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2024 Supreme(Online)(TEL) 23465

HIGH COURT OF TELANGANA
SUREPALLI NANDA, J
P.Ramakrishnaiah – Appellant
Versus
The Assistant Divisional Engineer Operations – Respondent
WP/36870/2012



A provisional assessment for energy theft cannot be enforced without a final assessment; matters of civil liability should be referred to a Special Court under the Electricity Act.

Headnote:(A) Electricity Act, 2003 - Section 135 and Section 154(5) - Provisional assessment of energy theft - The petitioner challenged the inclusion of provisional assessment amounts in monthly bills, claiming it was illegal and arbitrary. The court noted that a final assessment was not made before demanding payment. (Paras 2-5)

(B) Mandamus - The court directed the respondents to refer the matter to a Special Court for assessment of civil liability under Section 154(5) of the Electricity Act, 2003, while prohibiting coercive steps against the petitioner for the balance amount until the Special Court's decision. (Paras 4-5)

Facts of the case:
The petitioner sought a writ to declare the provisional assessment for energy theft as illegal, asserting that no final assessment was made. The respondents countered that the petitioner was liable for theft under Section 135.

Findings of Court:
The court ordered the respondents to refer the issue to the Special Court for determining civil liability and prohibited coercive actions against the petitioner.

Issues: The main issues were the legality of including provisional assessment amounts in monthly bills and the process for determining civil liability for energy theft.

Ratio Decidendi: The court emphasized that without a final assessment, the provisional amounts could not be demanded, and the matter should be adjudicated by a Special Court.

Result: Writ petition disposed of with directions.

ORDER:

Hear d Sr i Ch . Ven k at esh w ar a Reddy, lear n ed cou n sel appear in g on beh alf of t h e pet it ion er an d Sr i R. Vin od Reddy , lear n ed St an din g Cou n sel for TS Tr an sco, appear in g on beh alf of r espon den t s. 2 .

Th e pet it ion er appr oach ed t h e Cou r t seek in g pr ay er as u n der :

“… to issue an appropriate writ order or direction more in the nature of Mandamus declaring the action of the respondents in including the alleged amounts commuted by it on the pretext of theft of energy through its provisional assessment order dated 22-11-2007 and even before passing the final assessment orders or furnishing the documents in terms of the directions of this Honourable Court as made in WP Nos. 27841/ 2007, dated 17.06.2009 and insisting upon to pay the bill including the provisional assessment balance amounts in the monthly bill of November as being illegal, arbitrary and is in violation of Articles 14 and 19 of the Constitution of India and consequently direct the respondents not to include the balance Provisional assessment amounts as computed by them and insist for payment of the same without passing the final assessment orders and to pass such other order or orders as this Honble Court may deems fit just and proper in the circumstances of the case”.

3 . Th is Cou r t v ide it s or der dat ed 2 9 .1 1 .2 0 1 2 passed in t er im or der in W .P. No. 3 6 8 7 0 of 2 0 1 2 in favou r of t h e pet it ion er obser vin g as u n der :

“Notice before admission.

It is the allegation of the petitioner that pursuant to earlier provisional assessment proceedings, there is no final assessment yet and 50% of the provisional assessment amount has already been paid by the petitioner.

Learned Standing Counsel for APCPDCL appearing for the respondents seeks time to get instructions.

Pending further orders, respondents are directed not to take any steps for disconnection of power supply for service connection No. SZ049644 on the ground that the petitioner has not deposited Rs.50,876/ -, which is stated to be charged on the allegation of pilferage. However, the petitioner has to pay the regular bill excluding the said amount included in the current bills.

Post on 10.12.2012”.

4 . Sr i R. Vin od Reddy, lear n ed St an din g Cou n sel for TS Tr an sco, appear in g on beh alf of r espon den t s placed r elian ce on t h e av er m en t s m ade at par a Nos.3 , 4 , 5 an d 6 of t h e cou n t er affidavit filed on beh alf of r espon den t No.1 . Par a Nos. 3 , 4 , 5 an d 6 of t h e cou n t er affidavit filed on beh alf of Respon den t No.1 ar e ex t r act ed h er eu n der :

“ 3 . It is submitted that the demand notice dated 22-11-2007 has been issued to the petitioner under Section 135 of the Electricity Act, 2003 assessing the revenue loss caused at Rs.1,01,852.00/ - and the petitioner was directed to deposit the 50% of the assessed amount i.e., Rs.50,926.00/ - and the entire compounding amount. The petitioner was also served with a calculation sheet clearly detailing the connected load and the pilfered units along with the provisional assessment notice.

4 . It is submitted that the petitioner is liable to be prosecuted under section 135 of Electricity Act 2003 for theft of energy. Special Courts have been constituted to fix the Civil Liability in cases of theft. Th e case of t h e pet it ion er h as t o be r efer r ed t o t h e Special Cou r t an d t h e Civil Liabilit y sh all be assessed u n der sect ion 1 5 4 ( 5 ) of t h e Elect r icit y Act 2 0 0 3 .

Th e pet it ion er 's case can be r efer r ed t o t h e Special Cou r t on ly aft er paym en t of t h e en t ir e pr ovision al assessed am ou n t . 5 . It is submitted that in theft cases the matters are referred to Special Courts under Section 154

(5) of the Electricity Act, 2003 and there is no provision in the electricity Act, 2003 to finally assess the amount towards theft of energy.

6 . It is submitted that this Honorable Court by order dated: 2

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