IN THE HIGH COURT OF KARNATAKA
S.G. Pandit, J.
Prashanth Shetty – Appellant
Versus
Managing Director, Descom Corporate Office – Respondent
Writ Petition No. 4423 of 2020
Decided On : 24-03-2021
ELECTRICITY THEFT - Unauthorized Use of Power - Sec. 126 (3) of the Electricity Act, 2003 - Sec. 135 of the Act - Clauses 42.01, 42.02 and 42.05 of the Supply Code
Fact of the Case:
The petitioner was using power sanctioned for industrial purpose for a commercial purpose, leading to a criminal case being filed against them. The petitioner filed objections to a back billing notice, but the objections were not considered by the 4th respondent.
Finding of the Court:
The court found that the petitioner was utilizing power for a purpose other than the one for which it was sanctioned, leading to the issuance of a back billing notice. The court directed the 4th respondent to consider the objections filed by the petitioner and pass a final assessment order within three months.
Issues: Unauthorized use of power, consideration of objections to back billing notice, applicability of Sec. 126 and Sec. 135 of the Electricity Act, 2003
Ratio Decidendi: The court held that the petitioner's unauthorized use of power fell under the provisions of Sec. 126 of the Act, and the 4th respondent was legally bound to pass a final assessment order after considering the objections filed by the petitioner.
Final Decision: The writ petition was partly allowed, and a writ of mandamus was issued to the 4th respondent to consider the objections filed by the petitioner and pass a final assessment order within three months.
JUDGMENT :
1. The petitioner is before this Court under Article 226 of the Constitution of India praying for a writ of certiorari to quash the impugned memorandum (Annexure-L) bearing No.PoAa/Jada/CB.Memo/36/2019 dtd. 7/8/2019 issued by the 3rd respondent and for a writ of mandamus directing the 4th respondent to consider the objections (Annexure-C) dtd. 13/11/2019 to the "Back Billing notice and thereafter to pass final assessment order as required under Sec. 126 (3) of the Electricity Act, 2003 (for short 'the Act').
2. Heard Sri K. Srinivasa, learned counsel for the petitioner and Sri G.C. Shanmukha, learned counsel for the respondents 1 to 4. Perused the writ petition papers.
3. Learned counsel for the petitioner would submit that the power was sanctioned to the petitioner's premises bearing RR. No. AKLHT 305 with sanctioned load of 500 KVA. The petitioner was engaged in the business of manufacture and supply of tiles and civil contract works. It is submitted that on 25/9/2019 the 3rd respondent inspected the petitioner's premises and it is alleged that the petitioner is dishonestly and unauthorizedly using the power sanctioned for other than the purpose for which it was sanctioned. It is further alleged that as the petitioner was using the power for hot mix plant, it would not fall under industrial use and separate tariff under HT-2(a)(i) would be applicable. Thus on the report of the 3rd respondent, 4th respondent issued Back Billing notice (Annexure-B) dtd. 19/10/2019. Learned counsel for the petitioner would contend that utilization of power, at the best would be unauthorized use and it would not amount to theft. Therefore, the respondents are required to consider the objections of the petitioner as per Annexure-C dtd. 13/11/2019 and 4th respondent is required to pass order under Sec. 126 of the Act. Thus he submits that without going into the question of validity of Memorandum (Annexure-L) dtd. 7/8/2019, 4th respondent be directed to consider the objection filed by the petitioner to the back billing notice and pass orders under Sec. 126 of the Act.
4. Per contra, Sri G.C. Shanmukha, learned counsel for the respondents submits that the petitioner was sanctioned power for granite industry, whereas the petitioner as on the date of inspection on 25/9/2019 was utilizing the power sanctioned for the purpose of godown, for Hot Mix Plant without permission. Therefore, FIR was filed and criminal case was registered against the petitioner. Since the petitioner is using the power unauthorizedly, it is his submission that Sec. 135 of the Act would be applicable and not Sec. 126 of the Act. Thus he prays for rejection of the petition.
5. It is not in dispute that power was sanctioned to the petitioner's premises bearing R.R.No. AKLHT 305 with sanctioned load of 500 KVA for industrial purpose. On 25/9/2019 the petitioner's installation was inspected by the staff of Executive Engineer (Electrical) Vigilance and it was found that the petitioner was utilizing the power sanctioned for the purpose, other than the purpose for which it was sanctioned. Criminal case was filed in Cr.No.109/2019 with Ramanagara Police Station under Sec. 135(1), of Electricity Act, 2003 r/w Sec. 379 IPC. Thereafter, on 19/10/2019 notice Annexure-B is issued directing the petitioner to pay the back billing charges within 15 days as per the KERC (ES&D) Sec. 42.07 from the date of receipt of the letter or to file objection if any within 15 days from the date of receipt of the letter. It is the case of the petitioner that, petitioner filed objections as per Annexure-C dtd. 13/11/2019, but the said objection is not considered by the 4th respondent. Annexure-B indicates that the back billing notice is issued under Clause 42.07 of the Conditions of Supply of Electricity of the Distribution Licensees in the State of Karnataka (for short 'the Supply Code'). Clause 42.07 provides for passing assessment order on account of prejudicial use of power under Clauses 42.01, 42.02
Unauthorized use of electricity includes misuse or malpractices while using electricity, and the assessing officer is legally bound to pass a final assessment order after considering objections.
The assessing officer must establish unauthorized use of electricity before issuing a final assessment order, which can be appealed under Section 127 of the Electricity Act, 2003.
Electricity - Unauthorized use of electricity - Assessment of electricity charge contemplated in this section is immediately after disconnection but before lodging complaint and that too for the purp....
Provisional assessment under Electricity Act Section 126 invalid without inspection of consumer premises or records maintained by consumer; licensee’s internal MRI/consumer records insufficient basis....
The main legal point established in the judgment is that the assessment of the bill for unauthorized use was correctly done under Section 126 of the Electricity Act, 2003, and Section 56 of the Act d....
Distinction exists between civil liability under Section 126 and criminal liability under Section 135 of the Electricity Act, with mens rea being essential for theft prosecution.
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