2003 (11) TMI 339

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....r short) as per an order passed to this effect on 20-7-1999 by the Bench-III of the Board for Industrial and Financial Reconstruction in Case No. 96/99 before it. 2. It is the case of the petitioner that pursuant to the order, efforts for reviving the company is on. The petitioner-company is aggrieved by the two demands raised on it as per Annexure-C dated 2-5-2002 in Bo. AEEE-I/AAO/SAI/HT/HBL/2002-03/650 for Rs. 4,13,830 and Annexure-E dated 24-8-2002 in No. DRSD./SA/PI/2077 for Rs. 34,17,627 by the respondent apprising the petitioner as per the communication dated 24-8-2002 (Annexure-E) that on failure of payment within a week therefrom, power supply to the installation will be disconnected. 3. Petitioner, being aggrieved by these d....

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....i S.V. Shastri, learned Counsel appearing for the petitioner has vehemently urged by pointing out to the provisions of section 22 of the Act that the threatened action on the part of the respondents to disconnect the power supply for non-payment of the amounts demanded from the petitioner company is a coercive action and amounts to enforcing a liability on a sick industrial undertaking even during the pendency of the proceedings before the Board, which is not permitted under section 22 of the Act and as such submits that this action is violative of the provisions and requires to be held to be so and the respondent should be restrained from refusing supply of power to the petitioner company. 6. Learned Counsel submits that the word "proce....

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....be given relief. Learned Counsel prays for allowing the writ petition by quashing the impugned demands. 7. Sri N.K. Gupta, learned Counsel appearing for the respondents, on the other hand submitted, that the demand by the respondent-Corporation being a security measure and to cover the price for consumption for about three months by consumers, it has been held by Courts that such a demand is justified, particularly having regard to the fact that a consumer is billed and a demand raised on him and the time permitted for such payment in all, roughly taking about three months for the entire circle to be completed and the Courts have sustained demand for three months by the Board. Learned Counsel has placed reliance on the decision of a Divi....