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

2021 Supreme(Online)(Guj) 447

GUJARAT HIGH COURT
A.B. Sinha, J
Dakshin Gujarat Vij Company Limited v. Land Mark Corporation and Others
Letters Patent Appeal No. 74 of 2014 | Letters Patent Appeal No. 1583 of 2019 | Letters Patent Appeal No. 1582 of 2019 | Letters Patent Appeal No. 1584 of 2019 | Special Civil Application No. 4668 of 2016 | Special Civil Application No. 4311 of 2016 | Special Civil Application No. 5229 of 2016



Advocates:
For the Appellants/Petitioners: Mr. Ravindra Shah
For the Respondents: Mr. Mihir Thakore, Ms. Lilu K. Bhaya, Ms. Sonal D. Vyas

Electric distribution companies cannot charge consumers for transformer costs as such charges violate existing regulations; statutory directives from regulatory authorities must be adhered to without exception.

Headnote:(A) Gujarat Electricity Regulatory Commission (GERC) (Licensee's Power to Recover Expenditure) Regulations, 2005 - Sections 43 and 46 - Electric Supply - The Electric Company illegally charged transformer and service line costs to a cooperative housing society despite specific directives from GERC prohibiting such recovery. (Paras 8, 10, 14, 15)

(B) Jurisdiction of Courts - The courts may not interfere with the decisions of regulatory bodies unless there is a clear error in law or procedure. (Paras 6.1, 9)

(C) Consumer Rights - Defined duties of distribution licensees to provide supply and recover specified costs only. (Paras 12, 13)

Facts of the case:
The Appellant was a cooperative housing society that sought electricity connections for its 52 residential bungalows. It challenged recovery of excessive charges, including those for transformers and service lines, illegally imposed by the Electric Company contrary to GERC regulations. (Paras 3.1, 9)

Findings of Court:
The Electric Company improperly charged for transformer costs, which were deemed part of transmission lines under applicable statutes and regulations. Refund of the improperly collected charges was ordered. (Paras 14, 15)

Issues: The principal issues involved the legality of the electricity charges imposed by the Electric Company and whether GERC's directives were being followed. (Paras 3, 15)

Ratio Decidendi: The court concluded that the Electric Company was bound by GERC regulations that clearly prohibit the charging of costs for transformers and service lines from a society categorized as domestic consumers. (Paras 12, 14)

Result: Appeals allowed; ordered refund of charged amounts.

Table of Content
1. demand and supply of electricity regulations (Para 3)
2. legal basis for cost recovery by distribution licensees (Para 6)
3. consumer classifications and obligations (Para 7)
4. regulatory authority and enforcement of electricity distribution rules (Para 9 , 10 , 11 , 12 , 13)
5. entitlement to recover charges as per gerc directives (Para 14)
6. final decision and order of the court (Para 15 , 16)

1. This Letters Patent Appeal No. 74 of 2014 is filed by the present appellant (hereinafter referred to as Electric Company in LPA No. 74 of 2014) against the judgment and order dated 22.10.2013 passed by learned Single Judge wherein, Special Civil Application preferred by the Appellant was dismissed and order passed by The Electricity Ombudsman Gujarat State in Case No. 82 of 2011 dated 9.1.2012 was challenged.

2. Whereas, Letters Patent Appeal No. 1583 of 2019, Letters Patent Appeal No. 1582 of 2019 and Letters Patent Appeal No. 1584 of 2019 are against the order passed by learned Single Judge in Special Civil Application No. 4668 of 2016; Special Civil Application No. 4311 of 2016 and Special Civil Application No. 5229 of 2016 dated 30.4.2019 respectively preferred by the respondent No. 1 with a request to quash the orders passed by the Electricity Ombudsman directing the difference of charges to the Appellant. As all these Letters Patent Appeal are based on identical facts and are raising similar questions of law, with the consent of the parties, the matters are taken up for joint hearing in this Court for the purpose of concluding decision of this group of Letters Patent Appeals.

3. The facts are extract from the lead matter i.e. Letters Patent Appeal No. 1583 of 2019.
3.1 It is the case of the Appellant that Appellant being Co - operative Housing Society registered under the provisions of the Gujarat Co - operative Societies Act, 1961 . The main object of the Society is for providing 52 residential accommodation to its members by constructing their respective bungalows. The society needed electric connection for the purpose of construction as well as for the residential bungalows. The land of the society was abutting the Town Planning Scheme where the respondent - Company electric sub station was situated and had its distribution mains and from where, the respondent No.1 - Company was required to lay the service line for supplying the electricity to the society and its members. The Appellant needed the following electricity supply for the residences of its members in the society.

3.2 As per say of the Appellant, the provision of Regulation 4.1 (i) of the GERC (Licensee's Power to Recover Expenditure) Regulations, 2005, the Appellant and its members for domestic consumers made a demand on KW basis for the aforesaid total load of 517 KW for supply of electricity from the respondent No.1 Distribution Company. Respondent - Company is duty bound to recover charges on KW basis from the Appellant in accordance with the directions dated 30.12.2010 issued by GERC and as per the schedule reflected in the communication dated 30.12.2010. As per say of the Appellant, respondent No.1 - Electric Company cannot recover the cost of transformer and service line from the Society and its members being domestic consumers. On 25.2.2013, the Appellant applied to the respondent No.1 for providing electricity supply for itself and for its 52 members being the bungalows. Respondent No.1 without any authority has collected huge amount of Rs. 16,55,665 - and Rs.40,713/- from the Appellant. The Appellant - Society made a complaint to the Consumer Grievance Redressal Forum of the respondent No.1 vide complaint No. 22/2015-16, wherein, it was prayed for a refund of the excess amount of Rs. 16,96,378/-. The Grievance Forum, ignoring the provisions of the Central Act, State Act and Regulations enacted by the GERC being the regulatory authority and the directions issued by it from time to time as well as the provisions of Supply Code, mechanically pass















































































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