MP High Court: Lawyers Using Home Offices Cannot Be Charged Commercial Electricity Tariff

The Madhya Pradesh High Court has held that advocates operating their offices from residential premises cannot be charged electricity bills under commercial tariff rates merely because professional work is carried out from home.

Justice Milind Ramesh Phadke passed the ruling while allowing a petition filed by advocate Santosh Agrawal, who challenged orders issued by the electricity distribution company classifying his residential office in Gwalior as a commercial establishment.

The petitioner argued that legal practice is a professional activity based on individual skill and expertise and cannot be treated as a business or trading activity. He contended that an advocate working from home should continue to receive electricity supply under the domestic category.

The electricity company defended its decision by stating that the premises were being used for non-domestic purposes and therefore attracted commercial tariff rates.

After examining earlier judicial precedents, the Court observed that commercial activity generally involves buying, selling, or trade, elements that are absent in the legal profession. The Court further noted that there is a clear distinction between professional services and commercial enterprises.

Relying on previous decisions of the Supreme Court and various High Courts, the bench clarified that while offices functioning from independent commercial premises may attract higher tariffs, advocates using part of their residence as office space cannot be subjected to commercial electricity charges.

The Court accordingly quashed the impugned orders and directed authorities to levy residential tariff rates.