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Home News Power Sector News Power can be disconnected if unpaid dues exists - Supreme Court

Power can be disconnected if unpaid dues exists - Supreme Court

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Supreme Court judgment on power distribution has put the smiles back on the face of officials in power distribution utilitiesSupreme Court of India on 07-11-2008 ruled that power distribution utilities can retain the right to disconnect supply if outstanding dues are not cleared. There have been instances of consumers filing cases with the Ombudsman for Electricity regarding disconnection due to non-payment of dues after sale/transfer of property. Court ruled that buyer/occupant should ensure there are no dues pending.

The apex court bench of Justices R V Raveendran and L S Panta gave the decision while ruling on a suit filed by a consumer against Paschimanchal Vidyut Vitran Nigam, of Uttar Pradesh. The consumer had moved court contending that the distributor’s refusal to restore connection to buyers of a sub-divided plot was illegal. But ruling in favour of the distributor, the Bench observed, “We do not find anything unreasonable in a provision enabling the distributor/supplier to disconnect supply if dues are not paid.”

Even in cases where the plot has been sold or sub-divided, the Bench held that the provision should be upheld.

A senior Power department official said the decision is expected to reduce cases in which people sell the property when faced with electricity disconnection after drawing up humongous dues. “The onus is now also on buyers to ensure that all dues are cleared before they purchase a property,” the official said.

What apex court says
* Power distributors can snap supply if dues cross a certain limit
* Applicable even to plot/premise that has been sold or sub-divided
* Buyer/occupants should ensure there are no dues pending
Courtsey - Indian Express

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