the said notice that failing which the service connection bearing LT-SC.No.S6004023 shall be disconnected by treating the same as link service as per clause 10 of regulation 7 of 2013.

It is further the case of the petitioners, that the 1st respondent had submitted a representation, dated 16.10.2022 requesting the petitioners to waive 50% of the charges and to restore the LT Power Supply, since the arrears were not paid the petitioners herein had initiated action to recover the same and the 1st respondent filed complaint before the Consumer Grievance Redressal Forum of TGSPDCL (Greater Hyderabad Area) for r

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