Unpaid bills: Water board wants restraining order on power disconnections
Why should Karachi’s people be penalised for a fight between two companies?
KARACHI:
The people of Karachi should not be penalised for a fight between the water board and the electricity supply company, argued a lawyer on Wednesday before the court reserved its judgment to be announced later.
The Karachi Water and Sewerage Board (KWSB) has requested a permanent restraining order against the Karachi Electricity Supply Company (KESC). KESC had cut off its supply over unpaid bills. But KWSB said that pumping stations were important installations that were exempt from this kind of punitive action.
On Wednesday, Justice Munib Akhtar of the Sindh High Court reserved his judgment to be announced later for the permanent restraining order.
The bench had heard Abrar Hasan advocate, counsel for KWSB, Qazi Majid Ali for the Sindh government and Abid Zuberi advocate for KESC.
Ali referred to the “implementation agreement” signed between the federal government and KESC to second KWSB’s contentions that people should not be penalised for friction between the two organisations.
Barrister Abid Zuberi opposed the request for a restraining order and said that KWSB was not a party to or signatory to the contract between the government and KESC and thus could not benefit from it. KESC is a commercial organisation and KWSB also provides water to its consumers as a commercial activity as it generates revenue from this.
He said that in view of the commercial activity, if the water board failed to pay its electricity bills, KESC could lawfully disconnect its supply in return. KESC’s lawyer argued that KWSB had failed to comply with an earlier order to deposit the bill with the high court and hence the decision to disconnect it was justified.
Earlier on, while bringing to the fore for the first time an “implementation agreement” KESC and the government signed, KWSB sought the court’s intervention. The court summoned KESC.
Appearing before the single judge, Abrar Hasan advocate, submitted that according to the “implementation order”, the government sold the monopoly company at a cheaper price against an undertaking that the electric supply to strategic installations would not be disconnected at any point of time.
KESC raises demands for payment varying from Rs17 billion to Rs20 billion and threatens disconnection. Now it is disconnecting the supply for four hours daily, disrupting the supply to the city of Karachi.
The closure may result in a disaster as the water-rising main could burst at any time, depriving millions of Karachi’ites of water for days and this could lead to water riots, maintained the KWSB.
The city is deprived of millions of gallons of water per day due to a disruption of the electric supply by KESC, he submitted, appealing to the court to intervene and permanently restrain KESC from disconnecting the supply.
The “implementation agreement” provides a comprehensive mechanism for the recovery of any dues accepted or disputed from a strategic customer, said KWSB. It was also submitted that according to the agreement, KESC would not demand any dues up to 2009 and that no coercive action would be taken against the strategic customers and the parties would approach the federal adjustor if there was a dispute.
The plaintiff referred to an order passed by a single bench on February 27, 2012 in which KWSB was asked to deposit one billion rupees with the high court and furnish a bank guarantee of four billion rupees but at that time this agreement was not available with the plaintiff and its discovery has changed the nature of the controversy.
The court was asked to recall, modify, alter or rescind the order of February 27, in view of the new facts that had come to light.
Published in The Express Tribune, April 19th, 2012.
The people of Karachi should not be penalised for a fight between the water board and the electricity supply company, argued a lawyer on Wednesday before the court reserved its judgment to be announced later.
The Karachi Water and Sewerage Board (KWSB) has requested a permanent restraining order against the Karachi Electricity Supply Company (KESC). KESC had cut off its supply over unpaid bills. But KWSB said that pumping stations were important installations that were exempt from this kind of punitive action.
On Wednesday, Justice Munib Akhtar of the Sindh High Court reserved his judgment to be announced later for the permanent restraining order.
The bench had heard Abrar Hasan advocate, counsel for KWSB, Qazi Majid Ali for the Sindh government and Abid Zuberi advocate for KESC.
Ali referred to the “implementation agreement” signed between the federal government and KESC to second KWSB’s contentions that people should not be penalised for friction between the two organisations.
Barrister Abid Zuberi opposed the request for a restraining order and said that KWSB was not a party to or signatory to the contract between the government and KESC and thus could not benefit from it. KESC is a commercial organisation and KWSB also provides water to its consumers as a commercial activity as it generates revenue from this.
He said that in view of the commercial activity, if the water board failed to pay its electricity bills, KESC could lawfully disconnect its supply in return. KESC’s lawyer argued that KWSB had failed to comply with an earlier order to deposit the bill with the high court and hence the decision to disconnect it was justified.
Earlier on, while bringing to the fore for the first time an “implementation agreement” KESC and the government signed, KWSB sought the court’s intervention. The court summoned KESC.
Appearing before the single judge, Abrar Hasan advocate, submitted that according to the “implementation order”, the government sold the monopoly company at a cheaper price against an undertaking that the electric supply to strategic installations would not be disconnected at any point of time.
KESC raises demands for payment varying from Rs17 billion to Rs20 billion and threatens disconnection. Now it is disconnecting the supply for four hours daily, disrupting the supply to the city of Karachi.
The closure may result in a disaster as the water-rising main could burst at any time, depriving millions of Karachi’ites of water for days and this could lead to water riots, maintained the KWSB.
The city is deprived of millions of gallons of water per day due to a disruption of the electric supply by KESC, he submitted, appealing to the court to intervene and permanently restrain KESC from disconnecting the supply.
The “implementation agreement” provides a comprehensive mechanism for the recovery of any dues accepted or disputed from a strategic customer, said KWSB. It was also submitted that according to the agreement, KESC would not demand any dues up to 2009 and that no coercive action would be taken against the strategic customers and the parties would approach the federal adjustor if there was a dispute.
The plaintiff referred to an order passed by a single bench on February 27, 2012 in which KWSB was asked to deposit one billion rupees with the high court and furnish a bank guarantee of four billion rupees but at that time this agreement was not available with the plaintiff and its discovery has changed the nature of the controversy.
The court was asked to recall, modify, alter or rescind the order of February 27, in view of the new facts that had come to light.
Published in The Express Tribune, April 19th, 2012.