Director liability for electricity dues challenged over whether supply code can permit recovery from company directors.

Recovery of electricity dues against a company director was questioned on the footing that the supply agreement consumer was the company, not the director personally. The challenge also raised whether Clause 4.3(f)(v) of the Electricity Supply Code, 2005, which permits recovery from directors where the consumer is a company, is consistent with the Electricity Act, 2003 and the statutory definition of "consumer" under Section 2(15). Notice was issued and the matter was listed for further hearing; pending consideration, recovery against the petitioner-director was stayed, while enforcement against the company was left open in accordance with law.

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Issues: Whether recovery of electricity dues could be enforced against a director of the defaulting company, and whether Clause 4.3(f)(v) of the Electricity Supply Code, 2005, enabling recovery from directors where the consumer is a company, was open to challenge as being ultra vires the Electricity Act, 2003.

Analysis: The consumer under the supply agreement was the company, not the petitioner in his personal capacity. The challenge raised a substantial question on the scope of the defined expression "consumer" under Section 2(15) of the Electricity Act, 2003 and the validity of the subordinate provision permitting recovery against directors of a company.

Outcome: Notice was issued and the matter was directed to be listed after counter affidavit. Pending further consideration, recovery was stayed against the petitioner, while enforcement against the company was left open in accordance with law.

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