Electricity Act, 2003 – ss. 126, 127 – Respondent No.2 are consumers of electricity, which is supplied to them by the State Electricity Board – The sleuths of the Board visited the respondent no.2’s factory and replaced electricity meter with a new meter – Sleuths again visited the factory and on inspection found some tampering with the meter seals, this led to making of provisional assessment by the appellant u/s.126 for unauthorised use of electricity – Writ Petition – During the pendency of the writ petition, final assessment order was passed against the respondent no.2, however, same was quashed and set aside and matter remanded to the Authority – Again, Authority passed final order against the respondent no.2 – Appeal disposed of by the Appellate Authority – Writ petitions filed, both by the Board and the respondent no.2consumer – High Court remanded the case to the Assessing Authority and directed the parties to abide by the provisions of ss.126/127 – Held: There is no reason to interfere with the judgment of the High Court, which is sustainable on facts – High Court while allowing the consumers’ writ petitions and, in consequence, setting aside of the Appellate order passed u/s.127 of the Act by the Appellate Authority rightly remanded the case to the Assessing Authority for making provisional assessment u/s.126 and then to take recourse u/s.127 of the Act for filing appeal, if need arises – Directions of the High Court in conformity with the scheme of the Act – Thus, the authorities directed to comply with the directions of the High Court and pass consequential order u/s.126.
Dismissing the appeals, the Court
HELD: 1. The High Court while allowing the consumers’ writ petitions and, in consequence, setting aside of the Appellate Order passed under Section 127 of the Act by the Appellate Authority rightly remanded the case to the Assessing Authority for making provisional assessment under Section 126 of the Act and then to take recourse under Section 127 of the Act for filing appeal, if need arises. There is no reason to disturb these directions which are in conformity with the scheme of the Act. [Para 12] [541-E-F]
2. So far as the applicability of the provisions of the new Electricity Act, 2003 to the case at hand is concerned, though some doubts were raised about its applicability but it has no substance. The Act 2003 does apply to the facts of this case because the Act 2003 came into force on 10.06.2003 whereas the inspection of the Meter installed in respondent No.2’s factory premises was made by the sleuths of the Board on 02.08.2003. It is, therefore, clear that the Board made an inspection of the Meter after the Act 2003 came into force. The cause of action, therefore, accrued to the Board after the Act 2003 came into force and, therefore, the case of respondent No.2 was required to be dealt with in accordance with the procedure prescribed under the Act of 2003. [Paras 13, 14] [541-F-H; 542-A]
3. Since the action was taken by the Board against respondent No.2 (consumer) under Section 126 of the Act by raising the provisional/final bill and, therefore, respondent No.2 was well within their right to file an appeal against such demand under Section 127 of the Act before the Appellate Authority. [Para 15] [542-B]
4. There is no merit in the submission of the Board that respondent No.2 had no right of appeal under Section 127 of the Act to challenge the order/demand raised under Section 126 of the Act. In other words, respondent No.2 had right of appeal under Section 127 of the Act to challenge the order passed under Section 126 of the Act. [Para 16] [542-C]
5. Indeed, once the Act is held applicable to the controversy in question, a fortiori, all the provisions of the Act would then be applicable to the case which would obviously include a provision which provides a right of appeal to the Appellate Authority. In the scheme of the Act, Section 126 of the Act deals with assessment of electricity charges payable by such person (consumer) for unauthorized use of electricity whereas Section
135 deals with the cases of theft of electricity. In other words, once the Board detects the case of unauthorized use of electricity by any consumer, in such event, the Board gets a cause of action to proceed against such person/consumer under Section 126 or/and 135 under the Act. Both Sections 126 and 135 are independent in all respects and provide different kind of liability and consequences. One involves monetary liability (Section 126) whereas the other involves criminal liability (Section 135). The Board is, therefore, at liberty to take recourse to the provisions of Section 126 or/and 135 of the Act against such person/consumer as provided therein in accordance with law. [Paras 17-20] [542D-H]
6. In these circumstances, if the Board initiates any action against any person/consumer, then such action must be brought to its logical end in accordance with the procedure prescribed under the Act after affording an opportunity to such person/consumer. [Para 21] [542-G-H]
7. As a consequence to the dismissal of the appeals, the authorities are directed to comply with the directions of the High Court and pass consequential order under Section 126 of the Act in accordance with law in the case of consumers (respondents). [Para 23] [543-B]
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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