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2019 Supreme(Online)(Guj) 7274

HIGH COURT OF GUJARAT
BHARGAV D. KARIA, J
DAKSHIN GUJARAT VIJ COMPANY LIMITED – Appellant
Versus
KARSHANBHAI I PATEL – Respondent
R/SPECIAL CIVIL APPLICATION NO. 7351 of 2016 | R/SPECIAL CIVIL APPLICATION NO. 8421 of 2016 | R/SPECIAL CIVIL APPLICATION NO. 8422 of 2016



Advocates:
For the Appellants/Petitioners: MR MAULIK NANAVATI for NANAVATI AND CO.
MS LILU K BHAYA for the Petitioner(s) No. 1
For the Respondents:MR SOAHAM JOSHI, AGP for the Respondent(s) No. 2, MS SONAL D VYAS for the Respondent(s) No. 3

A distribution company must reliably assess unauthorized electricity use based on specific legal provisions rather than irrelevant code clauses.

Headnote:(A) Electricity Act, 2003 - Section 126 - Challenges to assessment for unauthorized use of electricity - Petitioner contested final assessments quashed by Appellate Authority for not properly assessing unauthorized use and party followed proper procedure - The Appellate Authority wrongly adhered to irrelevant clauses of Supply Code. (Paras 5, 10, 14, 15)

(B) Unauthorized use - Definition according to Section 126(b) of the Electricity Act emphasizes usage outside authorized parameters - Inspections validated the presence of unauthorized connections, thus justification for provisional assessment upheld. (Paras 11, 12)

Facts of the case:
Petitioner filed an application under the Electricity Act contesting an order from the Appellate Authority that found no unauthorized use based on ownership; the consumer had connections crossing into adjoining plots without proper agreements.

Findings of Court:
The court emphasized the need for proper adherence to the laws governing unauthorized use and remanded the case for reassessment based on its rulings.

Issues: The main issue was the definition of unauthorized use of electricity and the legality of the assessments made under the legislative parameters governing electricity supply.

Ratio Decidendi: The court clarified that unauthorized use directly conflicted with supply agreements. The definitions within the Act necessitate strict adherence, and the appellate authority’s reliance on unrelated clauses of the Supply Code constituted legal error.

Result: All petitions allowed, orders quashed, matters remanded.

Table of Content
1. context of electricity consumption and connected violations. (Para 5)
2. arguments against the unauthorized use interpretations. (Para 8)
3. court's emphasis on required standards for electricity assessments. (Para 10 , 11 , 12)
4. decision to quash previous orders and remand for reassessment. (Para 15 , 16)

JUDGEMENT

1. Rule. Learned Assistant Government Pleader Mr. Soaham Joshi waives service of notice of rule on behalf of respondent no.2 and learned advocate Ms. Sonal Vyas waives service of notice of rule on behalf of respondent no.3.

2. Having regard to the controversy involved in the present case which lies in a very narrow compass, with the consent of the learned advocates for the respective parties, the matter is taken up for final hearing.

3. By these petitions under Articles 226 and 227 of the Constitution of India, the petitioner – Dakshin Gujarat Vij Company Limited has challenged order dated 31st July, 2015 passed by the Electrical Inspector and Appellate Authority, Surat in Appeal Nos. 14 of 2012­2013, 15 of 2012­2013 and 13/2012­2013 in the respective Special Civil Applications whereby the Appellate Authority has quashed and set aside the final assessments made by the Assessing Officer of the petitioner distribution company for unauthorised use of electricity by the consumer under section 126 of the Electricity Act, 2003 (“the Act” for short).

4. Since the issue involved in all these petitions is common, they have been heard analogously and are being disposed of by this common judgment.

5. For the sake of convenience, facts are recorded from Special Civil Application No.7351/2016 considering it as a lead case.

5.1 Respondent no.1 is an industrial consumer of the petitioner company having IT consumer No.12306/06757/­. The consumer had applied for industrial use of electricity connection and was granted electricity connection of NRGP category on 14th August, 1998 with contracted load of 15KW on Plot No. 439/2016 at GIDC, Sachin.

5.2 On 29th August, 2012, inspection of the premises of the consumer was carried out by I/C squad of the petitioner company. It was noticed by the Assessing Officer and other members of the squad that the consumer was supplying electricity in adjoining premises whereby a total of 11 KW load was found connected in the connection of the consumer and power was drawn in the premises of plot no. 430/9 running in the name of Color Trendz Private Limited and registered independently with the petitioner company as a consumer with Consumer No.

12306/06696/5. Being satisfied that the consumer had been indulging in unauthorised use of electricity, the Assessing Officer drew up a checking sheet dated 29th August, 2012 in presence of the consumer and provisionally assessed the electricity charges payable by the consumer. The Assessing Officer provisionally determined amount of Rs. 2,78,496.87 as being payable for unauthorised use of electricity found to be connected outside the power boundary area.

5.3 The said order of provisional assessment was duly served upon the consumer and he was informed to file objections within a period of seven days. The consumer filed objections on 2nd December, 2012 inter­alia contending that the consumed energy was duly recorded in the meter installed and payment for such consumption was duly being made. It was further stated that the request for shifting the connection had been made to the company and the address in the bills regularly issued by the company mentioned the premises as plot no. 439 and therefore, there was no unauthorised use of electricity inasmuch as the power was being used within the precincts of plot no. 439.

5.4 The Authorised Officer after consid








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