IN THE HIGH COURT OF JUDICATURE AT PATNA
Letters Patent Appeal No.1196 of 2019
In
Civil Writ Jurisdiction Case No.4141 of 2019
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1. M/s Jalan Polytubes Private Limited a Company incorporated under the
provisions of the Companies Act, 1956, having its registered office at Modi
Bhawan, Ghagha Gali Chouk, Patna City, through its Director, Krishna
Kumar verma aged about 68 years (Male) son of Moti Lal Verma, resident of
Sari Vasiawab Gali, Pani Tanki Rani Milki Chak, Patna City P.S.
Khajekalan, District-Patna-800008.
2. Krishna Kumar Verma Son of Moti Lal Verma resident of Sari Vasiawab
Fali, Pani tanki, Rani Milki Chak, Patna City P.S. Khajekalan, District
Patna-800008.
... ... Appellant/s
Versus
1. The South Bihar Power Distribution Company Limited Vidyut Bhawan,
Bailey Road, Patna, through its Managing Director.
2. The Electrical Executive Engineer, Electric Supply Division, Patna. City,
Patna.
3. The Assistant Electrical Engineer, Electric Supply Sub-Divisional, Katra,
Patna City, Patna.
4. The Junior Electrical Engineer, Electric Supply Section, Malsalami, Patna
City, Patna.
5. M/s Saket PVC Pipes Industries Private Limited, a Company incorporated
Under the Provisions of the Companies Act, 1956, having its Registered
Office at Surya Vihar, Exhibition Road, P.S. Gandhi Maidan, Patna, through
its Director, Vikas Kumar Jalan, Son of Late Narayan Prasad Jalan ,
Resident of 811, Shanti Vihar Apartment, Off Fraser Road, P.O. G.P.O., P.S.
Kotwali, Patna-800001.
... ... Respondent/s
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Appearance :
For the Appellant/s : Mr. Suraj Samdarshi, Advocate
For the Respondent/s : Mr. Prakash Kumar, Advocate
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CORAM: HONOURABLE THE CHIEF JUSTICE
and
HONOURABLE MR. JUSTICE RAJIV ROY
ORAL JUDGMENT
(Per: HONOURABLE MR. JUSTICE RAJIV ROY)
Date : 22-01-2024
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The present appeal is directed against the order
dated 16.08.2019 passed by the learned Single Judge in CWJC
No. 4141 of 2019 by which the relief sought for by the writ
petitioners was rejected holding that the petitioner no. 1, the
company having gone beyond the rights conferred upon it as a
lessee, allowed family of Narayan Prasad Jalan to enter into
the lease premises, obtain electricity to run the family
business and then after accumulating the energy bills, when
the electricity has been disconnected, fresh application for
electricity connection has been made showing it to be a
separate entity, which the Court is not ready to accept.
2. The facts relating to the present appeal is/are as
follows:
3. The appellant no. 1 is a Private Limited Company
registered under the Companies Act, 1956 and was earlier
contesting the matter through one Sachin Modi, the petitioner
no. 2 in the writ petition. He has now been replaced by
Krishna Kumar Verma as appellant no. 2 in the present appeal.
4. On 26.03.2018, Sachin Modi submitted an
application with the respondent South Bihar Power
Distribution Company Limited (henceforth for short, ‘the
SBPDCL’) for grant of electric connection under non-
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domestic category.
5. The respondents in turn informed on 09.04.2018
that in view of outstanding dues of Rs. 20,40,464/- in the
name of Narayan Prasad Jalan, fresh electric connection
cannot be granted to the said premises.
6. The case of the appellants-petitioners is/are that
the said Narayan Prasad Jalan was also the Proprietor of M/s
Saket PVC Pipes Industries Private Limited (henceforth for
short, ‘Saket Industries’) and is now no more. There was a
certificate proceeding against Narayan Prasad Jalan for
recovery of Rs. 20,14,213/- vide certificate case no. 05/2015-
16 but as the same was filed after his death, the certificate
case was quashed by the Patna High Court in CWJC no.
17455 of 2015 vide an order dated 01.10.2018.
7. Further, the land on which the electricity
connection was granted to ‘the Saket Industries’ was leased
out by Sri Krishna Goshala Prabandhak Committee to
Narayan Prasad Jalan, the Director of M/s Jalan Polytubes
Private Ltd. (henceforth for short, ‘Jalan Polytubes’) vide
lease deed dated 30.01.1999 for a period of thirty years from
01.04.1998 to 31.03.2028.
8. Sachin Modi who was petitioner no. 2 in the writ
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petition made a claim that subsequently, there had been
change of hands with the new set of Directors and as such
they were legally entitled to the electric connection and only
because late Narayan Prasad Jalan was also the Director of
Jalan Polytubes beside being the Director of ‘the Saket
Industries’, the electricity connection cannot be denied.
9. In support of the case, learned counsel for the
petitioner, Mr. Suraj Samdarshi referred to the Gazette
notification dated 18.05.2015 of Bihar Electricity Regulatory
Commission, Patna in which Clause 2 sub-Clause (i) read as
follows:
Amendment in Chapter 4 of the code
Third Proviso of clause 4.1 shall be substituted by
the following:-
“(i) If there are arrears of electricity
dues against the owner or occupier or tenant of a
premises as a consumer, new connection shall not
be denied to subsequent owner, occupier or
tenant, and the arrear of electricity dues on the
premises shall be recovered from the defaulting
consumer under the provisions of Bihar and
Orissa Public Demands Recovery Act, 1914 or
alternately the arrears may also be transferred to
another running accounts of the defaulting
consumer after adjustment of amount of security
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deposit and interest there on and giving fifteen
days notice.
10. This Court has also taken note of sub-Clause (iii)
of Clause 2 which read as follows:
(iii) If there are arrears of electricity
dues on a premises, a new connection may be
refused to a new applicant on the same premises if
the applicant being an individual is an associate
or relative as defined in Section 2 and 6
respectively of the Companies Act, 1956 of the
defaulting consumer, or where the applicant being
a company or body corporate or association, or
body of individuals, whether in corporate or not,
or artificial judicial person, is controlled, or
having controlling interest in the defaulting
customer. Provided the Licensee shall not refuse
electric connection on this ground, unless an
opportunity to present his case is provided to the
applicant and reasoned order is passed by an
officer designated by the licensee for this purpose
and the order of refusal shall be communicated
within one month of receipt of the application.”
11. The further case of the appellants-petitioners is
that the respondents were unjustified in not providing the
fresh electricity connection to the M/s. Jalan Polytubes
Private Limited and as such the relief be extended to them and
as the learned Single Judge erred in dismissing the writ
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petition, the same be set aside.
12. Learned counsel appearing on behalf of the
respondents, on the other hand, submits that the lease deed
dated 30.01.1999 is very clear. It has been executed between
Sri Krishna Goshala Prabandhak Committee and M/s. Jalan
Polytubes Private Limited through its sole Director, Narayan
Prasad Jalan for a period of thirty years. He further submits
that Narayan Prasad Jalan was also the Proprietor of ‘Saket
Industries’ and had taken an electricity connection on which
electricity dues of around twenty lakhs was not cleared. The
application for fresh connection was made only to put ‘the
SBPDCL’ to a loss as aforesaid.
13. His submission is that when Narayan Prasad
Jalan entered into the premises on the basis of said lease
agreement with Sri Krishna Goshala Prabandhak Committee
claiming himself as the Director of M/s. Jalan Polytubes
Private Limited, the electricity dues on him has to be cleared
by the subsequent Directors.
14. Learned counsel took this Court to the order
dated 30.07.2018 passed by the Consumer Grievance
Redressal Forum, SBPDCL, Vidyut Bhawan, Patna on a
petition preferred by Sachin Modi who was petitioner in writ
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petition. The Redressal Forum in its order recorded as follows:
“We are of considered view that
everything has been done in a planned manner
only to avoid legitimate charges of electricity viz.
execution of agreement by M/s Jalan Polytubes
Pvt. Ltd. through its director Sri N.P.Jalan from
1.4.1998 to 31.3.2028, taking connection in the
name of M/s Saket Tubes Ltd. through its
proprietor Sri N.P.Jalan, leaving huge amount of
arrears of electricity and now application for new
connection in the name of M/s Jalan Polytubes
Pvt. Ltd. with a new set of directors in the same
premises and on the same agreement and all the
three parties are connived with each other. We
also sense connivance of opposite parties in the
whole episode otherwise connection could not
have been released to M/s Saket Tubes Ltd. on the
agreement of M/s Jalan Polytubes Pvt. Ltd. and
the electricity arrears could not have piled up to
Rupees 25 lacs and odd. Managing Director of
South Bihar Power Distribution Company Ltd,
may get the matter enquired and punish the
defaulter employees. In view of the discussions
made above we find and held that this premises is
under the control of M/s Jalan Polytubes Pvt. Ltd
since 1998 and the electric connection was given
to M/s Saket Tubes Ltd, on the consent of M/s
Jalan Polytubes Pvt. Ltd. and the outstanding
arrears on the premises is payable by M/s Jalan
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Polytubes Pvt. Ltd. deafaults in payment. We are
of view that the petitioner company with new set
of directors cannot be treated as successor
occupier/tenant of the premises as the agreement
is still alive in the name of M/s Jalan Polytubes
Pvt. Ltd. through its director Sri N.P.Jalan & its
heirs since 1.4.1998 and are not eligible for new
electric connection till the arrears on the premises
are recovered fully. We also held that the
undertaking submitted by Sri Sachin Modi on
20/6/2018 is vague and not acceptable as he has
undertaken for payment of the certificate amount
if it is found recoverable from Sachin Modi in
capacity of his being a director of M/s Jalan
Polytubes Pvt. Ltd. As such, we approve the action
of opposite parties not to release the electric
connection to the petitioner company.
Under the observations made above this
petition is dismissed.”
15. It is his submission that the appellants with
ulterior motive chose to take connection in the name of ‘Saket
Industries’ earlier for the same premises and now want
another connection which cannot be allowed and the appeal be
dismissed.
16. From the facts on record and the submissions
put forward by the parties, it is clear that:
(i) Sri Krishna Goshala Prabandhak Committee
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leased out the premises to late Narayan Prasad Jalan, the sole
Director of the M/s. Jalan Polytubes Private Limited;
(ii) this was signed in the year 1999 for a period of
thirty years i.e. from 01.04.1998 to 31.03.2028;
(iii) interestingly, though the agreement was signed
with M/s. Jalan Polytubes Private Limited, the electricity
connection was taken in the name of M/s Saket PVC Pipes
Industries Private Limited in the same premises;
(iv) how and under what circumstance, M/s Saket
PVC Pipes Industries Private Limited which was also headed
by late Narayan Prasad Jalan as its Director came into the
premises and got the electricity connection has not been
clarified by the learned counsel for the appellant despite our
repeated query.
17. It is surprising that though an agreement came
to be signed in the year 1999 between Sri Krishna Goshala
Prabandhak Committee and late Narayan Prasad Jalan
effective 01.04.1998, M/s. Jalan Polytubes Private Limited
submitted an application for electricity connection only in the
year 2018 i.e. after lapse of almost twenty years. This Court is
unable to understand the same unless we connect the link that
in between, under the name of M/s Saket PVC Pipes
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Industries Private Limited, they took electricity connection
and carried on their business. Once the dues went upto
around rupees twenty lakhs and electricity was disconnected,
after the death of Narayan Prasad Jalan, they came up with
this fresh electricity connection theory for M/s Jalan
Polytubes.
18. We cannot further ignore the fact that earlier in
the writ petition, Sachin Modi was fighting for the cause of
M/s. Jalan Polytubes Private Limited but after the learned
Single Judge dismissed the writ petition, now another person,
Krishna Kumar Verma claiming himself to be Director has
stepped in by filing the present appeal.
19. Learned counsel appearing on behalf of the
appellant failed to clarify and/or provide any document as to
how M/s Saket PVC Pipes Industries Private Limited came
into the premises when it was handed over to M/s. Jalan
Polytubes Private Limited by Sri Krishna Goshala Prabandhak
Committee. We have already incorporated sub-Clause (iii) of
Clause 2 of the Gazette notification dated 18.05.2015 which
permits the respondents to refuse new connection to an
applicant on the same premises on the grounds mentioned
therein.
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20. The learned Counsel for the petitioners argued
that M/s Saket Industries was inducted into the premises,
validly, as is permitted by the lease agreement. The specific
term pointed out by the learned Counsel from the lease
agreement requires a sub-lease to be approved by the lessor;
which approval, it is admitted, does not exist. This further
fortifies the finding of a deliberate fraud having been
employed to escape from the liability to pay electric charges.
21. This Court however is surprised to note that the
respondents allowed ‘the Saket Industries’ to run the business
and the electricity bill went upto around twenty lakhs without
the same being disconnected. They as such are duty bound to
look into this aspect and plug the holes.
22. In the aforesaid background, we are in complete
agreement with the observation made by the learned Single
Judge that the CGRF rightly appreciated the facts and
circumstances of the case and affirmed the decision of the
respondent company not to release the electricity in favour of
the appellants-petitioners.
23. This game of hoodwinking the respondents by
changing the nomenclature of the firm in the same leased
premises and in the process putting the respondents to loss of
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more than 20 lakhs cannot be given a stamp of the Court.
24. We do not find any reason to interfere with the
order dated 16.08.2019 passed by the learned Single Judge in
CWJC No. 4141 of 2019.
25. The LPA No. 1196 of 2019 is dismissed.
(K. Vinod Chandran, CJ)
( Rajiv Roy, J)
kiran/-
AFR/NAFR AFR
CAV DATE
Uploading Date 29.01.2024
Transmission Date
