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Judgment
The plaintiffs 2 to 4 who are unsuccessful before the two courts below are the appellants in this second appeal. At the time of admission, the
following substantial question of law were framed:-
Whether the lower appellate court was right in thinking that the vesting under the Tamil Nadu Electric Supply under taking acquisition Act 29 of
1954 would give a fresh starting point for limitation?
Whether electricity supply can be disconnected even though the arrears are not with regard to the particular sought to be disconnected?
Whether the right of disconnection for non-payment of arrears can be exercised in respect of time barred arrears also?
Admittedly the plaintiffs owned a factory at Kumbakonam as well as a house and they had secured electricity connection for the Kumbakonam
Electric Supply Corporation, which was an electricity undertaking and the said undertaking was acquired by the state of Tamil Nadu and
transferred to Tamil Nadu Electricity Board. The acquisition was under the Tamil Nadu Electricity Board. The acquisition was under the Tamil
Nadu Electricity Supply (Acquisition of Undertakings) Act, 1954. After the completion of acquisition and vesting, the electricity board served
notice on the plaintiffs calling upon them to pay the arrears of consumption charges in respect of plaintiff''s factory service connection No.38/41.
As the charges were not paid, despite the demands under Exs. A-l and A-2, the defendants threatened to disconnect the house service connection
No.14 of 1991 which belonged to the plaintiffs. At that stage the suit had been instituted. Various pleas were put forward by the plaintiffs. The trial
court dismissed the suit. On appeal, the appellate court confirmed the judgment of the trial court. The two courts below held that arrears of
consumption charges, even if they are barred by limitation, then defendants could recover by exercising the powers disconnection in respect of
other service connection belonging to the same consumer. It was further held by the two courts below that the plaintiffs have not established the
transfer of factory service connection to a third party as according to the books of account, the service connection remained right through in the
name of the plaintiffs and no transfer had been effected at all material time as pleaded by the plaintiffs.
Mr. Chandrasekaran, learned counsel appearing for the appellants contented that the consumption charges demanded is barred by limitation and
even as one date of Exs. A-l and A-2 and as such the defendants- Electricity Board cannot seek to recover barred arrears by disconnecting the
supply of some other service connection, though it stands in the name of the plaintiffs. This question is no longer res integers. It has already been
decided by the Apex Court. In M/s. Swastic Industries Vs. Maharshtra State Electricity Board, , the Apex Court held as follows:-
It would, thus, be clear that the right to recover the charges is one part of it and right to discontinue supply of electrical energy to the consumer
who neglects to pay charges is another part of it The right to file a suit is a matter of option given to the licensee, the Electricity Board. Therefore,
the mere fact that there is a right given to the Board to file the suit and the limitation has been prescribed to file the suit, it does not take away the
right conferred on the Board u/s 24 to make demand for payment of the charges and on neglecting to pay the same. They have the power to
discontinue the supply or cut-off the supply, as the case may be, when the consumer neglects to pay the charges.
This Court in Asmath Begum Vs. The Superintending Engineer, Tamil Nadu Electricity Board and Others, held that the bar of limitation
prescribed in the Limitation Act will not deter the Electricity Board from exercising its power of disconnection under sections 20 of the Act an the
Board could disconnect the very connection of the consumer or any other services connection of the same consumer. Hence, the contention raised
by the learned counsel appearing for the appellants deserves to be rejected.
Mr. Chandrasekaran, learned counsel appearing for the Appellants further contented that in respect of ''A'' services connection of a consumer,
the defendant-board cannot ask disconnect ''B1 service connection of the same consumer. This contention also cannot be sustained as the vary
terms and conditions of supply framed by Tamil Nadu Electricity Board as agreed by the appellants provides for such disconnection. Condition
No.40 (C), enables the respondents to disconnect the supply to any other service connection of the same consumer, in case of default by the
consumer. Hence, the second contention raised by the learned counsel for the appellants also fails.
Learned Counsel appearing for the appellants further contented that the arrears, if any is payable to Kumbakonam Electric Supply under taking
and not to the Tamil Nadu Electricity Board and therefore, the defendants that is, Tamil Nadu Electricity Board cannot seek to recover the arrears
by invoking powers of disconnection. It is to be pointed out that the Kumbakonam Electric Supply undertaking was acquired by the State
Government and vested with the State Government with all rights, privileges and obligations as provided under the Tamil Nadu Electricity Supply
(Acquisition of undertakings) Act, 1954. On a consideration of the statutory provisions, it follows automatically that all the arrears due to the
Kumbakonam Electric Supply Corporation-undertaking could very well be recovered by the State Government. So also the state Electricity
Board, to whom the right has been transferred in terms of the provisions of the said Act and notification issued thereafter. The third contention
raised by the learned counsel appearing for the appellants also fails.
In the foregoing circumstances, the second appeal fails and the questions of law framed in this second appeal are answered against the
appellants. The second appeal is dismissed with costs. Consequently, CMP. No.5174 of 1998 is also dismissed.