IN THE HIGH COURT OF DELHI AT NEW DELHI
Anup Jairam Bhambhani, J.
Tata Power Delhi Distribution Limited - Appellant
Versus
Rampal - Respondent
Writ Petition (Civil) No. 7749 of 2016
Decided On : 30-06-2020
ELECTRICITY ACT - UNAUTHORISED USE OF ELECTRICITY - JURISDICTION OF LOK ADALAT - PERMANENT LOK ADALAT - ADJUDICATORY POWERS - CONCILIATORY FUNCTION - JURISDICTION BARRED - INTERIM RELIEF - ADVERSE REMARKS - JUDICIAL PRONOUNCEMENTS.
Fact of the Case:
Petitioner, a power distribution company, challenged the order of the Permanent Lok Adalat (PLA) directing it to not disconnect the electricity connection of the respondent for non-payment of misuse charges and penalties without due process of law. The PLA had also made adverse remarks against the petitioner and directed that a copy of the order be circulated to various governmental authorities and senior officials.
Finding of the Court:
1. The PLA was not constituted under the Legal Services Authorities Act (LSA Act) but in compliance with the directions issued by the High Court in Abul Hassan (supra) to set up Permanent Lok Adalats to address the huge pendency of cases relating to public utility services. 2. The PLA was not a Lok Adalat organized under section 19 or a Permanent Lok Adalat constituted under section 22B of the LSA Act, as it lacked the requisite composition and constitution. 3. A Lok Adalat has only conciliatory function and no adjudicatory powers, while a Permanent Lok Adalat can adjudicate disputes if conciliation fails. 4. The PLA could not have entered upon any form of adjudication of the dispute and could not have granted any interim relief, as the dispute was covered under section 126 of the Electricity Act, which provides a specific mechanism for addressing such disputes. 5. Even if the PLA was intended to be a Permanent Lok Adalat, it could not have decided the dispute as the quantum of the dispute exceeded Rs. 10 lacs, which is the pecuniary threshold of the jurisdiction of a Permanent Lok Adalat under section 22C of the LSA Act.
Issues: 1. Whether the PLA was a "permanent and continuous Lok Adalat" set up in compliance with the directions issued by the High Court in Abul Hassan (supra), a "Lok Adalat" set up under section 19 of the LSA Act, or a "Permanent Lok Adalat" set up under section 22B of the LSA Act? 2. Whether the impugned award was within the ambit of the power and authority vested in the PLA? 3. Whether the PLA had the jurisdiction to entertain the dispute between the petitioner and the respondent?
Ratio Decidendi: 1. The PLA was neither a Lok Adalat organized under section 19 nor a Permanent Lok Adalat constituted under section 22B of the LSA Act, as it lacked the requisite composition and constitution. 2. A Lok Adalat has only conciliatory function and no adjudicatory powers, while a Permanent Lok Adalat can adjudicate disputes if conciliation fails. 3. The PLA could not have entered upon any form of adjudication of the dispute and could not have granted any interim relief, as the dispute was covered under section 126 of the Electricity Act, which provides a specific mechanism for addressing such disputes. 4. Even if the PLA was intended to be a Permanent Lok Adalat, it could not have decided the dispute as the quantum of the dispute exceeded Rs. 10 lacs, which is the pecuniary threshold of the jurisdiction of a Permanent Lok Adalat under section 22C of the LSA Act.
Final Decision: The impugned order of the PLA was set aside, and the respondent was granted liberty to approach the appropriate authority to seek his remedy against the demand raised by the petitioner, in accordance with law.
JUDGMENT
Anup Jairam Bhambhani, J. - The petitioner/Tata Power Delhi Distribution Limited is aggrieved by order dated 20.07.2016 made by the learned Permanent Lok Adalat in case No. EPLA-II/180/2016, whereby, while remanding the case as "unsettled" (sic) and giving opportunity to the respondent/Rampal to seek redressal of his grievance before the appropriate court or forum, the Presiding Officer has directed that the supply of electricity by the petitioner to the respondent shall not be disconnected for non-payment of misuse charges and penalties without due process of law. The petitioner is also aggrieved by the fact that in the impugned order the Presiding Officer has made certain adverse remarks against it and has directed that a copy of the order be circulated to various governmental authorities and senior officials. It is the petitioner''s contention that the impugned order has been made by the Presiding Officer without jurisdiction and/or by exercising power and jurisdiction not vested in him by law.
2. It may be mentioned at the outset that the use of the words Presiding Officer, Lok Adalat and Permanent Lok Adalat in this judgement are to be read subject to what is stated in the concluding paragraphs, for the reason that regardless of the nomenclature given to the forum in the course of the proceedings leading upto to the present petition, the nomenclature used is, at places, inaccurate and incorrect in view of what has been clarified by the Supreme Court.
Petitioner''s case :
3. The genesis of the matter is the disconnection of an electricity connection bearing CA No.60002943599 by the petitioner for alleged non-payment of about Rs. 8 lacs by the respondent towards dues for consumption of electricity. It is the petitioner''s case that in view of the demand raised by it, earlier-on the respondent filed a case before the Lok Adalat for settlement of the dues; consequent whereupon, on 03.06.2015 the matter was mutually settled between the parties and it was agreed before the Lok Adalat that the respondent would pay to the petitioner Rs.6,08,910/- by 12.06.2015 in settlement of the amounts owed. It was further agreed between the parties that upon payment of the said amount, the petitioner would restore the electricity supply to the respondent. However, it would appear that the respondent failed to pay the agreed amount, and as a result, the petitioner did not restore the electricity supply. Thereafter the respondent filed civil suit bearing No.223/2015 before the Civil Judge, Rohini Courts, New Delhi in which, vid order dated 21.07.2015, the Civil Court directed that the respondent''s electricity connection be restored subject to the respondent paying 50% of the total outstanding demand. However, yet again, the respondent failed to comply with the direction of the Civil Court and the respondent''s electricity connection was therefore not restored.
4. Now, the respondent''s electricity connection was disconnected on 26.05.2010 on account of non-payment of dues of about Rs. 8 lacs. However it is alleged that during an inspection conducted by it on 28.07.2015 the petitioner found that the respondent had unauthorisedly restored the electricity connection; by reason of which petitioner initiated proceedings under section 126 of the Electricity Act 2003 ("Electricity Act" for short) and raised upon the respondent a demand of about Rs.30 lacs on account of unauthorised use of electricity, including misuse charges and a late payment surcharge.
5. The respondent sought amicable settlement of this demand, without however challenging the bill raised; and made an application to the Delhi State Legal Services Authority (DSLSA) for settlement of the dispute. The application made was referred to, what has been called, Permanent Lok Adalat-II by way of case No.EPLA-II/180/2016 from which the present proceedings have arisen.
6. The petitioner points-out that the prayer made by the respondent in the application filed before the DSLSA was fo
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