M/S Chemenz Labs Limited vs The State Of Madhya Pradesh
2023 Latest Caselaw 2047 MP

                                                         1
                          IN    THE      HIGH COURT OF MADHYA PRADESH
                                              AT JABALPUR
                                                    BEFORE
                                      HON'BLE SHRI JUSTICE VISHAL DHAGAT
                                           ON THE 6 th OF FEBRUARY, 2023
                                          WRIT PETITION No. 11023 of 2007

                         BETWEEN:-
                         M/S CHEMENZ LABS (INDIA) LIMITED, A COMPANY
                         INCORPORATED UNDER THE PROVISIONS OF THE
                         INDIAN COMPANIES ACT, 1956 SITUATED AT PLOT
                         NO.17, SECTOR-C, INDUSTRIAL AREA, MANDIDEEP,
                         DISTRICT RAISEN, (M.P.) THROUGH ITS MANAGING
                         DIRECTOR, SHRI SHARAD SONI, S/O DR. S.C. SONI,
                         AGED ABOUT 40 YEARS, R/O 4 SONI HOMES, LAKHERA
                         PURA, BHOPAL (MADHYA PRADESH)

                                                                                   .....PETITIONER
                         (BY SHRI PRAVEEN CHATURVEDI - ADVOCATE)

                         AND
                         1.    THE STATE OF MADHYA PRADESH THROUGH ITS
                               PRINCIPAL SECRETARY, ENERGY DEPARTMENT,
                               GOVT.   OF    M.P.,   VALLABH   BHAWAN,
                               MANTRALAYA, BHOPAL (MADHYA PRADESH)

                         2.    THE CHAIRMAN CUM MANAGING DIRECTOR,
                               M.P. MADHYA KSHETRA VIDYUT VITRAN COM.
                               LTD. GOVINDPURA, BHOPAL (MADHYA PRADESH)

                         3.    ADDITIONAL    TEHSILDAR    &   ASSISTANT
                               ENGINEER,   MADHYA    PRADESH   MADHYA
                               KSHETRA VIDYUT VITARAN COMPANY LTD.,
                               OFFICE OF SUPERINTENDING ENGINEER [O & M]
                               CIRCLE, BHOPAL (MADHYA PRADESH)

                                                                                .....RESPONDENTS
                         (BY SHRI YASH SONI - GOVERNMENT ADVOCATE FOR RESPONDENT
                         NO.1 AND SHRI K.K. GAUTAM - ADVOCATE AND SHRI R.M. SHARMA -
                         ADVOCATE FOR RESPONDENT NO.2 AND 3.)

                               Th is petition coming on for hearing this day, th e court passed the
                         following:
Signature Not Verified
Signed by: SUNIL KUMAR
PATEL
Signing time: 2/8/2023
5:42:31 PM
                                                             2
                                                             ORDER

Petitioner has filed this petition under Article 226 of the Constitution of India making following prayer:-

7. The petitioner humbly prays that this Hon'ble Court may be pleased to issue a writ in the nature of:

a) Certiorari, quashing the auction notice dated 22.07.2007, Annexure-P/8, published in Dainik Bhaskar, Bhopal;

b) Mandamus, directing the respondents to immediately restore the electricity connection in respect of the petitioner company;

c) Mandamus directing the respondents to refund the balance amount after adjusting Rs.1,55,000/- as demanded by them vide Annexure-P/8 from the petitioner as the petitioner has already deposited under protest Rs.1,72,000/- in relation to the outstanding electricity charges of M/s. Aries Foods Products (P) Ltd.

d) It be declared that the action of the respondents is illegal and arbitrary;

e) Any other order or orders that this Hon'ble Court deems fit and proper in the circumstances of the case may also be kindly granted.

2. Counsel appearing for petitioner relied on judgment passed by this Court in case of M/s. Vee Enn Enterprises and another Vs. State of M.P. and others (Writ Petition No.2799/2001). Said writ petition was disposed off with direction that electricity company cannot enforce contractual liability from third party. Payment of electricity dues is to be paid by consumer on basis of contract between company and consumer. Third party cannot be held liable for it. Counsel for petitioner submitted that petitioner has purchased the said property in auction by Madhya Pradesh Financial Corporation. Since petitioner is purchaser and third party, therefore, liability of erstwhile owner of company Signature Not Verified Signed by: SUNIL KUMAR PATEL Signing time: 2/8/2023 5:42:31 PM

cannot be fastened on petitioner.

3. A notice was issued to petitioner company by additional demand notice dated 23.06.2001 by Additional Executive Engineer (Works/Revenue), M.P.E.B., Mandideep. It was stated that in premises earlier, company in name of M/s. Aries Foods Products was having electricity connection. Said company is in due of Rs.6,27,946/-. Petitioner was requested to get the said payment made to company and only thereafter his prayer for giving connection will be considered.

4. Counsel for petitioner pointed to amended lease deed dated 28.03.2001. Said lease was executed between Managing Director, M.P.A.K.V.N., Bhopal. Earlier lease deed was in favour of M/s. Aries Foods Pvt. Ltd. Said lease deed was amended and lease was extended in favour of M/s. Rajshree Chemenz Labs (India) Limited-petitioner.

5. On going through lease deed, it is clear that from 28.03.2001 premises has been leased in favour of M/s. Rajshree Chemenz Pvt. Ltd. There is no contract between erstwhile company and petitioner for payment of electricity dues and there was no subsisting contract between petitioner and electricity company at that time.

6. In view of same and considering the orders passed by this Court in W.P. No.2799/2001 , writ petition is allowed. Interim order dated 20.08.2007

is made absolute on condition that there are no dues of electricity bill on petitioner's company on basis of subsisting contract with respondent No.2.

7. Demand notice dated 22.07.2007 is quashed.

8. Certified copy as per rules.

Signature Not Verified Signed by: SUNIL KUMAR PATEL Signing time: 2/8/2023 5:42:31 PM

(VISHAL DHAGAT) JUDGE sp/-

Signature Not Verified Signed by: SUNIL KUMAR PATEL Signing time: 2/8/2023 5:42:31 PM