CAPRICORN ISPAT UDYOG PVT. LTD. Vs. DAMODAR VALLEY CORPORATION
LAWS(CAL)-2016-5-44
HIGH COURT OF CALCUTTA
Decided on May 26,2016

Capricorn Ispat Udyog Pvt. Ltd. Appellant
VERSUS
DAMODAR VALLEY CORPORATION Respondents

JUDGEMENT

- (1.) The petitioners in this writ proceeding under Article 226 of the Constitution of India complain of disconnection of their electricity supply line by the Damodar Valley Corporation, who are the generating as well as the distribution company so far as the petitioners are concerned.
(2.) There has been past dispute over payment of electricity dues in respect of supply of electricity to the factory of the petitioners situated in the village Nidhirampur under Gangajalghanti police station in the district of Bankura. But I do not consider it necessary to refer to such disputes while dealing with the controversy involved this writ petition. Relevant facts, so far as this writ petition is concerned is that on April 4, 2016, there was an arrangement between the parties that the petitioners would liquidate their past dues in ten instalments along with applicable delayed payment surcharge and the quantum to be paid in each instalment was specified to be Rs.1,14,66,114/ - . In a communication dated April 4, 2016 bearing No. Coml/16 -17/CIUPL/ 25 dated April 4, 2016 issued by the Chief Engineer (Commercial) of the Corporation, the dates on which such payment is to be made have been specified to be April 18, 2016, May 18, 2016, June 17, 2016, July 17, 2016, August 16, 2016, September 15, 2016, October 15, 2016, November 14, 2016, December 14, 2016 and January 13, 2017. The petitioners are also required to pay the current monthly power consumption dues within the due dates as per this arrangement. It has also been stipulated in this communication that the aforesaid payment shall be made on the basis of post -dated cheques and in case of dishonour or for non -payment of current power dues within the due dates, the power supply of the petitioners shall be disconnected, without any further reference.
(3.) Admitted position is that after April 18, 2016 a sum of Rs.57,00,00/ - has been paid and the petitioners sought for clearance of the rest of the dues pertaining to the instalment over a period of time. The Corporation has disconnected the supply line of the petitioners on May 5, 2016. It appears that there were subsequent discussions, between the petitioners and Corporation which did not bring any effective solution to the problem. Mr Banerji, learned counsel appearing for the petitioners, has submitted that disconnection of his client's supply was illegal as the same was effected without prior notice and is contrary to the provisions of section 56(1) of the Electricity Act, 2003 read with clause 20 of the supply agreement.;


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