Legal Profession Not Commercial Activity - Lawyers' Chambers to be Charged Under Domestic Rates of Electricity: Allahabad HC

In a significant ruling, Allahabad High Court has upheld the distinct character of the legal profession and ruled that it does not fall under the purview of commercial activities. The judgment clarifies the charging of electricity consumption for lawyers' chambers located within court premises and sets a precedent for uniformity in rate application.

In the judgment, the Court categorically stated, "The legal profession in catena of cases has been held to be non-commercial activity and it is not a trade or business." It emphasized that lawyers' offices and chambers are primarily engaged in a profession that involves personal skill, intelligence, and individual characteristics, which are inherently different from commercial activities.

The Court thoroughly examined various provisions, including Section 3(1) and Section 86 of the Electricity Act, 2003, along with the U.P. Electricity Supply Code, 2005. It noted that the State Commission has the authority to determine electricity tariffs, guided by the National Electricity Policy, National Electricity Plan, and Tariff Policy.

The contentious issue revolved around the applicability of rate schedule LMV-2, which is designated for non-domestic purposes such as shops, hotels, and commercial establishments. The legal profession, being non-commercial in nature, was found to be ineligible for classification under this rate schedule.

Quoting several landmark cases, including Dr. D.M Surti Vs. State of Gujarat and V. Sasidharan v. M/s Peter and Karunakar, the Court firmly established that advocates' activities are not of a commercial character, but rather a solemn and serious occupation that requires specialized knowledge and skill.

The judgment addressed the issue of discriminatory charging of electricity rates for similar premises within the same state, stating that different power corporations cannot treat consumers differently. It directed the respondents to charge lawyers' chambers under rate schedule LMV-1, applicable to domestic users, ensuring uniformity and fairness in electricity billing.

Date of Decision: 03-08-2023

Tehsil Bar Association , Sadar Tehsil Parisar , Gandhi Nagar, Ghaziabad  vs U.P. Power Corporation Limited And 3 Others