Conditional stay for electricity arrears required continued deposits and current charge payments; unconditional interim relief was set aside.

Interim protection against recovery of electricity arrears was held unsustainable when it operated unconditionally while a challenge to Clause 21-A remained pending. The Court relied on its earlier interpretation of the clause and, noting that part of the arrears had already been deposited, held that continued supply could be protected only on a further deposit schedule and timely payment of current charges. It directed that default would automatically vacate the stay and permit disconnection of supply. The merits of the writ challenge were not decided.

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Issues: Whether the High Court was justified in granting an unconditional stay of the demand for electricity arrears and in directing restoration of electricity supply, and whether such stay ought to continue only on condition of deposit of part of the arrears and current charges.

Analysis: The writ petition challenging the validity of Clause 21-A of the Terms and Conditions of Supply was still pending, so no opinion on the merits of that challenge was expressed. The Court nevertheless found the impugned interim order unsustainable. Relying on the earlier interpretation of Clause 21-A in similar circumstances, and noting that part of the arrears had already been deposited, the Court held that continued protection could be granted only on compliance with a further deposit schedule. The Court also directed payment of current electricity charges within the period allowed by law, with liberty to disconnect supply on default.

Conclusion: The unconditional stay was set aside and replaced by a conditional stay requiring deposit of the further amount in instalments, failing which the stay would automatically stand vacated and the supply could be disconnected.

Final Conclusion: Interim relief was modified so that continuation of electricity supply depended upon timely deposit of the specified arrears and regular payment of current charges.

Ratio Decidendi: Interim protection against recovery of electricity dues may be continued only on terms that secure payment of the arrears and current charges, and an unconditional stay is unsustainable where such dues are lawfully recoverable.

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