2012 (3) TMI 720

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....tuated at Haridwar Road, Bijnor. 2. The Company entered into an agreement with the Executive Engineer, Electricity Distribution Division-I Bijnor on 22.2.1990, for supply of 335 KVA electricity load. The agreement was signed by the petitioner as a director of Company. Clause 13 of the agreement provided that any notice by the supplier to the consumer shall be deemed to be duly given and served, if it is addressed to the consumer and delivered by hand at, or sent by registered post to the address specified in the consumer's application or as subsequently notified to the supplier. Clause 14 provides that consumer shall pay in advance an estimated amount to be intimated by the supplier to the cost of providing and installing the line, con....

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....nclude any person whose premises are for the time being connected with the works of the board for the purpose of receiving electrical energy and also includes an intending consumer and a consumer who has been disconnected. 6. Sri Agarwal submits that the demand was raised prior to enforcement of Electricity Act 2003, and the notification of U.P. Electricity Supply Code 2005. The 'consumer' in the present case would be the 'Company' and not the 'Directors of the Company', who are not liable personally for payment of any amount due to the electricity department. He further submits that even under the Electricity Act 2003, the word 'consumer' is defined as a person who has been supplied with electricity for his....

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....sets. 9. Sri Pankaj Kumar Shukla, submits that the petitioner had entered into agreement on behalf of the Company as a Director of Company. He has filed a civil suit and prayed for stay of recovery certificate. An order was passed by the trial court to make the payment in installment. The petitioner, however, failed to deposit the due amount. 10. Sri Shukla further submits that position has now been clarified in clause 4.3 (f) (i) to (vi) of the U.P. Electricity Supply Code 2005. Clause (v) of para 4.3. (f) provides that the director of the company shall be liable for the dues of the company. 11. A Company is an artificial person, and can only contract through agents. The normal mode of signing is to use the words 'on behalf of the C....

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....ub clause (v) provides that recovery proceedings against the defaulting consumer, and where the defaulting consumer is a company, from the Directors of the Company, shall be ensured. 13. In our view, firstly these clauses are not applicable in as much as the U.P. Electric Supply Code 2005, made under Section 50 of the Electricity Act 2003, was notified after the dues were ascertained and recovery citation was issued; and secondly para 4.3 (f) (iv) of the Electricity Supply Code 2005 provides that outstanding dues is the first charge of the company. It is only after the assets of the Company are unable to meet the demand of the department then recovery proceedings may be initiated against the Directors of the Company. Clause (v) of para 4.3....