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IN THE HIGH COURT OF JHARKHAND AT RANCHI
RAJESH SHANKAR, J.
M/s Shyam Lal Iron and Steel Company – Petitioner
Versus
Jharkhand Urja Vikas Nigam Limited – Respondent
W.P. (C) No. 3852 of 2021
Decided On : 15-06-2022
Electricity Theft - Assessment under Section 126 of the Act, 2003 - Regulations 2015 - Sections 126, 135, 154 - The court allowed the writ petition and treated the assessment order as provisional under Section 126(1) of the Act, 2003. The petitioner was given the opportunity to file objections under Section 126(3) and the final assessment order was to be passed in accordance with the law. An amount deposited by the petitioner for restoration of electrical connection was subject to the final assessment order.
Fact of the Case:
The petitioner's electrical connection was disconnected on the allegation of theft of electricity. The petitioner contested the inspection report and assessment order, arguing that the procedure established by law was not followed and the assessment was inconsistent with the MRI data.
Finding of the Court:
The court found that the assessment order suffered from procedural infirmity as the procedure prescribed under Section 126 of the Act, 2003 was not followed. The assessment order was treated as provisional, and the petitioner was given the opportunity to file objections and have a final assessment order passed.
Issues: The issues revolved around the legality of the assessment order, the procedural irregularities, and the opportunity for the petitioner to challenge the assessment.
Ratio Decidendi: The court held that the assessment order was provisional under Section 126 of the Act, 2003 and allowed the petitioner to file objections. The court emphasized the importance of following the prescribed procedure and providing the petitioner with a fair opportunity to challenge the assessment.
Final Decision: The writ petition was allowed, and the assessment order was treated as provisional under Section 126 of the Act, 2003. The petitioner was given the opportunity to file objections, and the final assessment order was to be passed in accordance with the law.
JUDGMENT :
RAJESH SHANKAR, J.
1. The present writ petition has been filed for issuance of direction upon the respondents to forthwith restore the electrical connection of the petitioner which was disconnected on 08.09.2021 on the allegation of theft of electricity. Further prayer has been made for quashing the inspection report dated 07.09.2021 on the strength of which an FIR has been lodged and huge liability has been imposed by way of loss allegedly caused to Jharkhand Bijli Vitran Nigam Limited (JBVNL) while disconnecting the electrical connection of the petitioner. The petitioner has also prayed for quashing the order of assessment as contained in letter No. 2136 dated 11.09.2021 issued by the respondent No. 4 imposing Rs. 1,27,39,421/- against the petitioner.
2. The factual background of the case, as stated in the writ petition, is that the petitioner being a partnership firm is engaged in manufacturing of MS ingots and for running its factory, has taken electrical connection from the respondents vide consumer No. 7010/HJAP184 under HTSS category. The officers of the respondent-JBVNL visited the premises of the petitioner on 12.06.2021 and checked the metering devices taking into consideration the Meter Reading Instrument (MRI) data whereupon everything was found in order. Thereafter, an inspection report dated 12.06.2021 was prepared explaining all the parameters of the meter. A team of the officers of the respondent-JBVNL again visited the premises of the petitioner on 07.09.2021 and inspected all the metering devices including main meter and check metering unit, however, they did not find any fault. All the devices installed in the premises including check meter and main metering unit were found perfect and all the seals affixed on different devices were also found intact. The respondent authorities then visited the scrapyard of the petitioner where numbers of XLPE cables purchased as scrap were lying. They took out 3 numbers of cables and presented the same as the device for committing theft of electricity. Thereafter, the inspecting team disconnected the electricity connection of the petitioner’s premises and took away the said cables and check metering unit. Subsequently, an FIR was lodged on 08.09.2021 against the petitioner alleging that the respondent-Nigam suffered loss of Rs. 1,27,39,320/-. The petitioner was however served the inspection report after 3 days.
3. Learned Sr. counsel for the petitioner submits that the inspection report was not prepared in the premises of the petitioner, rather the same was served to the petitioner after three days of the inspection. Though the report speaks about three cables, however, the officers of JBVNL deliberately did not disclose as to from where they found the said cables. In fact, the factory was facing multiple problems in continuous functioning on account of old machinery due to which the furnace used to be taken on maintenance on usual basis after 12 o’ clock at night, however, it was wrongly interpreted as theft of electrical energy by using artificial means which is absolutely false and baseless. It is also submitted that the load graph does not fully support the allegation as has been levelled by the respondents suspecting theft of electricity. The petitioner was not being supplied power through any dedicated feeder, rather it was getting power supply through 11 KV feeder wherefrom several other consumers were also getting electricity. Due to recurring loss in operation of the said factory/plant, the petitioner could not make timely payment to its workers/labourers and hence a group of labourers stopped working. Thus, it became difficult for the petitioner to run its unit in both shifts and accordingly it decided to operate its unit in one shift only from 10.07.2021. An information to that effect was also given to the respondent No. 4 vide letter dated 10.07.2021. The same situation continued for the entire month of July and the normal operation resumed from 01.08.202
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