K-Electric’s demand notice against Pakistan Railways suspended

The Sindh High Court (SHC) on Wednesday suspended K-Electric’s demand notice with regard to the disconnection of electricity of the Pakistan Railways until further orders. The interim order came on a petition filed by the PR against the demand notice issued by KE for the disconnection of its installations.

The petitioner’s counsel Syed Ehsan Raza said there is already a dispute between KE and the PR with regard to the payment of the usage of the Railways’ land by the power utility. Raza said the PR had issued a demand notice to KE for approximately Rs78 billion for the utilisation of the Railways’ land, but the power utility obtained a stay order in the matter.

He said the KE issued a demand notice for the recovery of arrears and for disconnection proceedings for the PR’s installations with mala fide intentions. The PR is a public entity that provides public service, and any disconnection of electricity to the Railways’ installations will cause hardships to the public, as it will disrupt the PR’s operations and services, he added.

He requested the court to declare that the PR is a federal government department and entitled to recover its dues towards the utilisation of its land by KE, and that the demand notice issued by the power utility to the Railways for power disconnection is unlawful under the electricity law that provides protection to the PR.

He also sought a restraining order against coercive action by KE and interference in the smooth functioning of the PR’s operation in Karachi, as the petitioner is a star consumer paying Rs120 million a month, with credit balance in some accounts of the power utility.

After the preliminary hearing of the petition, a constitutional bench of the SHC headed by Justice Sana Akram Minhas issued notices to KE and others, and in the meantime suspended the impugned demand notice of the power utility.

Earlier, KE had also obtained a restraining order over the PR’s demand notice. KE’s counsel said the impugned demand notice for the installation of electric poles and underground cables were made under Rule 2 of the Railways Land and Property Rules, 2023, purportedly framed under Section 47 of the Pakistan Railways Act.

The counsel said Section 47 specifies the subjects for which the PR can frame rules, and it does not empower the Railways to frame any rule demanding such charges, as claimed in the demand notice.

He said that even otherwise such rules cannot be given a retrospective effect, adding that when the petitioner had replied to the impugned notice, the PR did not pay any heed to the response.

The PR is adamant to remove the installations of the petitioner in case the charges are not paid, he added, expressing the apprehension that if an ad-interim injunction is not granted, the petitioner will suffer irreparable losses.