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2025 Supreme(Ker) 2357

IN THE HIGH COURT OF KERALA AT ERNAKULAM
S. MANU, J.
The Assistant Engineer, Palarivattom - Appellant
Versus
M/s. Pooja Milk Foods Private Limited - Respondent
W.P. (C) No. 25898 of 2015
Decided On : 31-07-2025

Advocates:
Advocate Appeared:
For the Appellants : P. Santhalingam, S. Sharan, P.A. Ahamed, G. Keerthivas, Riji Rajendran
For the Respondents: C.K. Karunakar, K.V. Krishnakumar, Lekshmi P. Nair, Shifna Muhammed Shukkur, Krishna Suresh, Mekha Manoj

The court ruled that a distribution licensee cannot maintain a writ petition against the decisions of its own Consumer Grievance Redressal Forum, which operates as an internal mechanism under the Electricity Act.

Headnote:(A) Electricity Act, 2003 - Section 42 - Consumer Grievance Redressal Forum (CGRF) - Writ petition challenging CGRF's decision is not maintainable as CGRF is an internal grievance mechanism of the licensee, and the licensee cannot invoke writ jurisdiction against its own forum's decisions. (Paras 20-25)

(B) Regulatory Framework - The CGRF is not an independent adjudicatory body but is maintained by the licensee, limiting the scope for judicial review of its decisions by the licensee. (Paras 15-19)

(C) Judicial Precedents - The court distinguished its position from other jurisdictions, emphasizing the unique regulatory framework in Kerala that restricts the licensee's ability to challenge CGRF decisions. (Paras 22-24)

Facts of the case:
The Assistant Engineer of KSEB challenged a CGRF order that canceled a short assessment bill, asserting that the CGRF erred in its tariff classification decision. The CGRF found the Board's assessment incorrect and ordered a refund.

Findings of Court:
The writ petition was dismissed as not maintainable, affirming that the CGRF operates within the licensee's structure and its decisions are binding.

Issues: The main issue was the maintainability of the writ petition filed by the licensee against the CGRF's order.

Ratio Decidendi: The court held that the CGRF is an internal mechanism of the licensee, and thus, the licensee cannot challenge its decisions through writ petitions.

Result: Writ petition dismissed.

Table of Content
1. factual background of the case (Para 2 , 3)
2. arguments presented by both parties (Para 5 , 6 , 7 , 8 , 9)
3. court's analysis on maintainability of writ petition (Para 10 , 11 , 12 , 13 , 15 , 16 , 17 , 18 , 20 , 21 , 22 , 24 , 25)

JUDGMENT :

S. MANU, J.

1. Assistant Engineer of Kerala State Electricity Board (KSEB) has filed this writ petition challenging an order passed in favour of the respondent by the Consumer Grievance Redressal Forum of the Board.

2. The respondent is a LT consumer bearing consumer No.14360 under Electrical Section, Palarivattom. Anti-Power Theft Squad (APTS) conducted an inspection in the premises of the respondent on 25.9.2008. It was detected that the industrial unit was using more than 20% of the total connected load. A short assessment bill for Rs.10,09,331/- was served on the respondent on 27.9.2008. Tariff was changed to LT-VIIA and fixed charges and consumption charges from 1.12.2007 was also included. The respondent company approached this Court in W.P.(C)No.29352/2008 aggrieved by the short assessment. This Court disposed of the writ petition on 7.10.2008 directing the respondent to approach the Consumer Grievance Redressal Forum (CGRF). Respondent was directed to pay a sum of Rs.2,00,000/- and impugned bill was directed to be kept in abeyance till the CGRF took a decision. Respondent complied with the direction to pay the amount. CGRF by order dated 6.1.2009 upheld the assessment made by the Board. The respondent filed appeal before the State Electricity Ombudsman. While the appeal was pending respondent informed that connected load was reduced. The Ombudsman disposed of the appeal by changing the Tariff from LT-VIIA to LT-IV. Respondent approached this Court again, aggrieved by the order of the Ombudsman. This Court by judgment dated 2.2.2015 in W.P. (C)No.27130/2009 directed the CGRF to reconsider the complaint of the respondent in the light of the judgment in Kerala State Electricity Board and Others v. M/s.KSE Limited, Dairy Division and another [2012 (1) KLJ 584:2012 SCC OnLine Ker 31551 ].

3. CGRF thereafter passed its order on 12.05.2015. The Forum cancelled the short assessment bill dated 27.9.2008. The Board was directed to re-assess the subsequent bills in commercial tariff in LT-IV. Excess amounts collected and the additional amounts remitted by the respondent including Rs.2,00,000/- paid as directed by this Court were directed to be refunded with interest at bank rate. The said order is under challenge in the instant writ petition.

4. Contentions of the petitioner are as follows:-

The power to decide tariff is vested in the State Regulatory Commission under the Electricity Act, 2003. At the time of the inspection in the premises of the respondent, the tariff order applicable then provided that if more than 20% of the load was used for chilling operation, tariff required reclassification as commercial from industrial. In the case of the respondent 43.35kW out of 118.87kW was used for chilling operation. Therefore, the re-classification and short assessment was perfectly correct. The petitioner's unit was not a production industry. The 2007 Schedule of Tariff and Terms and Conditions for Retail Supply by KSEB provided in Clause (e) under LT-IV tariff that dairy farms and milk chilling plants, with or without chilling/freezing/cold storage activity, shall be charged under the industrial category, provided the chilling/freezing/cold storage load is limited to 20% of the total connected load. If the said limit was exceeded, LT-VII(A) tariff would be applicable. Clause (e) remained applicable till it was deleted in 2010. The deletion was made effective prospectively from 21.6.2010 and it has no retrospective effect. This Court remitted the matter for reconsideration by the CGRF in W.P.(C)No.27130/2019, in the light of the judgment in Kerala State Electricity Board and Others v. M/s.KSE Limited, Dairy Division and another However, according to the petitioner, the judgment est

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