Legal profession not a commercial activity; lawyer's chamber does not attract commercial electricity tariff rates: Allahabad High Court

The profession of an advocate does not constitute a commercial activity and, therefore, should not be subjected to commercial rates for electricity consumption, the Allahabad High Court recently held. [Tehsil Bar Association , Sadar Tehsil Parisar, Gandhi Nagar, Ghaziabad vs UPERC].A bench of Justices Surya Prakash Kesarwani and Anish Kumar Gupta observed that an advocate, who is designated as an officer of the court, is forbidden from engaging in business or commercial activities. The Bar Council of India has rules against advertising their services, the Court further noted. Advocates also have defined duties towards the court, clients, colleagues, and opponents, the Court observed. .The Court explained that these features categorically distinguish the legal profession from trade or business. Therefore, it can not be called a commercial activity, the Court held.."The advocate's profession cannot be categorised to be charged under LMV-2 (commercial category), which is applicable to the commercial activities. The lawyer's activities are not commercial establishment as held by the Supreme Court and by various High Courts ... The Lawyers chambers / offices shall be charged only under LMV-1 Domestic category as the lawyers neither do any trade or business nor are involved in any commercial activity." the judgment stated..The Court was hearing a plea by a Tehsil Bar Association in Uttar Pradesh against the applicability of commercial electricity consumption rates to lawyers' chambers..The petitioners argued that the profession of a lawyer was not a commercial activity and that by playing a role in the administration of justice, they serve society.They relied on circulars issued by the Uttar Pradesh Electricity Regulatory Commission (UPERC) in which the judiciary was placed under LMV-1 category, which is applicable to domestic users of electricity. The petitioners also underlined that the chambers of the Noida District Bar Association were being charged under the LMV-1 category. .The counsel for Uttar Pradesh Power Corporation countered that as per the rate schedule for the financial year 2022-23, the activities of lawyers fall under 'non-domestic purposes', which is to be charged for electricity consumption under LMV-2 category.Further, it was contended that the petitioners should approach the UPERC as the UPERC approves the rate schedules..The Court, however, noted that in the rate schedule for the financial year 2022-23, activities of advocates did not find a mention under any category.Further, it observed that the LMV-2 category was applicable for non-domestic purposes like all types of shops (including hotels, restaurants, guest house, private transit hospitals, private student hostel, etc.).In order to bring the lawyers' offices within the categories of non-domestic purposes, the activity must be established to be of similar nature as illustrated in the rate schedule under category LMV-2, the Court reasoned. Relying on the apex court's decision in M.P. Electricity Board and Ors. v. Shiv Narayan Chopra, the Court reiterated that the legal profession is non-commercial in nature and that commercial tariff rates cannot be charged from lawyers for their work.Accordingly, the Court allowed the petition and ordered that earlier circulars imposing LMV-1 rates would be applicable to lawyers' chambers within the court premises..[Read Order]