This Second Appeal is filed by a consumer of electricity . The appellant herein has a service connection No.220 in Puduppai village; he is running a rice mill, by name Sri Krishna Rice Mill. On 14.5.1987, there was an inspection by the Department. It was informed that in a three phase connection, one phase was not functioning. Therefore, the Department presumed that there was a theft of electricity. Hence, they calculated the loss sustained to the department as per the formula given under the Terms and Conditions of the supply of Electricity and served notice of demand for a sum of Rs.11,623.25. The said amount was subsequently paid by the appellant herein.

2. Thereafter, the appellant herein filed a suit for declaration that he need not pay the amount demanded by the Department. The trial court accepted the case and granted a decree that the consumer need not pay the amount as claimed by the department. The trial court decreed the suit on the ground that the inspection was held on 14.5.1987 without serving notice. But, the notice of demand was served only after 15 months, i.e., on 23.9.1988.

3. On appeal, the lower appellate court reversed the findings of the trial cou