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2023 Supreme(P&H) 2526

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
G.S. SANDHAWALIA, HARPREET KAUR JEEWAN, JJ.
Bharat Sanchar Nigam Ltd. – Appellant
Versus
Punjab State Power Corporation Ltd. & Ors. – Respondents
LPA NO. 2304 of 2017 (O&M)
Decided On : 22-02-2023

Advocates Appeared:
Mr. Anil Rathee, Advocate; For the Appellant
Mr. Divansh Khanna, Advocate, for Mr. Vaibhav Narang, Advocate, for Respondent Nos. 1 to 4.

Headnote:(A) Electricity Act, 2003 - Section 56(2) - Legal limitation on recovery of electricity dues - Demand raised by the Corporation exceeding the two-year limit set by the Act was deemed invalid - Court affirmed that no coercive measures for recovery beyond limitations shall apply - Court ruled that liability under the old Act cannot be enforced after the new Act's limitations. (Paras 8, 14, 15)

(B) Judicial Decisions - Limitation is procedural law, affecting enforcement of liabilities under energy supply - The limitation period initiated upon the first due charge, restricting further recovery methods as outlined by judicial precedent. (Paras 10, 12)

Facts of the case:
The appellant contended that the demand issued by the Corporation for arrears was unlawful, arguing it fell outside the limitation period stipulated in the Electricity Act. Inspections confirmed the disputed electricity consumption and the validity of raised demands. Previous civil suits were also noted, highlighting similar issues relating to the demand validity.

Findings of Court:
The Court determined that the Corporation could not enforce demands beyond the statutory two-year limitation, requiring valid grounds within that timeframe for any action against the appellant.

Issues: The principal issue was whether the Corporation could recover amounts due from the period preceding the statutory limit of two years as contentious per the Electricity Act.

Ratio Decidendi: The court concluded that the demand issued was barred by limitation under Section 56(2). The old Act's liabilities could not be claimed beyond the defined period post-implementation of the new Act, confirming judicial precedence that restricted the rights of power supply entities to disconnect services for unpaid dues post-limitation.

Result: The appeal was granted, quashing the impugned decision to enforce recovery beyond the limitation period.

Table of Content
1. factual background of electricity supply dispute. (Para 1 , 2 , 3 , 4 , 5 , 6)
2. introduction of legal arguments regarding limitation. (Para 7)
3. court’s analysis of limitation period and recovery. (Para 8 , 10 , 12 , 14)
4. ratio decidendi on enforcement of claims under the electricity act. (Para 9 , 11 , 13)
5. final decision on permissible recovery for the disputed period. (Para 15 , 16)

JUDGMENT

G.S. Sandhawalia, J. - Consideration in the present Letters Patent Appeal, filed by the appellant-writ petitioner, is to the order dated 05.09.2017 of the Learned Single Judge passed in CWP-1637-2015 titled Bharat Sanchar Nigam Ltd. v. Punjab State Power Corporation Ltd. & others, wherein the writ petition was dismissed.

2. The learned Single Judge crystallized the controversy to the extent that the connection was installed in the premises of the appellant on 17.10.2002 and was checked on 17.06.2005. During the period of 32 months, total consumption was 412410 units and after the CT/PT which had been changed, the consumption had arisen to 644792 units in 32 months and thus, the Corporation was justified in coming to the conclusion that one of the phases was not contributing and therefore, it had to pay for the energy from the date CT/PT meter was installed.

3. A perusal of the paper-book would go on to show that vide the communication dated 09.06.2004 (Annexure P-1) the appellant had brought to the notice of the Corporation that there was sparking in one phase and the workers of the Corporation were not able to rectify the sparking and due to faulty contact they were not getting stable voltage for the smooth running of the Exchange and damage had been caused on 17.06.2005 and the power supply to the Telephone Exchange had been disrupted. Resultantly, a demand of Rs.8,90,394/- was raised on 07.11.2005 (Annexure P-3) on the ground that the checking which was done on 17.06.2005 and it was found that its Red Phase related CT was torn and that it had not been contributing from 17.10.2002. The same had been objected to on 09.11.2005 (Annexure P-4) and dispute was sought to be referred to the Disputes Settlement Committee.

4. Initially, a suit was filed on 16.02.2006 seeking injunction from disconnecting the electricity supply and seeking a declaration that the demand raised on 07.11.2005 was wrong. The Civil Court noticed that the inspection was not done in the presence of the officials of the appellant and they were right for making the payments in 2 equal instalments also. However, the injunction was declined on the ground that they could go to the Disputes Settlement Committee and the suit was barred under section 41(h) of the SPECIFIC RELIEF ACT , 1963. The same was dismissed on 23.05.2012 (Annexure P-7) and the appeal was dismissed on 31.07.2013 (Annexure P-8) by the Lower Appellate Court, Ludhiana by noticing that part payment had been deposited. Regular Second Appeal No.4940 of 2013 was partly allowed on 28.01.2014 (Annexure P-9) with direction to withdraw the appeal as well as the civil suit and to approach the authority constituted under the ELECTRICITY ACT , 2003 by noting that 50% of the amount to the tune of Rs.4,45,197/- had already been paid on 07.03.2006.

5. The Zonal Redressal Grievance Committee noticed that after the change of CT/PT the consumption for 32 months had arisen to 644792 units and the consumption 412410 unit as Red Phase is taken, then the average comes to 61861 units and held that the record was in order and the disputed amount was payable. Resultantly, the bill was raised for remaining amount of Rs.4,45,197/- and interest was also levied from 07.03.2006 onwards to 15.05.2014. Eventually, the Consumer Grievances Redressal Forum of the Corporation also came to the conclusion that there was 1/3rd less consumption and the R-phase current in DDL was regularly showing as 'zero' and therefore, upheld the demand on 22.07.2014 (Annexure P-15).

6. Appellant met no success before the Ombudsman on 11.1

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