Case Note & Summary
The dispute pertains to the legality of single point electricity supply to a condominium complex known as Great Eastern Plaza in Pune. The petitioner, Maharashtra State Electricity Distribution Company Limited (MSEDCL), challenged the order dated 31.01.2018 passed by the Chief Electrical Inspector and appellate authority under Section 127 of the Electricity Act, 2003, which allowed the appeal of respondent no.1, Mahindra Life Space Developers Limited (formerly GESCO). The respondent no.1, a real estate developer, had initially sought multiple LT connections for the commercial complex but later obtained a single HT connection for the entire building. After selling units to various purchasers, who formed a condominium (respondent no.2), the developer continued to distribute electricity to individual occupants through sub-meters. MSEDCL contended that the developer was engaged in unauthorized resale of electricity without a license and that the single point supply arrangement violated regulations and MERC tariff orders which mandated either individual connections or a franchisee model for group housing societies. The respondent argued that the condominium was entitled to be treated as a consumer and that the arrangement was permitted under the law. The appellate authority ruled in favour of the respondents, allowing single point supply. MSEDCL then filed the writ petition under Article 227 of the Constitution, seeking to set aside that order. The High Court heard the petition and reserved judgment on 21.06.2018, pronouncing it on 07.08.2018. The full decision and reasoning of the court are not provided in the excerpt, and thus the outcome of the writ petition remains unstated.
Issue of Consideration
Whether the appellate authority under Section 127 of the Electricity Act, 2003 was justified in holding that the condominium could be treated as a consumer entitled to single point supply, and whether such single point supply arrangement was in conformity with the provisions of the Electricity Act and orders of MERC.
Law Points
- single point electricity supply to condominium
- consumer definition under Electricity Act 2003
- appellate authority under section 127
- MERC tariff orders on single point supply
- HT connection for bulk supply
- sub-metering by developer
- franchisee model for distribution
- distinction between LT and HT consumer categories
- condominium as deemed consumer
- requirement of separate connections or franchisee route as per MERC order
Case Details
2018 LawText (BOM) (08) 118
WRIT PETITION NO. 5487 OF 2018
Ms.Deepa Chawan, Mr.Ravindra Chile, Ms.Radha Bhandari, Ms.Khushboo Agrawal (for Petitioner); Dr.Milind Sathe, Senior Advocate, Mr.S.Sen, Mr.Gaurav Srivastav, Mr.Anant S.Tripathi (for Respondents)
Maharashtra State Electricity Distribution Company Limited
1) Mahindra Life Space Developers Limited (Formerly known as GESCO Corporation Limited), 2) The Great Eastern Plaza Condominium
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Nature of Litigation
Writ petition under Article 227 of the Constitution of India challenging an appellate order under Section 127 of the Electricity Act, 2003 which allowed a developer to supply electricity to a condominium complex through a single HT connection.
Remedy Sought
The petitioner (distribution licensee) sought to quash the order dated 31.01.2018 of the Chief Electrical Inspector and appellate authority, which had allowed the appeal of respondent no.1, thereby permitting the single point supply arrangement.
Filing Reason
The petitioner contended that the appellate authority's order was erroneous and contrary to the provisions of the Electricity Act and MERC tariff orders, as it permitted unauthorized resale of electricity and a single point supply that violated regulatory requirements mandating individual connections or a franchisee model.
Previous Decisions
Appeal No.183 of 2010 was allowed by the Chief Electrical Inspector on 31.01.2018, holding in favour of respondent no.1 and permitting the single point supply to the condominium.
Issues
Whether the condominium association can be treated as a consumer entitled to a single point supply under the Electricity Act, 2003.
Whether the developer could lawfully distribute electricity to individual unit holders without obtaining a distribution license.
Whether the MERC tariff orders requiring individual connections or franchisee operation apply to the condominium complex.
Judgment Excerpts
By this petition filed under Article 227 of the Constitution of India, the petitioner has impugned the order dated 31st January,2018 passed by the appellate authority and Chief Electricity Inspector under section 127 of the Electricity Act, 2003 allowing the Appeal No.183 of 2010 filed by the respondent no.1.
The respondent no.1 was the original appellant in the said appeal.
It is the case of the petitioner that the respondent no.1 however at no point of time, informed the petitioner about sell of the premises to any person.
It was directed in the said order passed by the MERC that in future, the consumers needing single point supply would have to take individual connections or operate through franchisee route.
Procedural History
In 1998, lease deed executed for sub-station. In 1999, respondent no.1 applied for 51 LT connections; later following discussions, applied for HT connection. HT connection sanctioned and agreements executed in 2000 and 2002. By 2003, commercial complex was built and units sold; condominium formed. Sub-metering was undertaken by developer. Respondent no.1 continued to hold HT connection and supplied to unit holders. In 2006, MERC issued tariff order for MSEDCL requiring single point consumers to take individual connections or franchisee route. Respondent no.2 applied for change of name in 2008. Disputes arose over single point supply; respondent no.1 filed Appeal No.183 of 2010 before Chief Electrical Inspector under Section 127 of Electricity Act challenging MSEDCL's actions. On 31.01.2018, the appellate authority allowed the appeal. MSEDCL filed the present writ petition under Article 227.
Acts & Sections
- Electricity Act, 2003: 127
- Constitution of India: 227
- Companies Act, 1956:
- Maharashtra Apartment Ownership Act, 1970:
- Electricity Regulatory Commission Act, 1998:
