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2008 Supreme(Online)(Jhk) 5

JHARKHAND HIGH COURT
M. Karpaga Vinayagam, CJ
Tata Steel Ltd.(M/s.) v. Jharkhand State Electricity Board and Others
L. P. A. No. 329 of 2007



Advocates:
For the Appellants/Petitioners: Mr. Mittal
For the Respondents: Mr. Rajesh Shankar

Dues under Section 56(2) of the Electricity Act, 2003 commence from the billing demand, not consumption.

Headnote:The judgment discusses Section 56(2) of the Electricity Act, 2003 about recovery of dues and the criteria for when sums become recoverable. It analyzes the matter of liability for payment of electricity consumed and clarifies that dues accrue upon billing notification as opposed to consumption. The Court concluded that the two-year period for recovery under this section commences from the demand date, affirming the learned single Judge's ruling.

Table of Content
1. recovery of dues is subject to two-year limitation. (Para 4 , 5)
2. demand gives rise to liability for payment. (Para 6 , 7)
3. dues become first due upon specific demand for payment. (Para 8 , 9)
4. appeal dismissed based on findings. (Para 10)

1. Heard Mr. Mittal, learned counsel for the appellant and Mr. Rajesh Shankar, learned counsel for the respondents.

2. The only point which has been argued and to be decided in this appeal is as to whether the impugned bills raised by the Jharkhand State Electricity Board is barred under S.56(2) of the Electricity Act, 2003 ?

3. This point was raised by the appellant before the writ Court but the learned single Judge has rejected the said plea of the appellant and has answered the said question in negative.

4. S.56 of the Electricity Act, 2003 speaks about disconnection of supply in default of payment and it reads as under : -
"56. Disconnection of supply in default of payment - (1) Where any person neglects to pay any charge for electricity or any sum other than a charge for electricity due from him to a licensee or the generating company in respect of supply, transmission or distribution or wheeling of electricity to him, the licensee or the generating company may, after giving not less than fifteen clear days' notice in writing, to such person and without prejudice to his rights to recover such charge or other sum by suit, cut off the supply of electricity and for that purpose cut or disconnect any electric supply line or other works being the property of such licensee or the generating company through which electricity may have been supplied, transmitted, distributed or wheeled and may discontinue the supply until such charge or other sum, together with any expenses incurred by him in cutting off and reconnecting the supply, are paid, but no longer :
Provided that the supply of electricity shall not be cut off if such person deposits, under protest, -
(a) an amount equal to the sum claimed from him, or
(b) the electricity charges due from him for each month calculated on the basis of average charge for electricity paid by him during the preceding six months, whichever is less, pending disposal of any dispute between him and the licensee.
(2) Notwithstanding anything contained in any other law for the time being in force, no sum due from any consumer, under this section shall be recovered after the period of two years from the date when such sum become first due unless such sum has been shown continuously as recoverable as arrear of charges for electricity supplied and the licensee shall not cut off the supply of the electricity."

5. According to Mr. Mittal, the learned single Judge has misinterpreted the provision of Sub-S.2 of S.56 of the Electricity Act, 2003 . It is submitted that as per S.56(2) of the Electricity Act, no demand can be raised for the first time after a period of two years from the date when such amount became 'first due' and such amount due, i.e., the arrears must be shown continuously in the current bills. But in the present case the demand raised in the impugned bills are of more than two years and the same were not shown as arrears in the current bills and, therefore, the same is hit by S.56 (2) of the Electricity Act. According to Mr. Mittal, the amount becomes "first due" on the date when the electricity energy is consumed and the consumer is liable to pay the charges for such consumption.

6. On the other hand Mr. Rajesh Shankar, learned counsel appearing for the Electricity Board, in support of the impugned judgment of the learned single Judge, has submitted that the amount "first due" becomes not from the date of consumption of the electrical energy but it becomes due only when the demand is made by raising bills for consumption of such electrical energy. In support of his submission he has relied on a decision of the single Bench of Delhi High Court in the case of " H. D. Shourie v. Municipal Corporation of Delhi and another , reported in AIR







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