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of <h1>Electricity Supplier Can Demand Arrears Clearance Before New Connection; Refund Conditions Imposed in Dispute Resolution.</h1> <h3>Paschimanchal Vidyut Vitran Nigam Ltd. and Ors. Versus DVS Steels and Alloys Pvt. Ltd. and Ors.</h3> Paschimanchal Vidyut Vitran Nigam Ltd. and Ors. Versus DVS Steels and Alloys Pvt. Ltd. and Ors. - 2009 AIR 647, 2008 (15) SCR 766, 2009 (1) SCC 210, 2008 ... Issues involved:1. Whether the supplier can recover the electricity dues from the purchaser of a sub-divided plotRs.2. Whether the appellant is liable to refund the pro rata payment made by the first respondentRs.Issue 1: Whether the supplier can recover the electricity dues from the purchaser of a sub-divided plotRs.The appellant contended that a transferee seeking electricity connection to a premises must clear the dues of the previous occupant as per the Electricity Supply Code. The distributor-supplier and the premises owner are parties to the contract, and a subsequent occupant without a contract cannot be asked to pay the predecessor's dues. However, the distributor can require arrears clearance before providing electricity, ensuring compliance with statutory rules or self-imposed conditions. The court upheld the distributor's right to demand dues for electricity supplied to a premises before granting a connection to safeguard against defaults and ensure recovery.Issue 2: Whether the appellant is liable to refund the pro rata payment made by the first respondentRs.The Commission directed the appellant not to demand pro rata arrears from plot purchasers if the third respondent provided a bank guarantee for outstanding dues. The first respondent voluntarily paid the pro rata dues before this order. The court ruled that the first respondent, having paid voluntarily, cannot claim a refund unless specified by the Commission. If the third respondent is found not liable or clears the dues, the appellant must refund with interest. The court allowed the appeal, overturning the High Court's order and dismissing the first respondent's writ petition.
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