M. KARPAGA VINAYAGAM, C.J. AND AMARESHWAR SAHAY, J.
M/s. Tata Steel Ltd.
Versus
Jharkhand State Electricity Board and Ors.
L. P. A. No. 329 of 2007
Decided on : 11 -10 -2007
Electricity Act - Interpretation of Section 56(2) - The court held that the demand for payment becomes 'first due' only when the electricity board raises bills for consumption of electrical energy, and the period of two years under Section 56(2) runs from the date of such demand.
Fact of the Case:
The appellant contested the impugned bills raised by the Jharkhand State Electricity Board, arguing that they were barred under Section 56(2) of the Electricity Act, 2003.
Finding of the Court:
The court affirmed the decision of the single Judge, holding that the demand for payment becomes 'first due' only when the electricity board raises bills for consumption of electrical energy, and the period of two years under Section 56(2) runs from the date of such demand.
Issues: Interpretation of Section 56(2) of the Electricity Act, 2003 regarding the period within which a sum due from a consumer can be recovered.
Ratio Decidendi: The period of two years under Section 56(2) of the Electricity Act, 2003 runs from the date when the electricity board raises bills against consumption of electrical energy, making specific demand from the consumer for payment.
Final Decision: The letters patent appeal was dismissed, affirming the view taken by the learned single Judge in the impugned judgment.
AMARESHWAR SAHAY, J. :- Heard Mr. Mittal, learned counsel for the appellant and Mr. Rajesh Shankar, learned counsel for the respondents.
2. The only point which has been argued and to be decided in this appeal is as to whether the impugned bills raised by the Jharkhand State Electricity Board is barred under Section 56(2) of the Electricity Act, 2003?
3. This point was raised by the appellant before the writ Court but the learned single Judge has rejected the said plea of the appellant and has answered the said question in negative.
4. Section 56 of the Electricity Act, 2003 speaks about disconnection of supply in default of payment and it reads as under :-
"56. Disconnection of supply in default of payment- (1) Where any person neglects to pay any charge for electricity or any sum other than a charge for electricity due from him to a licensee or the generating company in respect of supply, transmission or distribution or wheeling of electricity to him, the licensee or the generating company may, after giving not less than fifteen clear days' notice in writing, to such person and without prejudice to his rights to recover such charge or other sum by suit, cut off the supply of electricity and for that purpose cut or disconnect any electric supply line or other works being the property of such licensee or the generating company through which electricity may have been supplied, transmitted, distributed or wheeled and may discontinue the supply until such charge or other sum, together with any expenses incurred by him in cutting off and reconnecting the supply, are paid, but no longer :
Provided that the supply of electricity shall not be cut off if such person deposits, under protest, -
(a) an amount equal to the sum claimed from him, or
(b) the electricity charges due from him for each month calculated on the basis of average charge for electricity paid by him during the preceding six months, whichever is less, pending disposal of any dispute between him and the licensee.
(2) Notwithstanding anything contained in any other law for the time being in force, no sum due from any consumer, under this section shall be recovered after the period of two years from the date when such sum become first due unless such sum has been shown continuously as recoverable as arrear of charges for electricity supplied and the licensee shall not cut off the supply of the electricity."
5. According to Mr. Mittal, the learned single Judge has misinterpreted the provision of Sub-section 2 of Section 56 of the Electricity Act, 2003. It is submitted that as per Section 56(2) of the Electricity Act, no demand can be raised for the first time after a period of two years from the date when such amount became 'first due' and such amount due, i.e., the arrears must be shown continuously in the current bills. But in the present case the demand raised in the impugned bills are of more than two years and the same were not shown as arrears in the current bills and, therefore, the same is hit by Section 56 (2) of the Electricity Act. According to Mr. Mittal, the amount becomes "first due" on the date when the electricity energy is consumed and the consumer is liable to pay the charges for such consumption.
6. On the other hand Mr. Rajesh Shankar, learned counsel appearing for the Electricity Board, in support of the impugned judgment of the learned single Judge, has submitted that the amount "first due" becomes not from the date of consumption of the electrical energy but it becomes due only when the demand is made by raising bills for consumption of such electrical energy. In support of his submission he has relied on a decision of the single Bench of Delhi High Court in the case of "H. D. Shourie v. Municipal Corporation of Delhi and another, reported in AIR 1987 Delhi 219."
7. In the impugned judgment the learned single Judge after discussing the intent and purport of Section 56 (2) of the Electricity Act has held that the recovery of amount of the impugned bil
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