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5. Since the electricity connection at the said premises was permanently disconnected with effect from 1 April 2001 and in order to commence its business/manufacturing activity, the petitioner made an application to MSEDCL (erstwhile MSEB) requesting for a fresh electricity supply connection in the petitioner's own name. As MSEDCL failed to process the petitioner's application, the petitioner's made a representation to the MSEDCL, which also did not find favour with the said authority. The petitioner was also informed by concerned 6 June 2025 WP2734_2025-16.05.2025.DOC officers of MSEDCL that to avail a fresh connection, it would be subject to the petitioner clearing the arrears of electricity charges that were due and payable by the previous occupant/owner of the premises.

9. A Division Bench of this Court consisting of Palshikar and Munshi, JJ delivered a Judgment on 19 December 2002 in Super and Stainless Hi- Alloys Ltd. Vs. State of Maharashtra & Ors. by which it struck down a commercial circular issued by MSEB on 19 December 1998 (Circular

607). By the circular that was challenged before the Division Bench, MSEB had modified an earlier circular dated 18 June 1993 under which a purchaser of an undertaking under Section 29 of the State Financial Corporations Act, 1951 had been granted an option of either getting a reconnection by paying the arrears of the outgoing consumer or to get a fresh supply of electricity without clearing the arrears of the outgoing consumer. By circular 607 the said provision was withdrawn and it was stipulated that re-connection or a fresh supply would be released only after the arrears of the Board were cleared. This circular was struck down by the Division Bench, following the Judgment of the Supreme Court in Isha Marbles. An Appeal against the judgment of the Division Bench has been admitted by the Supreme Court and is pending. The point to be noted at this stage however, is that the Judgment of the Division Bench was to the enforcement of the statutory regulations of 2005. As already noted earlier, the Judgment of the Division Bench was delivered on 19 December 2002 6 June 2025 WP2734_2025-16.05.2025.DOC which was before the statutory regulations were enforced. Once the regulations have been enforced, a prospective applicant for electric supply would be governed by those regulations. The Petitioners before the Court have also challenged the circular dated 7 May 2007. The circular inter alia makes interim arrangements for the grant of electric connections during the pendency of the proceedings before the Supreme Court. For the reasons, which have been indicated earlier, prima facie, it would not be possible to accede to the contention of the Petitioners that they would be entitled to the grant of an electric connection without clearing the unpaid dues. The Petitioners are subject to Regulation 10.5. However, in terms of the provisions of Regulation 10.5, the Petitioners would be liable only to the extent of a maximum period of six months of the unpaid charges in respect of electricity supplied to the premises.

171. In the state of Maharashtra, the terms and conditions under which the MSEB supplied electrical energy were provided in the MSEB Conditions of Supply. The MSEB Conditions of Supply were made effective from 1 January 1976. The MSEB Conditions of Supply laid down a detailed procedure in respect of the application for supply of electrical energy, payment of bills, procedure to be adopted in case of prejudicial use of electrical energy and the terms on which the supply of electrical energy is released to a consumer. Condition 23 of MSEB Conditions of Supply provides for assignment and transfer of agreement.

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178. In Maharashtra, the right of the Electric Utilities to demand outstanding dues is traceable to provisions across different time periods:

178.1. Up to enactment of the 2003 Act on 10 June 2003: The governing laws are the 1910 Act and the 1948 Act. The MSEB Conditions of Supply were framed under Section 49 of the 1948 Act.

The MSEB Conditions of Supply which were made effective from 1 January 1976 would apply;