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Article Published in the Express Magazine Dated October 20, 2001
General Attorney : Rajiv K. Luthra

My neighbours have tampered with their electricity meters to reduce their bills. They say that if they get caught they will feign ignorance and will be able to get away scott free. Can they do that? If caught, what will the penalty be?

Tarun Ganguly, Calcutta

Tampering with the electricity meter is a punishable offence. A consumer has to use all reasonable means in his power to ensure that no seal affixed to his meter is broken other than by the supplier. If the seal is broken even the consumer who has not broken it himself, shall be punishable for the offence under Rule 138 of the Electricity Rules, 1956 ("Rules"), with fine which may extend to Rs 50/-, unless he proves that he used all reasonable means in his power to ensure that the seal should not be broken. In the absence of such proof, the liability of the consumer in respect of the breakage of the seal is absolute under the Rules. As per the Rules, any person breaking the seal himself shall be punishable with fine that may extend to Rs. 200/-.

If a person is found to abstract, consume or use electrical energy dishonestly, he shall be guilty of committing a statutory theft under Section 39, of the Electricity Act, 1910. The theft may be proved by direct or circumstantial evidence. Direct evidence of the theft is rarely forthcoming. The existence of artificial means for such abstraction, is prima facie evidence of such dishonest abstraction. Energy may be dishonestly abstracted by artificial means or unauthorized devices. By tampering with the meter and causing it to record less than the units actually passing through it, the consumer may take the unrecorded energy without paying for it. The punishment for dishonestly abstracting, consuming or using energy is imprisonment for a term which may extend to three years or with fine, which will not be less than Rs.1000/- or with both. However, this is also subject to State Amendments.

Further, as a result of vigilance checking, of seals of meter body/meter terminal block and finding that they are tampered with, damaged or missing, indicating pilferage, the electric supply of the consumer may be disconnected by the Board, without giving any further hearing. It may also call upon the consumer to make payment of compensation for unauthorised use and issue notice to the consumer for payment of difference of the assessed amount alleged to be due towards the theft of the electricity.

My brother and I hold shares of a number of companies. The shares are being held by him as the first holder and I as a joint holder. Now we want to change our shares into individual shares by dividing them. What procedure needs to be followed for the same?

Anil Gupta and brother, New Delhi

The process of conversion of joint ownership into separate ownership necessarily involves a transfer. Therefore, as held by the High Court, joint shareholders intending to split of the shares and getting them registered in their individual name, must follow the procedure for transfer of shares as prescribed in Section 108 of the Indian Companies Act, 1956.

An instrument of transfer has to be delivered to the company. It will have to be executed by both the joint holders as transferors and by the individual in whose sole name any shares are to be registered as transferee, and specifying the name, address and occupation of the transferee. Further, it has to be stamped with the prescribed stamp duty in respect of the shares and accompanied by the certificate relating to the shares or by the certificate of letter of allotment of the shares.

The transfer also has to be accepted by the Board of Directors. Thereafter, the individual names of the joint shareholders as sole owners have to be registered in the company’s register of members.

 
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