There are frequent cases where a company goes sick, has some outstanding to govt power supply companies, not because of any power actually supplied but because of their monopolistic condition in agreement to keep demanding minimum charges for 2 years of commencement of power supply.
Normally, action for recovery would lie against company and its property but practically, these monopolistic govt companies use coercive methods to force directors/shareholders to pay up (like disconnecting power supply to their residences despite regular bill payments etc). I do not think there is any law that permits them to do it. They have not produced any such legal authority in favour of such action (pending in high court after interim relief of resuming power supply). Even my application under RTI is being frustrated on one pretext or another.
Even MPERC has not given any info in response to RTI application as to whether there is any legal authority to force directors to pay up company dues and to disconnect their residential electricity supply.
Kindly advise if there is any such law and whether there have been any case laws wheher in favour of such recovery or against such efforts for forceful recovery.
My state is MP.
Thanking you,
