SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1999 Supreme(Mad) 786

High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE K. NATARAJAN
V. Kaliamoorthy & Another
Versus
Assistant Divisional Engineer, (Operation and
Maintenance) Tamil Nadu Electricity Board, Vazhapadi (North) Attur Taluk, Salem District
S.A.No.1924 of 1987
Decided On : 12-08-1999

Advocates:
R. Arunagirinathan, for Appellants. V. Rengabashyam, for Respondents.

A suit challenging a penalty imposed by the Electricity Board for alleged misuse of electricity is not maintainable without exhausting the remedy provided under the terms and conditions of the contract, specifically Clause 9 of the Schedule to Terms and conditions of supply of Electricity by the Tamil Nadu Electricity Board, which provides for an initial assessment notice and an appeal process.

Headnote:

ELECTRICITY ACT - SECTION 126 - INSPECTION OF PREMISES - NOTICE - MAINTAINABILITY OF SUIT - EXHAUSTION OF REMEDIES - APPEAL TO ELECTRICITY BOARD - JURISDICTION OF CIVIL COURT - ELECTRICITY SUPPLY ACT, 1948 - SECTION 56 - TERMS AND CONDITIONS OF SUPPLY OF ELECTRICITY BY TAMIL NADU ELECTRICITY BOARD - CLAUSE 9 - INITIAL ASSESSMENT NOTICE - MAINTAINABILITY OF SUIT - EXHAUSTION OF REMEDIES - APPEAL TO ELECTRICITY BOARD - JURISDICTION OF CIVIL COURT.

Fact of the Case:

The plaintiffs filed a suit challenging a penalty imposed by the Electricity Board for alleged misuse of electricity. The Board claimed that the plaintiffs had used water pumped from a well intended for agricultural purposes for a nearby Sago Factory, which was not permitted under the Electricity Supply Act. The plaintiffs contended that no notice was issued by the Board Officials before conducting the inspection and that the suit was maintainable.

Finding of the Court:

The first appellate court reversed the trial court's judgment and dismissed the suit, holding that the Electricity Board had proved that the plaintiffs had illegally abstracted energy and used water intended for agricultural purposes for the Sago Factory. The court also held that the plaintiffs' objection regarding res judicata was untenable.

Issues: 1. Whether notice in writing ought to have been issued by the Electricity Board Officials before conducting an inspection regarding the illegal abstraction of energy and using the water intended for agricultural purposes for the Sago Factory? 2. Whether the suit was maintainable without exhausting the remedy provided under the terms and conditions of the contract, specifically Clause 9 of the Schedule to Terms and conditions of supply of Electricity by the Tamil Nadu Electricity Board?

Ratio Decidendi: 1. The court held that the Electricity Act, 1948, Section 126, does not contemplate any statutory notice to be issued prior to the inspection and only requires mere information to the consumer at the time of inspection. The court also held that the second inspection was made in the presence of an independent witness, the Revenue Inspector, and was therefore proper and not illegal or against the rules. 2. The court held that the plaintiffs ought to have exhausted the remedy provided under Clause 9 of the Terms and Conditions of supply of Electricity by the Tamil Nadu Electricity Board, which provides for an initial assessment notice and an appeal process, before approaching the civil court for a remedy of declaration and permanent injunction. The court relied on the Supreme Court's decision in Punjab State Electricity Board and another v. Ashwani Kumar, which held that civil courts should not entertain suits where the fundamental fairness of procedure has been prescribed in the rules and is being followed, and where the party has not availed of the remedy provided under the relevant statutes and regulations.

Final Decision: The second appeal was dismissed, and the judgment and decree of the first appellate court were confirmed. There was no order as to costs.

Judgment :

The second appeal has been directed against the judgment and decree in A.S.No.30 of 1986 dated 9. 1987 on the file of the Subordinate Judge, Salem, reversing the judgment and decree of the learned District Munsif, Attur in O.S.No.1 of 1983 dated 12. 1986.

2. The plaintiffs are the appellants. The respondents Electricity Board issued notice to the plaintiffs to pay certain amount which they calculated on the ground that the electricity in respect of service connection 420 for agricultural purposes has been misused and the water pumped from the well had been taken to the Sago Factory nearby which is not permitted under the Electricity Supply Act and therefore the plaintiffs have to pay the penalty calculated by the Board. The suit was instituted questioning the above penalty on the ground that no notice has been issued by the Electricity Board Officials before making the inspection. The Electricity Board in the written statement contended that inspection has been made as per the procedure. The maintainability of the suit as framed has also been questioned by the Electricity Board.

.3. On the pleadings of the parties the learned District Munsif, Attur, formulated the necessary issues. On the evidence adduced by the parties both oral and documentary, the learned District Munsif, reached to the conclusion that the suit as framed is maintainable and ultimately decreed the suit as prayed for. Aggrieved by the said judgment and decree, the Electricity Board preferred A.S.No.30 of 1986 on the file of Principal Subordinate Judge, Salem. The first appellate Judge, on an reappraisal of the evidence, reached to the conclusion that the trial court has committed a grave error in rejection the evidence adduced on behalf of the Electricity Board. In particular, the first appellate Judge found that the Electricity Board has proved that through underground pipes water has been taken to the sago Factory from the well intended for agricultural purposes. The objection raised by the plaintiffs in the first Appellate court regarding res judicata has also been held to be untenable. Ultimately. the learned first appellate Judge by his judgment dated 9. 1987 allowed the appeal, reversed the judgment and decree of the trial court and dismissed the suit, against which the present second appeal has been preferred.

4. Thesubstantial question that was submitted by the learned counsel for the appellants is that notice in writing ought to have been issued by the Electricity Board Officials before conducting an inspection regarding the illegal abstraction of the energy and using the water intended for agricultural purposes for the Sago Factory.

5. Reliance was placed by the learned counsel for the appellants on a decision of the Karnataka High Court in M/s.Southern Steelmet and Alloys Ltd., Bangalore v. Karnataka Electricity Board, Bangalore and another M/s.Southern Steelmet and Alloys Ltd., Bangalore v. Karnataka Electricity Board, Bangalore and another M/s.Southern Steelmet and Alloys Ltd., Bangalore v. Karnataka Electricity Board, Bangalore and another A.I.R. 1991 Karn. 267. In the said judgment at the end of paragraph 9 the learned Judge has observed that, “in the absence of notice to the consumer or its representative, no credibility can be given to the inspection conducted by the Electricity Board Officials of the Electricity Board to proceed with the inspection if the consumer or his representative does not turn up to witness the inspection.

.6. Per contra, the learned counsel for the respondents Electricity Board invited the attention of this Court to the decision of this Court in Tamil Nadu Electricity Board v. D.K.Kanniappa Mudaliar Tamil Nadu Electricity Board v. D.K.Kanniappa Mudaliar Tamil Nadu Electricity Board v. D.K.Kanniappa Mudaliar 1984 L.W. (Crl.) 239. Dealing with the aspect of notice the learned Judge has made in the following observation in paragraph 6:

.“On a careful consideration of the abovesaid section, I find that it









Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top