The Madhya Pradesh Government Electrical Undertakings (Dues Recovery) Act 1961

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Sections
For Statements of Objects and Reasons, see Madhya Pradesh Bill No. 28 of 1961.
Published in MP Rajpatra (Asadharan), dated 9th September, 1961, page 1673.
Short title, extent and commencement
Definitions
Bills to state the date by which payments are to be made and consequences of non­
payment
Notice of demand for dues and penally not paid
Suit to challenge liability of payment
Recovery of dues etc., if not I?aid
Power to ma~ rules
i*
Recovery of arrears of dues
Extension of period of limi,tation.
THE MADHYA PRADESH GOVERNMENT ELECTRICAL
UNDERTAKINGS (DUES RECOVERy) ACT,1961'
[No. 36 of 1961]
CONTENTS
l.
2.
3.
4.
5.
6.
7.
8,
9.
614 M.P. Electricity Manual
{Received the assent ofthe Presidelll on the 31st October, 1961,.asselll first published in
the "Madhya Pradesh Gaulle", dated 17th November, 1961].
An Act to extend the period of limitation and to provide for the eXpeditious
recovery of certain sums due to the State Government or to the Madhya
Pradesh Electricity Board
Be it enacted by the Madhya Pradesh Legislature in the Twelfth Year of the Republic
of India as follows :-
1. Shorf tiJle, exient and comniencem~nt.- (1) This Act may be called the Madhya
Pradesh Government Electrical Undertakings (Dues Recovery) Act, 1961.
(2) It extends to the whole of the State of Madhya Pradesh.
(3)}t shall come into force at once.
•2. DerllliJiorls.- In this Act, unless the context otherwise requires-
(aj "Board" means the Madhya Pradesh Electricity Board, constituted under section
5 of the Electricity (Supply) Act, 1948 Central Act No. 54 of 1948;
ib) "dues" means any sum payable to Government electrical undertaking on account
of-
'[(i) Consumption of electrical energy supplied, minimum charges, minimum
guarantee, special minimum g~arantee and surcharge under an agreement or
otherwise]; or
(ii) any remunerati~n, rent or other charges for hire, inspection, test, installation,
connection, repair, maintenance or removal of any electric meter, electric
machinery, control gear, fittings, wires, or apparatus for lighting, heating,
cooling, or motive power or for any other pUTJX>se for which electricity can
or may be used, or any industrial or agricultural machinery operated by
electricity; or
(iii) price of any such goods as aforesaid taken on loan but not returned;
(c) "debtor" means a person by whom any dues are payable;
(d) "Government electrical undertakipg" means an electrical undertaking run or
controlled either by the State Government or by the Board; and
Ie) "prescribed authority" means any person authorised, whether by virtue of office
or otherwise, by the State Government, by notification, to perform the functions
of the prescribed authority under this Act in and for such area, as may be specified
in the notification.
COMMENTS
Meaning words "dues" and Government Electrical undertaking"- The question is
whether the Board C3l' be held to be Government electrical undertaking as defined by section
2(d) of the Act. The 1rgument advanced on behalf of the appellant is two fold, in the first
place it is (Xlntended that the Board is not an undertaking arid secondly it is urged that it is
1. Substituted by M.P. Act No. 31 of 1976. This shall be deemed to have form part oftJie
Principal Act. .
M.P. Govt. Electrical Undertakings (Dues Recovery) Act, 1961 615
not controlled by the State Government. Both the contentions are rejected. When the Board
chosen to supply electrical energy to the consumers, it is acting as an undertaking. The
Board which is a statutory body created by the State Government under section 5 of the
Indian Electricity (Supply):Act, 1948 is controlled by the State Government. If the dues are
payable to the Board by the petitioner are hold to be dues payable to a Government electrical
undertaking then under the provisions of the Act for recovery of the due would be attracted.
Everlasting Rubber Works Co. Ltd. Vs. MP. Etectricity Board. 1980 (II) MPWN 266 at
page 360. -
.3. Bills to state date by which payments are to be made and consequences of non­
payment.- (1) Every bill for dues payable to a Government electrical undertaking by a
debtor shall be in the prescribed form and shall specify conspicously the date by which such
dues are to be paid.
2) If the dues are not paid by such date, the debtor shall be liable to pay in addition
thereto such penalty, as m'ay be prescribed and such dues and penalty shall be recoverable
alongwith the costs incurredin makingsuch recovery,in the mannerhereinafterlaid down
in this Act.
4. Notice of demand for dues and penalty not paid.- Where the dues are not paid by
a debtor by the date specified in the bill therefor, the prescribed authority may at any time
serveor cause to be served ulxJn him a noticeof demand in the prescribedform, statingthe
name of the debtor, the amount payable by him on account of the various dues, penalty and
costs of recovery and the undertaking to which it is payable.
Explanation.- The sending of the notice by registered post shall be deemed to be
sufficientserviceon the person concerned.
5. Suit to challenge liability to payment.- (1) Where a notice of demand has been
servedon the debtoror his authorisedagent undersection4, he may, if he denieshis liability
to pay the dues, penalty or costs or any part of any of them, institute a suit after depositing
with the prescribed authority the aggregate amount specified in the notice of demand under
protest in writing that he is not liable to pay the same within three months of the date of the
serviceof the noticeof demand.
(2) A suit referred to in sub-section (1) may be instituted in a civil court of competent
jurisdiction at any time within six months from the date of deposit with the prescribed authority
and subject to the result of such suit, the notice of demand shall be conclusive proof of the
variousdues, penaltyand costs mentionedtherein.
6. Recovery of dues, etc., if not paid.· (1) If the aggregate amount of the various
dues, penalty and costs mentionedin the noticeof de«1and served under section 4 is not
deposited with the prescribed authority within three months of the date of such service or
such extended period as the prescribed authority may from time to time allow, the debtor
shall be deemed to be in default in respect of such amount and the same shall be recoverable
as an arrearof land revenueanythingcontainedin any otherlaw or instrument,or agreement
to the contrary notwi~standing...
(2) For the purpose of such recovery, the prescribed authority may forward to the
Collector a cert.ificate under his signature in the prescribed form stating the amount and
details of the demand and the name and description of the debtor in default and the Collector
shall in receipt of such certificate, proceed to recover from the debtor the amount of the
616 M.P. ELectricity
demandas jf it were an arrearof land revenue.
Manual
7. Power to make rules.- (1) The State Government may, by notification, make rules
generally for carrying out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such
rules may provide for all or any of the following matters, namely :-
(a) the form of the bill for various dues payable by a debtor to a Government electrical
undertaking;
(b)
(c)
(d)
(e)
the amount or scale of penalty payable on non-payment of such dues by due date;
the form and costs of notice of demand, the mode of the service thereof and the,
costs of recovery;
the form of the certificate under sub-section (2) of section 6; and
any other matter which has to be or may be prescribed.
(3) All rules made under this Act shall be laid on the table of the Madhya Pradesh
Legislative Assembly.
8. Recovery of arrears ofdues.- All arrears of dues payable to a Government electrical
undertaking and outstanding against a debtor at the commencement of this Act shall also be
recoverablein the mannerprovidedfor in this Act and the rules made thereunder:
Provided that in the case of such arrears-
(i) it shall not be necessary to issue a bill as contemplated by section 3; and
(ii) any penalty chargeable for the non-payment of such arrears on the date by which
such dues were to be paid, in accordancewith rulesor practiceas hithertoprevailing,
shall be deemed to be penalty duly prescribed under sub-section (2) of section 3:
Provided further that the notice of demand for such arrears of dues and such penalty as
contemplated by section 4, or as the case may be, a certificate as required by sub-section (2)
of section 6 may be issued after the commencement of this Act.
9. Extension of period of Iimitation.- Notwithstanding anything in the Indian
Limitation Act, 1908 (Central Act No.9 of 1908), or any other law for the time being in
force, the period of limitation in respect of any suit filed or that may be filed by or on behalf
of the Board-
(a) by virtue of sub-section (1) of section 60 of the Electricity (Supply) Act, 1948
(Central Act No. 54 of 1948) for the recovery of any dues which have accrued
before the date of the first constitution of the Board shall be, and shall always be
deemed to have been six years from the date of the first constitution of the Board;
(b) for the recovery of any dues accruing after the date of the first consti!ution of the
Board, sh,1I be and shall always be deemed to have been three years from the time
from whicl, the period of limitation began or would begin to run under the said
Act against a like suitby a private person or five' years from the date of the first
constitution of the Board, whichever period expires later.

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