Kerala High Court
K.G. Purushothaman vs Kerala State Electricity Board And Anr. on 11 April, 2007
Equivalent citations: AIR2007KER201, 2007(2)KLJ185, AIR 2007 KERALA 201, 2007 (5) ALL LJ NOC 782, 2007 (6) ABR (NOC) 903 (KER), 2007 (5) AKAR (NOC) 652 (KER), 2007 AIHC NOC 465, (2007) 2 KER LJ 185, (2007) 2 KER LT 827
Bench: K.S. Radhakrishnan, M.N. Krishnan
JUDGMENT
K.S. Radhakrishnan, Actg. C.J.
1. Question that is posed for consideration in this case is whether the Electricity Board can demand arrears of electricity dues including penalty incurred by a previous consumer from a new owner/occupier /allottee of the same premises as a pre-condition for electricity connection under Regulation 15(e) of the Conditions of Supply of Electricity Energy after coming into force of the Electricity Act. 2003.
2. Learned single Judge following a Full Bench decision of this Court in Suraj v. KSEB, ILR 2005 (3) Kerala 618 : AIR 2006 Ker 194 dismissed the writ petition holding that no direction can be given to the Electricity Board to give electricity supply to the petitioner unless the arrears are cleared. Counsel appearing for the appellant submitted that after coming into force of the Electricity Act, 2003, the Supply Code 2005 and the KSEB Terms and Conditions of Supply 2005, Regulation 15(e) of the Conditions of Supply of Electrical Energy and the Full Bench decision of this Court in Suraj's case are not applicable. Learned Counsel appearing for the Board submitted that Regulation 15(e) of the Conditions of Supply of Electrical Energy is being followed even after coming into force of the Electricity Act, 2003 and hence the principle laid down by the Full Bench in Suraj's case would apply even after coming into force of the Electricity Act, 2003.
3. Counsel appearing for the petitioner referred to Regulation 7 of the Kerala State Electricity Board Terms and Conditions of Supply, 2005 and submitted that the said provision only enables the Board to recover the arrears from the previous consumer/ owner/occupier of the premises and not from the person who purchases the premises. Reference was also made to Regulation 12 of the Kerala State Electricity Supply Code 2005 and submitted that arrears can be realised only from the previous consumer.
4. We are of the view that the arguments raised by the petitioner cannot be sustained not only on the basis of the principle laid down by the Full Bench in Suraj's case AIR 2006 Ker 194 and also due to the fact that Regulation 12 of the Kerala State Electricity Supply 2005 has already stayed by the Kerala State Electricity Regulatory Commission vide its proceedings dated 27th February 2006. Order reads as follows:
The Kerala State Electricity Board vide letter under reference has informed that Clause 12 of the Kerala Electricity Supply Code, 2005 i.e. "Dues of previous consumer -- If a purchaser of a premise requires to have a new connection as the earlier connection has already been dismantled after disconnection, the arrear if any shall be realized from the previous owner/occupier of the premises and not from the purchaser" provides sufficient opportunity for defaulting consumers to avoid remitting previous arrears and hence requested to modify the clause to protect the interest of the licensee as given below.
However the purchaser (new consumer) shall deposit an amount equivalent to the previous arrears to the licensee, which will be reimbursed if realized from the previous owner/occupier by revenue recovery action.
The Commission in the meeting held on 27-2-2006 discussed the issue. After detailed deliberation it is decided to stay the above clause pending finalization of the proposal submitted by the KSEB vide letter under reference cited above.
Following the above decision of the Kerala State Electricity Regulatory Commission, Kerala State Electricity Board issued circular dated 16-3-2006 which reads as follows:
CIRCULAR Sub : Clause 12 of the Kerala Electricity Supply Code-stay-reg.
Ref : Letter No. KSERC/T&C of Supply amendment/2006/183 dated 27-2-2006.
In response to the Board's request for suitably amending Clause 12 of the Supply Code, the Kerala State Electricity Regulatory Commission has informed that in view of the fact that certain consumers are misusing Clause 12 (via -- Dues of previous consumer) of the Kerala Electricity Supply Code 2005, published by the Commission, implementation of the said clause is stayed.
It is directed that consequent to the stay implemented by the Commission in respect of Clause 12 of the Kerala Electricity Supply Code viz-Dues of previous consumer, the provisions of Regulation 15(e) of the erstwhile Conditions of Supply of Electrical Energy shall be followed in respect of the dues of previous consumer. Regulation 15(e) of the Conditions of Supply states that "Reconnection or new connection shall not be given into any premises where there are arrears on any account due to the Board pending payment, unless the arrears, including penalty, if any are cleared in advance. (if the new owner/occupier/allottee remits the amount due from the previous consumer, the Board shall provide reconnection or new connection depending on whether the service remains disconnected/dismantled as the case may be. The amount so; remitted will be adjusted against the dues from the previous consumer, if the Board gets full dues from the previous consumer through Revenue Recovery action or other legal proceedings, the amount remitted by the new owner/occupier to whom connection has been effected shall be refunded. But the amount already remitted by him/her shall not bear any interest) The above direction shall be strictly followed by all concerned." The Kerala State Electricity Supply Code has been framed by the Kerala State Electricity Regulatory Commission. Regulatory Commission itself has stayed the operation of Regulation 12 which says that if a purchaser of a premise requires to have a new connection, as the earlier connection has already dismantled after disconnection, the arrear, if any, shall be realized from the previous owner/occupier of the premises and not from the purchaser. Consequently, Regulation 7 of the Kerala State Electricity Board Terms and Conditions of Supply, 2005 also cannot be given effect to. Further by virtue of Section 185 of the Electricity Act, 2003, Regulation 15(e) of the Conditions of Supply of Electrical Energy would continue to apply.
4A. Under such circumstance, we are of the view, even after coming into force of the Electricity Act, 2003 if a prospective consumer applies for electric connection to a premises of which there is previous dues, unless and until the same is cleared. Board is not duty bound to give electric connection to that premises. If the new consumer remits the arrears and complied with other formalities the electric connection has to be given by the Board and Board can proceed against the previous consumer and recover the arrears and the amount realized, be adjusted towards the amount received from the prospective consumer. Under such circumstance we find no error in the judgment of the learned single Judge holding that the principle laid down by the Full Bench would apply to the facts and circumstances of this case. Appeal lacks merit and the same is dismissed.