The procedure for assessing charges for unauthorized use of electricity under Section 126 of the Electricity Act, 2003, including provisional assessment and the right to file objections, is a mandatory statutory requirement that must be strictly followed before imposing a penalty.

ORDER

10.04.2026

01. Mr. Nisar Ahmad Bhat, learned counsel appearing on behalf of the petitioner at the very outset has drawn the attention of the Court to Section 126 of the Electricity Act, 2003, a perusal whereof reveals that if on an inspection of any place or premises or after inspection of the equipments, gadgets, machines, devices found connected or used, or after inspection of the records maintained by any person, the Assessing Officer comes to the conclusion that such person is indulging in unauthorized use of electricity, he shall provisionally access to the best of his judgment, the electricity charges payable by such person or by any person benefitted by such use.

02. Learned counsel for the petitioner further submits that subsection (2) of Section 126 of the aforesaid Act specifically provides that the order of provisional assessment shall be served upon the person in occupation, possession or in charge of the place or premises in such manner as may be prescribed and the said person on whom the provisional assessment is issued is also entitled to file objections in conformity with subsection (3) of Section 126 of the aforesaid Act.

03. Mr. Nisar Ahmad Bhat, learned counsel appearing on behalf of the petitioner further submits that a complete mechanism has been provided under Section 126 of the aforesaid Act which provides that the Assessing Officer has to provisionally assess the electricity charges payable by such person which is required to be served upon the person in occupation, possession or in charge of the place or premises in such a manner as may be prescribed by giving liberty to such person to file objections and giving a reasonable opportunity of hearing to such person before passing the final order of assessment within (30) days from the date of service of such provisional assessment of electricity charges payable by such person, so that any person served with the order of provisional assessment may accept such assessment and deposit the assessed amount with the licensee in conformity with subsection (4) of Section 126 of the aforesaid Act within seven days of service of such provisional assessment order upon him.

04. The learned counsel for the petitioner further submits that the entire procedure has been flouted by the respondents with impunity and instead order impugned dated 28.02.2026 has been issued by the first appellate authority by which the petitioner has been called upon to pay the amount of Rs. 5,36,528/- without the amount being provisionally assessed by the competent authority and without providing an opportunity of being heard to the petitioner in consonance with the procedure envisaged under Section 126 of the Electricity Act, 2003.

05. Thus, whatever was required as per the statutory mandate has not been followed and instead a penalty has been imposed by the respondents which is in flagrant violation of the procedure envisaged under Section 126 of the Electricity Act, 2003.

06. Heard learned counsel for the petitioner at length and perused the record.

07. Prima facie I am in agreement with what has been argued by Mr. Nisar Ahmad Bhat, learned counsel appearing on behalf of the petitioner and a case for indulgence is made.

08. Issue notice to the respondents.

09. Notice in CM No. 1914/2026 as well.

10. In the meantime, subject to objections from the other side and till next date of hearing before the Bench, there shall be a stay of the order impugned dated 28.02.2026.

11. List on 30th May, 2026.