K. C. NINAN versus KERALA STATE ELECTRICITY BOARD & ORS.

K. C. NINAN versus KERALA STATE ELECTRICITY BOARD & ORS.

The Court held that (i) the duty to supply under Section 43 is not absolute and is subject to payment of price, charges and other regulatory compliances; (ii) supply is to the consumer (person) and the consumer becomes liable for charges with respect to the particular premises for which supply is sought; (iii) State Commissions and Electricity Boards possess authority under Sections 50 and 181 (and s.49 under the 1948 Act) to frame Supply Codes/conditions which can validly require payment of arrears of previous consumers by subsequent owners as a precondition for grant of supply, and such subordinate legislation can create a statutory charge or recovery mechanism where within the...

Parties
Appellant: K. C. Ninan; Respondent: Kerala State Electricity Board & Ors.
Jurisdiction
India
Judgment Date
19 May 2023
Procedural Posture
Civil Appeal / Final Judgment
Legal Topics
Universal Service Obligation (section 43), Recovery of Electricity Arrears From Subsequent Purchasers, Statutory Conditions of Supply and Supply Codes (section 50), Creation and Enforcement of Statutory Charge/encumbrance, Limitation and Section 56(2), Interpretation: Ejusdem Generis, Effect of Auction Sales on 'as Is Where Is' Basis
Electricity Law Property Law Administrative/regulatory Law Universal Service Obligation (section 43) Recovery of Electricity Arrears From Subsequent Purchasers Statutory Conditions of Supply and Supply Codes (section 50) Creation and Enforcement of Statutory Charge/encumbrance Limitation and Section 56(2) +2 more

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Parties

K. C. Ninan

Appellant

Kerala State Electricity Board & Ors.

Respondent

Procedural Posture

Civil Appeal / Final Judgment

Legal Issues

  1. 1 Whether the Universal Service Obligation under Section 43 of the Electricity Act, 2003 is linked to premises or to the consumer
  2. 2 Whether a connection sought by an auction-purchaser is a reconnection or a fresh connection
  3. 3 Whether recovery of arrears of a previous owner from a subsequent (auction) purchaser falls within the regulatory regime of the Electricity Act, 2003

Ratio Decidendi

The Court held that (i) the duty to supply under Section 43 is not absolute and is subject to payment of price, charges and other regulatory compliances; (ii) supply is to the consumer (person) and the consumer becomes liable for charges with respect to the particular premises for which supply is sought; (iii) State Commissions and Electricity Boards possess authority under Sections 50 and 181 (and s.49 under the 1948 Act) to frame Supply Codes/conditions which can validly require payment of arrears of previous consumers by subsequent owners as a precondition for grant of supply, and such subordinate legislation can create a statutory charge or recovery mechanism where within the...