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Jharkhand High Court · body

2013 DIGILAW 52 (JHR)

Laxmi Business and Cement Company Private Ltd. v. Jharkhand State Electricity Board

2013-01-09

ALOK SINGH

body2013
ORDER By the Court.-In all these writ petitions identical question of law is involved as to whether consumer can be asked to deposit the security in pursuance of Clause (a) of sub-section (1) of Section 47 of the Electricity Act, 2003 (for short "the Act") even if consumer has opted to take supply through a pre-payment meter? 2. Undisputedly all the writ petitioners are consumers of the Jharkhand State Electricity Board prior to the enforcement of the Act. Licensee has issued different notices to the consumers i.e. the petitioners to deposit the security amount while exercising the power under Clause (a) of sub-section (1) of Section 47 of the Act. Having received the notices all the petitioners have written letters to the licensee to the effect that they may be provided supply of electricity through a pre-payment meter and. Therefore, they may be exempted in making deposit of the security in view of Section 47 (5) of the Act. 3. Section 47 of the Act reads as under : 47. Power to require security.-(1) Subject to the provisions of this section a distribution licensee may require any person, who requires a supply of electricity in pursuance of Section 43 to give him reasonable security as may be determined by regulations for the payment to him of all monies which may become due to him (a) in respect of the electricity supplied to such person; or (b) where any electric line or electrical plant or electric meter is to be provided for supplying electricity to such person in respect of the provision of such line or plant or meter and if that person fails to give such security the distribution licensee may if he thinks fit refuse to give the supply of electricity or to provide the line or plant or meter for the period during which the failure continues. (2) Where any person has not given such security as is mentioned in subsection (1) or the security given by any person has become invalid or insufficient the distribution licensee may by notice require that person within thirty days after the service of the notice to give him reasonable security for the payment of all monies which may become due to him in respect of the supply of electricity or provision of such line or plant or-meter. (3) If the person referred to in subsection (2) fails to give such security, the distribution licensee may, if he thinks fit, discontinue the supply of electricity for the period during which the failure continues. (4) The distribution licensee shall pay interest equivalent to the bank rate or more, as may be specified by the concerned State Commission, on the security referred to in sub-section (1) and refund such security on the request of the person who gave such security. (5) A distribution licensee shall not be entitled to require security in pursuance of Clause (a) of sub-section (1) if the person -requiring the, supply is prepared to take the supply through a pre-payment meter." 4. Clause 10.1 of the Electricity Supply Code Regulations, 2005 reads as under : "10.1 Distribution Licensee may require any person to whom supply or additional supply of electricity has been sanctioned to deposit security amount. Provided that a person to whom supply of electricity has been sanctioned through prepayment meter shall not be required to deposit any security amount: Provided further that a consumer who has deposited security amount and subsequently opts and" is allowed to receive supply through a pre-payment, shall be refunded such security deposit by way of adjustment to the pre-payment credit to the account of such consumer from which the value of his future consumption is to be deducted." 5. There is no dispute on the point that while exercising the power conferred by Clause (x) of sub-section (2) of Section 181 read with Section 50 of the Electricity Act, Jharkhand State Electricity Regulatory Commission has notified the Electricity Supply Code 2005 on 28.7.2005. If the provisions of Section 47 of the Act and Clause (x) of the Supply Code Regulation are read together the only interpretation would be that consumer shall not be asked to deposit the security amount, if the consumer opts for supply through pre-payment meter. However, if security amount has already been deposited and thereafter the consumer opts and is allowed to receive supply through pre-payment meter such security deposit by the consumer shall be refunded. 6. As observed hereinabove, all the consumers, in the present case, are the consumers prior to the enforcement of 2003 Act and they have deposited the security amount initially for supply of the electrical energy. 6. As observed hereinabove, all the consumers, in the present case, are the consumers prior to the enforcement of 2003 Act and they have deposited the security amount initially for supply of the electrical energy. However, now the additional amount of security is being demanded by the Board after calculating the same, as per the provision of the Supply Code. It is also undisputed that having received the notices of deposit of additional security all the consumers herein have opted for supply through a pre-payment meter. None of them ever applied for supply of a pre-payment meter before receiving the notice to deposit additional security. 7. Mr. Ajit Kumar, learned counsel appearing for the licensee Board submits that for one reason or another till day, pre-payment meter could not be obtained by the licensee nor till day any tender has ever been floated for supply of pre-payment meter. He, however. submits that now he has received instructions to submit that every efforts shall be made by the licensee to obtain pre-payment meter so that the same may be installed on the request of the consumers who intend to take supply through a pre-payment meter. Mr. Ajit Kumar further submits that the present petitioners-consumers who have not already deposited the security amount, may be provided concession to deposit the additional security amount in four equal monthly installments. 8. On the other hand. Mr. D.K. Pathak, learned counsel for the petitioners and Mr. N.K. Pasari. learned counsel for the petitioner in W.P. (C) No. 5802 of 2012, fairly contend that they understand the difficulty of the Board that the licensee Board, for the reasons best known to them could not obtain the pre-payment meter. However, for the fault and negligence of the Board, a consumer who is interested to take supply through pre-paid. Meter, as per the norms, should not be allowed to suffer, by asking him to deposit the additional security amount, as per the calculation made thereon in accordance with the Electricity Supply Code Regulation. 9. Having heard learned counsel appearing for the parties and having perused the record in the humble opinion of this Court, the licensee Board in this State seems to be sleeping over the matter. The licensee Board should have acted promptly for supply of the pre-paid meters so that the same could have been installed on the request of the respective consumers. 10. The licensee Board should have acted promptly for supply of the pre-paid meters so that the same could have been installed on the request of the respective consumers. 10. However, the fact remains that the Board has not called for the supply of pre-paid meter as yet. Therefore, keeping in mind the undertaking given by Mr. Ajit Kumar learned counsel appearing for the Board, in the peculiar facts and circumstances of the case. I direct that the Board shall obtain pre-paid supply meters in any case within ten months from today and shall install the same on the request of respective petitioners, in any case within one year from today. The petitioners-consumers, who have not already deposited the additional security, shall deposit the same with the Board. The consumer, who intends to seek concession on security deposit through installments may move an application before the Board within fifteen days from today and on receiving such application and undertaking the Board shall grant concession of six equal monthly installments so that the additional security demand may be deposited accordingly. It is, however made clear that after the installation of the pre-paid supply meters on demand the additional security so deposited shall be refunded to the consumers-petitioners after adjusting the outstanding bill. if any. However, it is made clear that if the Board fails to install pre-paid supply meters as requested by the petitioners within a year from today in that event, the Board has to refund the additional security amount deposited by the petitioners-consumers after adjusting the outstanding bill, if any. In the event of non-installing of prepaid supply meters within a year, the Board shall refund security amount to the petitioners-consumers after adjustment of outstanding bill. if any, along with interest, at the rate of 8 per cent per annum. Any amount already deposited by the consumer, may be adjusted towards the demand of additional security. 11. All the writ petitions stand disposed of accordingly. Petition disposed of.