The statutory deposit made under the Electricity Act does not carry an entitlement to interest when an assessment is set aside, as the Act does not provide for such a liability.

JUDGMENT :

AMIT BORKAR, J.

1. By this writ petition under Article 227 of the Constitution of India, the petitioner challenges the judgment and order passed by the Appellate Authority under Section 127 of the Electricity Act, 2003. The Appellate Authority set aside the final assessment order passed by the Assessing Officer, which had held the petitioner guilty of unauthorised use of electricity on the allegation that the petitioner had bypassed the electricity meter installed at its premises.

2. The petitioner runs a unit for manufacturing plastic granules since 2006 and has been a consumer of the respondent-licensee since 2008. On 26 February 2011, at about 00:12 hours, respondent No.2 along with other officers inspected the petitioner’s factory and meter cabin. During the inspection, the officers noticed that the petitioner’s plastic processing machines were running. However, according to the respondents, the meter did not show any corresponding load. After some delay in obtaining the key to the meter cabin, CMRI data was downloaded at 00:31 a.m. The data, according to the respondents, supported the discrepancy. A provisional assessment was issued on the basis of connected load. The petitioner sought a personal hearing.

3. Respondent No.2, after examining the downloaded data, noted that only phase B showed a constant load of 2.2 amperes. The other two phases showed zero amperes, although the machinery was a three-phase load. The respondents treated this as unauthorised use of electricity under Section 126(6)(b)(ii) of the Act. A final assessment followed. The petitioner challenged the assessment under Section 127. He contended that the machinery was not operating at the time of inspection and that the workers had nearly completed their work. He deposited 50 percent of the assessed amount as required by Section 127(6). The Appellate Authority heard both sides and allowed the appeal. It held that the Assessing Officer had not adopted the correct procedure for concluding that there was unauthorised use. The final assessment was set aside. The Authority directed refund or adjustment of the 50 percent deposit in future bills. The Appellate Authority, however, declined to grant interest. The petitioner has filed the present petition seeking interest on the statutory deposit made under Section 127(6).

4. Learned counsel for the petitioner submitted that an amount of Rs. 6,75,000 was deposited under Section 127(2). He relied on Section 127(6), which prescribes interest at 16 percent per annum, compounded every six months, whenever a consumer defaults in payment of the assessed amount after thirty days from the date of assessment. According to him, when the statute imposes interest on the consumer for delayed payment, fairness requires that the licensee should also pay interest if the assessment is later declared unsustainable. He submitted that the statutory scheme treats the assessment as a financial burden. Therefore, when that burden is lifted by an appellate order, the amount deposited must be restored with interest. He referred to Section 62(6) of the Act and submitted that if a licensee recovers any amount in excess of the tariff determined under that provision, then the excess must be refunded with interest at the bank rate. He submitted that this indicates the legislative intent that any amount recovered without authority of law must carry interest. On this basis, he claimed entitlement to interest at 18 percent. Learned counsel f