LAXMI BUSINESS AND CEMENT COMPANY PRIVATE LTD. Vs. JHARKHAND STATE ELECTRICITY BOARD
LAWS(JHAR)-2013-1-196
HIGH COURT OF JHARKHAND
Decided on January 09,2013

Laxmi Business And Cement Company Private Ltd. Appellant
VERSUS
JHARKHAND STATE ELECTRICITY BOARD Respondents

JUDGEMENT

- (1.) 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. 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."
(3.) 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." ;


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