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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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