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Dakshin Gujarat Vij Company Limited & Anr. v. Vaibhav Metal Crusher (with connected appeal)

Civil Appeal · 2026 INSC 1157Decided 26 Oct 2026
Civil Appeal arising out of Special Leave to Appeal (Civil) Nos. 17868 of 2024 and 8778 of 2025
Justice Manoj Misra · Justice K.V. Viswanathan

Background

Two Gujarat electricity distribution companies accused consumers of theft, disconnected their power, and raised large supplementary bills demanding payment before reconnection. The High Court allowed reconnection on deposit of 50% of the demand, letting consumers object to the assessment, a ruling the companies appealed, arguing theft cases allow no such objection.

Decision Breakdown

The Supreme Court held that even in theft cases, since the Act provides no separate assessment procedure, the amount needed for restoring supply must use the same procedure as ordinary unauthorized-use cases, giving consumers a provisional assessment, a chance to object, and a right of appeal. However, this process is final only for restoring the connection; it doesn't override the Special Court's separate power to finally determine civil liability once a criminal theft complaint is filed, with any excess deposit refundable later.

Lesson Learnt

If disconnected over theft allegations, a consumer can get power restored by depositing at least 50% of the demanded sum and has the right to object and appeal, but any amount paid remains provisional until the Special Court finally decides actual liability.

Official source (sci.gov.in)View Judgment (PDF)

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Dakshin Gujarat Vij Company Limited & Anr. v. Vaibhav…