IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT JAMMU
RAJNESH OSWAL, J.
M/s. Pee Ell alloys Pvt. Ltd., Th. Its Managing Director Rajesh Trehan, S/o. Late Sh. P. L. Saraf – Appellant
Versus
Power Distribution Corporation Ltd., Th. its Managing Director Corporate Officer and Ors. – Respondents
WP(C) No. 2050 of 2021
Decided On : 17-05-2024
Electricity Act - Quashing of Bills - Section 50 of the J&K Electricity Act - 8.7 of the Jammu and Kashmir State Electricity Supply Code, 2011 - 8.11 of the Code
Fact of the Case:
The petitioner sought quashing of bills and the benefit of amnesty scheme for power arrears. The respondents claimed outstanding amount and levied fixed demand charges.
Finding of the Court:
The court found that the respondents did not issue the required notice before disconnecting power. The agreement between the petitioner and respondents for power supply was deemed terminated after 180 days of disconnection. The bills issued were not in line with the Electricity Act and State Electricity Supply Code.
Issues: Quashing of bills, Benefit of amnesty scheme, Compliance with Electricity Act and State Electricity Supply Code
Ratio Decidendi: The court held that the respondents failed to follow the notice requirement before disconnecting power and charged the petitioner beyond the period allowed after disconnection. The bills issued were not in compliance with the relevant legal provisions.
Final Decision: The court quashed the bills and directed the respondents to calculate and intimate the petitioner the total amount payable, including arrears, within 30 days. The petitioner was granted the benefit of the amnesty scheme if the amount was paid within the specified period.
JUDGMENT :
1. The petitioner-company was sanctioned 935 KW load by the respondent for its industrial unit, which was closed in the month of March, 2013. Till March, 2013, the petitioner had arrears of electricity for an amount of Rs. 76,84,561/-. It is stated by the petitioner that the power connection of the petitioner was also disconnected by the respondents somewhere in the month March, 2013, which is duly substantiated by the communication dated 09.03.2018 of the respondent No.2 to the petitioner pursuant to the application submitted by the petitioner to the respondent No. 2. Further as per communication dated 09.03.2018, an amount of Rs. 3,48,15,624/- was outstanding in the name of petitioner as arrears till ending January, 2018. While the petitioner continued to be in arrears, the Government of J&K issued Govt. Order No. 273-FD of 2018 dated 05.06.2018 by virtue of which sanction was accorded to waiver of 100 percent of interest and penalty on all the power arrears as on 31.12.2017 owed to the Govt. by the industrialists/hoteliers and tourist resort owners, registered with the department of Industries and Commerce, J&K/Department of Tourism, J&K respectively provided that the outstanding payment of power dues as on 31.03.2018 was made in a maximum of three equal instalments by or before 30.09.2018. The petitioner in order to avail the benefit of amnesty scheme as mentioned above, floated by the Govt. by virtue of communication dated 06.07.2018 intimated the respondent No. 2 of its willingness to avail the benefit under the amnesty scheme and also requested the respondent No. 2 to communicate the total arrears payable under the scheme to the petitioner. The said communication was received by the respondent No. 2 on 06.09.2018. Thereafter vide another Govt. Order No. 254-PDD of 2018 dated 24.12.2018, the Finance Department extended the benefit of Govt. Order No. 273-FD of 2018 dated 05.06.2018 till 27 January 2019 with the modification that the outstanding dues as on 31.03.2018 shall be paid in one instalment instead of three instalments. Thereafter, the petitioner vide representation dated 16.03.2019 requested the respondents to extend the last date for availing the benefit of Govt. Order dated 05.06.2018 as the respondents had not intimated the petitioner the dues payable by him, in response to its earlier communication dated 06.07.2018. Thereafter, when the said representation evoked no response from the respondents, the petitioner sent a legal notice dated 27.01.2021 to the respondent No. 2 to convey the arrears of power bill to the petitioner within a period of 15 days, so that the petitioner could deposit the same. In response to the legal notice dated 27.01.2021, the respondent No. 3 informed the respondent No. 2 that as the amnesty scheme was not in vogue, therefore, the benefit of said scheme could not be extended to the petitioner and the outstanding liability of the petitioner was Rs. 5,74,24,642/-. The petitioner was accordingly intimated by the respondent No. 2.
2. By placing these facts before this Court, the petitioner has sought quashing of the bills dated 09.12.2020, 09.01.2021, 08.02.2021, 08.03.2021 and 11.07.2021 inasmuch as the same are illegal, arbitrary against the provisions contained in the Electricity Act, Rules as well as Regulations framed thereunder and has also sought indulgence of this Court for directing the respondents to grant benefit of amnesty scheme for Industrial, Hoteliers, Tourist Resort owners, Small Scale Industries by waiving off interest, penalty and surcharge on the power bills to the petitioner and for further directing the respondents to calculate the arrears to be paid by the petitioner till March 2013 after granting benefit of amnesty scheme.
3. The respondents have filed the response stating therein that as per available records of the Sub-division, the unit of the petitioner was closed in the month of March 2013 and zero units bills have been charged to the unit holder aft
The court emphasized the importance of complying with the notice requirement before disconnecting power and highlighted the limitations on charging the petitioner after the termination of the power s....
Supplementary bills can be raised for mistakes, but disconnection for non-payment after two years is prohibited under Section 56(2) of the Electricity Act, 2003.
A licensee cannot exercise the power of electricity disconnection for the recovery of arrears that are more than two years old, unless such sums were continuously shown as recoverable in previous bil....
An auction purchaser of property is liable for unpaid electricity dues under statutory regulations, despite claims of their inapplicability, and compliance with amnesty scheme terms is mandatory for ....
The main legal point established in the judgment is that the Electricity Act imposes a statutory duty on the respondents to provide electricity connection to the petitioner within a specified period,....
The limitation period of two years under Section 56(2) of the Electricity Act, 2003, for recovery of electricity dues commences from the date when the electricity charges became "first due." If any d....
The Electricity Board must adhere to statutory notice requirements before disconnection and cannot recover charges post-disconnection without such compliance.
The court established that an electricity company can issue revised bills for bona fide mistakes in billing, reinforcing the consumer's obligation to pay based on accurate meter readings.
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