Corona Cosmetics and Chemicals Ltd. vs District Magistrate and Others

Palok Basu, J.—M/s. Corona Cosmetics & Chemicals Limited have filed this writ petition seeking the relief that the seizure made on 18.12.1995 be lifted at once, the Respondents be commanded not to proceed against the Petitioner for recovery of electricity dues of the earstwhile consumer M/s. Chitrakoot Roller & Hour Mills Pvt. Limited and further that the U.P. State Electricity Board may be commanded to give electric connection to the Petitioner as fresh consumer.

When the writ petition was filed on 3.1.1996, a detailed interim order was passed. Counter-affidavits were called from the U.P. F. C. as well as the U.P. State Electricity Board, while a counter-affidavit has been filed by Shri Chandra Prakash appearing on behalf of U.P. F. C, no counter-affidavit has been filed by the U.P. State Electricity Board which is represented by Shri Sudhir Agarwal. To be fair to Shri Agarwal, it may be stated that he has also agreed for disposal of the writ petition at this stage without a counter-affidavit from the Board because the facts which exist in the writ petition concerning the purchase of the unit by the Petitioner u/s 29 of the U.P. State Financial Corporation Act stands admitted.

Short facts are that the Petitioner has purchased the Factory known as M/s. Chitrakoot Roller & Flour Mills Pvt. Ltd. from U.P. F. C. u/s 29 of the State Financial Corporation Act, 1951. The erstwhile owner, i.e., M/s. Chitrakoot Roller & Flour Mills Pvt. Ltd. had liability not only towards U.P. F. C. but towards U.P. State Electricity Board also. Shri Agarwal stated that the Board had already initiated proceedings for realising outstanding arrears.

Shri U. N. Sharma, learned Counsel for the Petitioner said that electricity charges which stood payable by the erstwhile owner could not have been passed on to the new purchaser u/s 29 of the S. F.C. Act because no such liability can be fastened u/s 29 upon the new purchaser. Reliance has been placed on the decision of the Hon''ble Supreme Court reported in Isha Marbles Vs. Bihar State Electricity Board and Another, .

In view of the aforesaid legal position, it cannot be doubted that if there was any outstanding bill against M/s. Chitrakoot Roller & Flour Mills Pvt. Limited, the Petitioner M/s. Corona Cosmetics & Chemicals Limited cannot be fastened against those bills and no recovery can be made from the Petitioner regarding those old bills of the erstwhile owner. Consequently, the recovery proceedings if initiated and the seizure of the Unit if made only to recover those arrears from the Petitioner which were to be recovered by the State Electricity Board, have to be declared illegal and quashed.

In this connection, Shri Agarwal stated that the U.P. State Electricity Board has, therefore, not issued any bill or recovery proceedings in the name of the Petitioner M/s. Corona Cosmetics & Chemicals Ltd., Kanpur Dehat. He stated that the recovery proceedings were initiated on the strength of the bills issued in the name of M/s. Chitrakoot Roller & Flour Mills Pvt. Ltd. which remain unpaid. This being the admitted position, the Petitioner cannot be held liable to pay any money in the recovery proceedings against M/s. Chitrakoot Roller & Flour Mills Pvt. Ltd. Consequently, the seizure of the Unit after it has been owned by the Petitioner must be quashed.

The question which remains for decision is whether the Petitioner can be considered as a new consumer applying for new power connection in place of the aforesaid erstwhile owner? This question also need not be decided for the reason that admittedly the Petitioner is prepared to pay all the charges concerning the new connection as a new consumer. If this is so, the State Electricity Board shall decide the Petitioner''s application as and when the Petitioner''s turn comes in the serial of new-consumer-applicants. It was contended by Shri U. N. Sharma that since there is no other applicant in the area in which the Petitioner''s unit falls, the Petitioner''s application alone stands at the first serial. If this is so, the argument appears to be correct that the State Electricity Board shall not have to delay the consideration of the Petitioner''s application for new power connection as a new consumer.

In view of the aforesaid discussions, the writ petition is allowed with the following directions. The recovery proceedings only as against the Petitioner M/s. Corona Cosmetics & Chemicals Ltd., Kanpur Dehat is quashed. The seizure of the unit made is also quashed. The U.P. State Electricity Board is restrained from realising the said arrears which stood in the name of M/s. Chitrakoot Roller & Flour Mills Pvt. Ltd., from the Petitioners.

The U.P. State Electricity Board is further directed to deal with the application of the Petitioner for grant of new power connection in accordance with law. All other applications moved in this writ petition stand finally disposed of in view of this judgment. Parties will bear their own costs.