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2023 Supreme(P&H) 3052

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
VINOD S. BHARDWAJ, J.
G.R. Senior Secondary School – Petitioner
Versus
Dakshin Haryana Bijli Vitran & Anr – Respondents
CWP-7925 of 2014
Decided On : 23-03-2023

Advocates Appeared:
Mr. Vijay Kumar Jindal, Senior Advocate with Mr. Pankaj Gautam, Advocate; For the Petitioner
Mr. Pardeep Singh Poonia, Advocate and Mr. Pulkit Dhanda, Advocate for the respondents No.1 to 4.

Headnote:(A) Electricity Act, 2003 - Sections 135, 152, and 154 - Quashing of demand notice for alleged theft of electricity - Court ruled that once a person is acquitted of theft charges, a utility cannot impose civil liability without proceeding through a Special Court to assess liability - Petitioner directly drew electricity without authorization, thus deemed to have committed theft. (Paras 11, 12, 14 and 17)

(B) Civil Liability - Burden on the assessing authority to follow statutory procedures before declaring civil liability - Acquittal in criminal proceedings bars unilateral imposition of financial penalties by the pricing authority. (Paras 5, 12, 20)

Facts of the case:
Petitioner, a school, faced allegations of electricity theft after inspection; following criminal proceedings led to the acquittal of the society's president, yet penalties and compounding amounts were issued by state utilities.

Findings of Court:
Court confirmed that civil liability can only be established through Special Court findings following established legal protocols.

Issues: Can a utility impose financial liabilities without a determination by the Special Court after an acquittal?

Ratio Decidendi: The court concluded that the electricity utility's civil claim lacks grounding after criminal acquittal and that the Special Court has the definitive authority for civil liabilities.

Result: Writ petition allowed; notices set aside.

Table of Content
1. petitioner seeks quashing of energy theft penalties. (Para 1 , 2)
2. respondents allege evidence of energy theft. (Para 3 , 4 , 6 , 7)
3. court considers liability post-acquittal. (Para 5 , 11)
4. special court determines civil liability. (Para 10 , 12 , 14)
5. electricity act mandates distinct assessments. (Para 13 , 15)
6. writ petition allowed, demand notice invalid. (Para 17)

JUDGMENT

Vinod S. Bhardwaj, J. (Oral)

The present petition has been filed under Articles 226/227 of the Constitution of India seeking issuance of writ in the nature of Cetiorari for quashing the checking report dated 18.03.2013 (Annexure P-2), the joint checking report dated 21.08.2013 (Annexure P-7), assessment order dated 22.08.2013 (Annexure P-8) and notice of compounding the offence of theft dated 22.08.2023 (Annexure P-9)

2. Briefly summarized, the facts of the present case are that the petitioner-G.R. Senior Secondary School, Gujrani, Bhiwani being run under the G.R. Siksha Samiti, is a consumer of the respondent-distribution licensee. The premises of the petitioner were inspected on 18.03.2013 by the respondent-distribution licensee whereupon a case of theft of energy was prima facie reported. One case bearing FIR No. 1230 dated 18.03.2013 was registered against the petitioner. Further, an assessment was done by the respondents and a penalty of Rs. 18,93,859/- was also imposed against Hawa Singh, then working President of the petitioner-society vide order dated 22.08.2013. A compounding notice was served upon the petitioner vide which the petitioner was offer to deposit a sum of Rs. 43 lacs for seeking compound of the said offence. Even though, the written statement in the present case has been filed, however, the issue is not being dealt with in detail as regards the applicability of the sale circular etc. and/or assessment as claimed by the respondents since it has undisputedly been brought before this Court that the proceedings in case bearing FIR No. 1230 dated 18.03.2013 registered at Police Station Irrigation & Power Rewari culminated in acquittal of Hawa Singh, the then President of the petitioner- Society vide judgment dated 09.07.2018 passed by the Court of Additional Sessions Judge, Bhiwani.

3. Written statement on behalf of respondents No.1 & 2 had been filed wherein they took a stand that it was a case of theft of energy. The meter was accordingly removed for checking it accuracy and the same was to be tested on 22.03.2013. The petitioner refused to sign the testing report which was eventually undertaken on 21.08.2013. He did not appear despite notice dated 05.08.2013. Meter body lock/seal was found broken and meter was found recording energy only in 04 phase and 70% below normal. Accordingly an order of assessment alongwith notice of compounding was served upon the petitioner. Other allegations on merit were denied by the respondents. Reference was made to circular issued for dealing with cases pertaining to theft of energy as well as unauthorized use of electricity and procedure for assessment in such a case. The case of the petitioner was thus not a case of suspected theft and that he is liable to compensate for the loss caused to the disconnection.

4. Counsel for the respondent does not dispute that the aforesaid judgment of acquittal has already attained finality.

5. The core question which thus arises for consideration before this Court is as to whether the respondent-distribution licensee can claim any civil liability once criminal proceedings had been initiated and resulted in an acquittal of the person who has been tried for commission of the alleged offence.

6. Learned Senior counsel appearing on behalf of the petitioner contends that respondents have no authority to demand any amount once a person has already been charged for commission of theft of energy; has faced trial and has been acquitted. He contends that determination of civil liability in a case of theft of energy can only be undertaken by the Special

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