Calcutta High CourtAdministrative and Public LawCivil Law

Continuous disconnection for 180 days terminates the supply agreement, barring restoration under Regulation 4.6.

SANCHEM PAINTS PRIVATE LIMTIEDv.STATE OF WEST BENGAL AND ORS.

Continuous disconnection for 180 days terminates the supply agreement, barring restoration under Regulation 4.6.. SANCHEM PAINTS PRIVATE LIMTIED vs STATE OF WEST BENGAL AND ORS.. Calcutta High Court. LawLens
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In brief

The question

Whether the petitioner was entitled to restoration of the electricity connection that had been disconnected on 29 February 2016, merely because the registered consumer had subsequently changed its name to Sanchem Paints Private Limited?

The court held

The Court held that the petitioner was not entitled to restoration of the previously disconnected electricity connection, notwithstanding the change of name from Sanchem Plastics Private Limited to Sanchem Paints Private Limited, because the supply agreement stood deemed terminated under Regulation 4.6 after 180 days of disconnection.

It also directed

The writ petition was disposed of without costs.

The petitioner was permitted to apply for a fresh or new connection at the premises, and WBSEDCL was directed to consider and dispose of such application expeditiously and in accordance with Section 43 of the Electricity Act, 2003 and the applicable Regulations.

Any unused security deposit of the erstwhile consumer could be considered for adjustment against the deposit for the new connection, subject to the petitioner’s legal entitlement and WBSEDCL’s right to demand any shortfall.

01Facts

The petitioner alleged that it had enjoyed electricity supply at its business premises since 2001 and that WBSEDCL disconnected the supply in February/March 2016 without notice or lawful basis.

¶ 1–4

It applied for restoration on 20 March 2026, but WBSEDCL did not restore the supply, leading to the writ petition.

¶ 1–4

WBSEDCL contended that the registered consumer was Sanchem Plastics Private Limited, not the petitioner, and that the supply had been disconnected on 29 February 2016 at the registered consumer’s request.

¶ 6

The petitioner asserted that Sanchem Plastics Private Limited had subsequently changed its name to Sanchem Paints Private Limited and that it remained in possession of the premises.

¶ 8–10

Respondent No. 6 disputed the petitioner’s possession and alleged unlawful subletting of the premises.

¶ 7

02Issues

i.Whether the petitioner was entitled to restoration of the electricity connection that had been disconnected on 29 February 2016, merely because the registered consumer had subsequently changed its name to Sanchem Paints Private Limited?

¶ 12–14

ii.Whether the prolonged disconnection resulted in termination of the agreement for supply under Regulation 4.6 of the West Bengal Electricity Regulatory Commission (Electricity Supply Code) Regulations, 2013?

¶ 14–16

iii.Whether the petitioner could seek a fresh or new electricity connection at the same premises, subject to its entitlement under Section 43 of the Electricity Act, 2003?

¶ 17–24

03Law Applied

The Court applied Regulation 4.6 of the West Bengal Electricity Regulatory Commission (Electricity Supply Code) Regulations, 2013, under which an agreement between the licensee and consumer is deemed terminated when electricity supply remains continuously disconnected for 180 days, provided the disconnection was effected in compliance with the Electricity Act or the Regulations.

¶ 14

Regulation 4.4 permits disconnection upon the consumer’s request; consequently, a disconnection made on request is a disconnection effected in accordance with the Regulations and falls within Regulation 4.6.

¶ 16

The Court also applied Section 43 of the Electricity Act, 2003, which governs the licensee’s duty to provide electricity supply to an eligible applicant and requires the applicant’s entitlement to be assessed in accordance with law.

¶ 17–18, 21–22

The Court further recognised that any unused security deposit of the erstwhile consumer could be considered for adjustment against the deposit required for a fresh or new connection, subject to legal entitlement and any balance demanded by WBSEDCL.

¶ 19–20

Provisions in the judgment · 1 · Linked ones open on LawLens

Electricity Act, 2003 Section 43

04Reasoning

Although the Court accepted that the Registrar of Companies’ certificate showed that Sanchem Plastics Private Limited had been renamed Sanchem Paints Private Limited, the change of name did not, by itself, revive the electricity-supply agreement that had ceased to exist after prolonged disconnection.

¶ 13

Since the supply had been disconnected on 29 February 2016 and remained disconnected for substantially more than 180 days, Regulation 4.6 deemed the agreement terminated, assuming the disconnection complied with the statutory or regulatory framework.

¶ 14

The Court rejected the petitioner’s argument that Regulation 4.6 was inapplicable because the disconnection had been made at the consumer’s request.

¶ 16

It held that Regulation 4.4 expressly recognises disconnection on request, making such disconnection compliant with the 2013 Regulations and therefore covered by Regulation 4.6.

¶ 16

Accordingly, restoration of the old connection was legally impermissible.

¶ 16

However, the petitioner was not precluded from applying for a fresh or new connection, which WBSEDCL was required to consider under Section 43 of the 2003 Act and the applicable Regulations, without such supply creating any equity in the petitioner’s separate dispute with Respondent No. 6.

¶ 17–18, 21–24

05Holding

The Court held that the petitioner was not entitled to restoration of the previously disconnected electricity connection, notwithstanding the change of name from Sanchem Plastics Private Limited to Sanchem Paints Private Limited, because the supply agreement stood deemed terminated under Regulation 4.6 after 180 days of disconnection.

¶ 13–16

The writ petition was disposed of without costs.

¶ 17–18, 24–25

The petitioner was permitted to apply for a fresh or new connection at the premises, and WBSEDCL was directed to consider and dispose of such application expeditiously and in accordance with Section 43 of the Electricity Act, 2003 and the applicable Regulations.

¶ 17–18, 24–25

Any unused security deposit of the erstwhile consumer could be considered for adjustment against the deposit for the new connection, subject to the petitioner’s legal entitlement and WBSEDCL’s right to demand any shortfall.

¶ 19–22
Calcutta High Court

Original Court PDF

SANCHEM PAINTS PRIVATE LIMTIEDvsSTATE OF WEST BENGAL AND ORS.

Calcutta High Court · September 01, 2026

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