The Supreme Court on Thursday granted K-Electric leave to appeal against Sindh High Court (SHC) verdict, summoning sectaries Ministry of Finance, Water and Power with Attorney General for Pakistan to explain whether the federal or provincial government should pay Rs 28.74 billion outstanding dues of Karachi Water & Sewerage Board (KWSB).
K-Electric Limited - formerly Karachi Electricity Supply Company Limited - has challenged a Sindh High Court's division bench's verdict under Article 185 (4) through company secretary making the KWSB through its Managing Director, Federation of Pakistan through Secretaries Ministry of Finance and Ministry of Water & Power, Province of Sindh through Secretary Local Government and City District Government Karachi through its Administrator respondents.
The petitioner said that on April 30, 2014 the KWSB owed a huge amount of approximately Rs 28.74 billion, excluding a mark-up, on account of unpaid electricity charges to the K-Electric. The appellant further said that outstanding amount was increasing on monthly basis as a result of unpaid current monthly bills by the KWSB.
The petitioner's counsel further contended that the federation owes an amount of Rs 36.24 billion to his client on account of unpaid TDC claims and other heads whereas Sindh owes an amount of approximately Rs 9 billion to his client.
The counsel informed the court that on October 05, 2011 his client asked KWSB to clear its outstanding dues within a period of 7 days otherwise eclectic supply would be disconnected, saying after the lapse of stipulated time four electricity connections provided to the KWSB were disconnected on October 12, 2011.
The KWSB challenged the electricity disconnection in Sindh High Court seeking an injunctive relief against the K-Electric on grounds that huge outstanding amounts have to be received from the Federation of Pakistan, Province of Sindh and City District Government of Karachi against provision of services of supply of water and sewerage facilities to them.
The petitioner's counsel told the court that his client restored electric supply to KWSB on the assurance of the latter to pay the outstanding dues but again a disconnection notice was served to the KWSB on its failure to deposit outstanding dues on January 01, 2012.
On February 27, 2012, a Single Judge of SHC passed an ad-interim order restraining the K-Electric Limited from disconnecting the KWSB electricity connections subject to depositing an amount of Rs 1 billion with a bank guarantee of Rs 4 billion in the Nazir's office of the High Court within a period of 21 days from the decision of the court. The petitioner said that the KWSB failed to observe the SHC directives so the K-Electric Limited disconnected the electricity connection of the KWSB head office in pursuance of its earlier disconnection notice of January 01, 2012.
The petitioner further said that through a CMA No 2737/2012 the KWSB urged the SHC to recall its order of February 27, 2012 saying that instead of paying outstanding amount, the KWSB approached the SHC. A division bench of court restrained the K-Electric from interrupting the electricity supply to KWSB through an ad-interim order on November 26, 2013.
The counsel for K-Electric urged the apex court to direct the federation to pay outstanding dues of the KWSB amounting to Rs 28.74 billion. A three-member bench led by the Justice Mian Saqib Nisar summoned the secretaries of Ministry of Finance, Water and Power with Attorney General for Pakistan and adjourned the hearing of the case till February 25.
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