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2025 Supreme(Gau) 2158

2025 GAU(AS) 426
THE GAUHATI HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
DEVASHIS BARUAH, J.
UCO Bank - Appellant
Versus
Assam Power Distribution Company Ltd. - Respondent
WP(C) No. 2600 Of 2019
Decided On : 10-01-2025
Advocate Appeared :
For the Appellant : Mr. M. Sharma, Advocate
For the Respondent : Mr. B. Choudhury, SC, APDCL

The obligation to pay electricity charges arises upon the issuance of a bill, as clarified under Section 56 of the Electricity Act, allowing supplementary demands beyond the usual limitation period without affecting disconnection rights.

Headnote:(A) Electricity Act, 2013 - Section 56 - Dispute regarding billing amounting to Rs. 5,82,030/- for alleged excessive consumption - Respondent admitted the meter was healthy but claimed accumulated unbilled units led to high consumption charge. Court noted that electricity charges become first due upon issuance of a bill, regardless of when consumption occurred. The bill issued on 12.01.2019 therefore triggers the obligation to pay. (Paras 3, 6, 13)

(B) Liability to pay arises only when the licensee quantifies the charges and issues a bill. Section 56(2) does not preclude raising supplementary demands after the expiry of the limitation period, nor does it grant the right to disconnect for non-payment post-period. (Paras 12, 13)

Facts of the case:
The petitioner challenged a substantial electricity bill based on unreasonably high consumption figures, which the respondent attributed to unbilled consumption accumulating over previous months.

Findings of Court:
The petitioner was given 6 months to liquidate dues as immediate disconnection would cause hardship.

Issues: Determination of when the obligation to pay arises and applicability of Section 56 (whether limits on disconnection apply to supplementary demands).

Ratio Decidendi: The court emphasized that billing and corresponding consumer obligations arise upon issuance of a bill, and the precedent clarifies rights concerning supplementary demands and disconnection limitations.

Result: Writ petition dismissed but six months granted to settle dues.

Table of Content
1. dispute arises over electricity bill discrepancy. (Para 2 , 8 , 9)
2. petitioner argues meter reading and section 56 relevance. (Para 3 , 4 , 6)
3. court notes investigation findings and billing errors. (Para 10 , 11)
4. obligation to pay arises upon bill issuance. (Para 12 , 13)
5. court concludes with timeline for payment. (Para 14 , 15 , 16)

JUDGMENT AND ORDER :

DEVASHIS BARUAH, J.

Heard Mr. M. Sharma, the learned counsel appearing on behalf of the petitioner. Mr. B. Choudhury, the learned Standing Counsel appears on behalf of the Respondent APDCL.

2. The petitioner herein has invoked the extraordinary jurisdiction of this Court challenging the bill dated 14.03.2019 of an amount of Rs. 5,82,030/- (Rupees Five Lakh Eighty Two Thousand Thirty) as well as the notice dated 04.04.2019. The specific case of the petitioner in the instant writ petition is that all along the bills which have been raised by the Respondent APDCL would show that the maximum consumption of units of the petitioner in a month was 2286. However, for the bill period of 31.10.2018 to 31.12.2018, the unit consumption shown was 61238 and on the basis thereof, a bill was generated of an amount of Rs. 5,34,015/- (Rupees Five Lakh Thirty Four Thousand Fifteen).

3. Mr. M. Sharma, the learned counsel appearing on behalf of the petitioner submitted that pursuant to the filing of the instant writ petition the affidavit-in- opposition had been filed wherein the Respondent Authorities have categorically admitted that the meter in question was healthy, and as such, the consumption of the units as have been mentioned of 61238 could not have been there. The learned counsel further submitted that even from the document enclosed as Annexure-2 to the affidavit-in-opposition, it would be seen that the units said to be consumed i.e. 61238 units is for a period of 55 months which is contrary to Section 56 of the Electricity Act, 2013.

4. Per contra Mr. B. Choudhury, the learned Standing Counsel appearing on behalf the Respondent APDCL submitted that there was nothing wrong with the meter. He submitted that upon investigation being carried out by the Office of the Jalukbari Electrical Sub-Division along with the T&C division Wing, a CMRI or actual billing report in the meter in reference for the actual consumption of the meter for the last 5 (five) months was recorded. He further submitted that after thorough checking and examination of the records it was found that a meter reading on 01.10.2018 was recorded as 150119.90 KWH whereas in the energy bill it was shown only 91894 KWH.

5. Mr. B. Choudhury, the learned Standing Counsel appearing on behalf of the Respondent APDCL submitted that the consumer was not billed on actual meter consumption and it was done due to either oversight or collection of improper readings by the meter reader. The difference of the consumption of 61238 units have been accumulated and no bill was raised due to non-recording of the actual consumption of units for the previous years and accordingly the Sub Divisionol Engineer, Jalukbari Electrical Sub-Division vide letter dated 29.03.2019 informed the Chief Manager, UCO Bank, Maligaon the total difference of the units which was unbilled due to recording of wrong consumption units shown in the energy bill.

6. As regards the submission pertaining to the application of Section 56 of the Electricity Act 2013, Mr. B. Choudhury, the learned Standing Counsel for the Respondent APDCL has submitted that the liability to pay arises on the consumption of the electricity. He submitted that the obligation to pay would arise when the bill is issued by the licensee company quantifying the charges to be paid. The learned Standing Counsel therefore submitted that the bill dated 12.01.2019 which have been impugned in the instant proceeding was issued by the APDCL Authorities quantifying the charges to be paid. The learned Standing Counsel therefore submitted that the electricity charges would therefore become first d

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