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Synopsis

In a recent verdict, the Allahabad High Court held that the activities/profession of an advocate is not a commercial activity, attracting the commercial rate of electricity consumption therefore lawyers' chambers/offices should be charged only under the LMV-1 Domestic category.

The division bench of Justice Surya Prakash Kesarwani and Justice Anish Kumar Gupta underscored that the lawyers neither do any trade or business nor are involved in any commercial activity, therefore, the Rate Schedule LMV-2, which is applicable for the commercial activities, cannot be applied for the electricity supplied to the lawyers chambers.

Moreover, the bench held that the authorities cannot discriminate between the electricity supply to the advocates' chambers in different court compounds, in the same State, where the rate schedules are approved by the same authority.

Court passed the order in a writ petition filed by Tehsil Bar Association, Sadar Tehsil Parisar, Gandhi Nagar, Ghaziabad. The members of the petitioner association submitted before the court that they had chambers at the Tehsil Sadar campus with a valid electricity connection installed by UP Power Corporation Limited.

The advocates further submitted that after grant of electricity connection in their chambers, the respondent authorities started charging the electricity charges at commercial rates which were objected by the petitioner association, and since their grievances were not redressed, they filed a writ petition in 2019 in which the court had observed that only domestic rates were applicable for lawyers' chambers. 

When the lawyers again approached the authorities, the Power Corporation relying upon clause 3.3 (e) of the UP Electricity Supply Code, 2005, observed that since the chambers of the advocates in the tehsil compound were not in the category of domestic use of electricity, therefore, electricity consumed could not be treated as domestic consumption.

Against Power Corporation's this order, the petitioner association moved the high court. 

The counsel for the association submitted that as per the tariff schedule for the Financial Year 2016-17, residential premises of the professionals such as advocates, doctors, artists, consultants, etc., including their chambers were covered under the category of LMV-1 (domestic).

Moreover, he asserted that the profession of an advocate is not a commercial activity rather it is a service to the society, therefore, it is certainly not a profession of commercial nature.

On the other hand, the counsel for the respondents argued that the activity of lawyers in their chambers is a non-domestic activity. He referred to Clause 13 of the rate schedule for Financial Year 2020-23 as approved by the U.P. Electricity Regulatory Commission.

The rate schedule for the year 2022-23 does not provide for a specific rate schedule for Lawyers' Chambers. Clause 13 provides for the applicability of LMV-2, for an activity/ category, which is not covered in any rate Schedule, the counsel submitted. 

Court, after perusal of the illustrative definition of the non-domestic purpose as indicated in the rate schedule under LMV-2, opined that the lawyers' chambers would not come within the definition of non-domestic purpose.

"The legal profession in a catena of cases has been held to be non-commercial activity and it is not a trade or business. By the Rules framed by the Bar Council of India, the Lawyers are also prohibited from actively participating in any trade or profession", court emphasised. 

Further, referring to an array of judgments of the top court as well as high courts, the division bench held that the legal profession by no stretch of imagination can be called as the commercial activity, trade or business.

Therefore, court held that the rates schedule LMV-2 which are purely commercial relating to trade and business cannot be applied to the offices of the legal professionals.

Case Title: Tehsil Bar Association, Sadar Tehsil Parisar, Gandhi Nagar, Ghaziabad v. U.P. Power Corporation Limited And 3 Others