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Maharashtra State Electricity Distribution Co. Ltd. v. The Appellate Authority & Anr.

Civil Appeal · 2018 INSC 144Decided 15 Feb 2018
Civil Appeal No. 3370 of 2007
Justice R.K. Agrawal · Justice Abhay Manohar Sapre

Background

The State Electricity Board's inspection team found tampering with a meter at a consumer's oil-mill factory in Akola, Maharashtra, and raised a provisional and then a final assessment bill of over Rs. 62 lakh for unauthorized use of electricity under Section 126 of the Electricity Act, 2003. The consumer challenged this before the Appellate Authority and then the Bombay High Court, which dismissed the Board's writ petitions but partly allowed the consumers' petitions, setting aside the Appellate Order and remanding the matter back to the Assessing Authority.

Decision Breakdown

The Supreme Court upheld the High Court's approach, holding that the Electricity Act, 2003 (which came into force on 10.06.2003) applied because the inspection took place on 02.08.2003, after the Act commenced. It held that a consumer does have a statutory right of appeal under Section 127 against an assessment made under Section 126, rejecting the Board's argument otherwise. The Court declined to decide certain broader legal questions raised by the Board, leaving them open for a more appropriate case, and dismissed the appeals, directing the authorities to pass a fresh, lawful assessment order within three months as per the High Court's directions.

Lesson Learnt

A consumer billed for "unauthorized use" of electricity under Section 126 of the Electricity Act is not without recourse: the law gives a statutory right of appeal, and assessment orders must follow the procedure the Act actually prescribes.

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

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