CASE TITLE: Tehsil Bar Association, Sadar Tehsil Parisar, Gandhi Nagar, Ghaziabad vs. U.P. Power Corporation Limited And 3 Others 2023 LiveLaw (AB) 245 [WRIT – C No. – 2637 of 2023]
DECIDED ON: 03.08.2023
CORAM: Hon’ble Surya Prakash Kesarwani,J. Hon’ble Anish Kumar Gupta,J.
INTRODUCTION
The Allahabad High Court has determined that the actions undertaken by legal professionals do not constitute ‘commercial activities.’ Therefore, the electricity tariffs applicable to commercial establishments cannot be applied to lawyers’ offices when they are utilized for professional engagements.
FACTS
The Sadar Tehsil Bar Association brought a case before the Court challenging the imposition of commercial electricity rates on lawyers’ chambers.
The legal representative for the petitioner asserted that the practice of law does not qualify as a commercial endeavor. Lawyers contribute to society by participating in the administration of justice, reflecting a profession that serves the public good rather than pursuing commercial gains.
Reference was made to previous circulars issued by the U.P. Electricity Regulatory Commission, which classified the judiciary under the LMV-1 category, applicable to residential users. Furthermore, it was argued that lawyers’ chambers in the District Bar Association of Noida were billed under the LMV-1 category. The argument contended that the imposition of varying rates in different regions of the state is arbitrary and discriminatory in nature.
CASE ANALYSIS AND DECISION
The Court’s observation emphasized that when words are used within the same context, they should draw meaning from one another. Since the occupation of lawyers doesn’t fall under the LMV-2 category designated for ‘non-domestic’ activities, for them to be billed under that schedule, an activity of a similar nature must be demonstrated.
Citing the verdict in M.P. Electricity Board and Ors. v. Shiv Narayan Chopra and the Bar Council Rules, the Court based its decision on the understanding that the legal profession lacks a commercial essence, thereby negating the imposition of commercial tariff rates on lawyers.
The Court further pointed out that even though the LMV-2 rates are intended for ‘non-domestic’ users, the stated categories partake in commercial undertakings associated with trade or business. Consequently, these rates cannot be imposed on lawyers’ chambers. The Court maintained that earlier circulars mandating LMV-1 rates for the legal profession and the judiciary will be relevant for lawyers’ chambers situated within court premises.
Addressing the disparity in rates between Gautam Budh Nagar and Ghaziabad, the Court acknowledged that the UP Electricity Regulatory Commission is accountable for tariff rates in Uttar Pradesh. Therefore, it was established that “the respondents are not permitted to differentiate between the electricity supply to advocates’ chambers in different court premises within the same State, especially when the rate schedules are sanctioned by the same governing authority.”
In line with this reasoning, the writ petition was granted approval.
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Written by- Mansi Malpani
