Allahabad High Court: Advocacy is Not a Commercial Activity, Commercial Rate of Electricity Not Applicable

LI Network

Published on: 7 August 2023 at 11:50 IST

The Allahabad High Court recently ruled that the profession of an advocate is not a commercial activity, and therefore, the commercial rate of electricity consumption prescribed in Rate Schedule LMV-2 is not applicable to lawyers’ chambers.

The Division Bench of Justice Surya Prakash Kesarwani and Justice Anish Kumar Gupta observed that lawyers’ chambers should be charged only under LMV-1 Domestic category, as lawyers are not engaged in trade or business and do not conduct commercial activities.

The case involved the Tehsil Bar Association, an association of advocates, whose members had their chambers at the Tehsil Sadar campus with valid electricity connections installed by the respondent Power Corporation.

After the electricity connection was granted, the Power Corporation started charging commercial rates for electricity, leading the association to approach the High Court seeking relief.

The High Court, upon careful examination of the rate schedules approved by the U.P. State Regulatory Commission, found that the activities of advocates and other professionals did not fall under any of the rate schedules, and therefore, the legal profession cannot be classified as a non-domestic purpose or commercial activity.

The court emphasized that the legal profession is non-commercial and prohibited by the Bar Council of India from participating in trade or business.

The Court held that lawyers’ chambers, whether in residential buildings or court premises, are part of the judicial premises and should be charged under LMV-1.

It also stated that the rate schedule LMV-2, applicable to commercial activities, cannot be imposed on lawyers’ chambers within court compounds.

The Court noted that different power corporations cannot treat electricity consumers differently in the same state, and thus, lawyers’ chambers should be charged under the domestic rate schedule.

In conclusion, the Allahabad High Court directed the respondents to charge lawyers for electricity consumption in their chambers as per rate schedule LMV-I, confirming that the profession of an advocate is not a commercial activity and should not be subjected to commercial electricity rates.

Related Post