DAKSHIN HARYANA BIJLI VITRAN NIGAM LTD. vs M/S. PARAMOUNT POLYMERS PVT.LTD.

The Supreme Court held that the circular dated 27.11.2001, which mandated that a new consumer must clear the outstanding dues of the previous consumer before receiving a fresh electricity connection, is valid under Section 49 of the Electricity (Supply) Act, 1948. The Court emphasized that the condition imposed by the appellant company is a reasonable restriction aimed at protecting its financial interests. The Court dismissed the writ petition filed by the first respondent, affirming the appellant's right to enforce the payment of dues before granting a new connection.