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MADRAS HIGH COURT
Honourable Dr Justice G. JAYACHANDRAN,Honourable Mr Justice SUNDER MOHAN
M/S. TOWER STEELS LTD., HT.SC. – Appellant
Versus
THE CHAIRMAN – Respondent
WA(MD)/332/2012
ELECTRICITY - THEFT OF ENERGY - ASSESSMENT OF LOSS - POWER OF ELECTRICITY BOARD - INDEPENDENT OF CRIMINAL PROSECUTION - LIABILITY OF LESSEE FOR DUES OF LESSOR - NOT SUSTAINABLE - REFUND OF DEPOSIT MADE BY LESSEE - DIRECTED.
Fact of the Case:
The appellant in W.A.(MD).No.336 of 2012 was a lessee of a company that was using Service Connection No.121. The respondents issued a notice to the appellant, stating that they were in arrears of Rs.11,95,82,334/- (Rupees Eleven Crores Ninety Five Lakhs Eighty Two Thousand Three Hundred and Thirty Four only), which included the amount assessed towards theft of energy. The appellant challenged the said communication, stating that in view of the lease in their favour, the order fixing the responsibility on Service Connection No.121 for the alleged dues in Service Connection No.112 is unjustified and hence filed a Writ Petition in W.P.(MD).No.14585 of 2010 before this Court.
Finding of the Court:
The Court held that the assessment order passed by the respondents under Section 126 of the Electricity Act is independent of the prosecution under Section 154 of the Act. If the consumer is aggrieved by the final assessment order made under Section 126, he can challenge the order before the appellate authority under Section 127 of the Act. The Act further provides that in the event of the Special Court determining the liability for theft of energy and if the liability so determined by the Special Court is lesser than the amount deposited by the consumer pursuant to the assessment order, the excess amount deposited by the consumer shall be refunded to him. Therefore, the Court found that there is no merit in W.A.(MD).No.332 of 2012 and the same is dismissed.
Issues: 1. Whether the assessment of loss due to theft of energy by the Electricity Board is independent of the criminal prosecution?2. Whether the lessee is liable for the dues of the lessor?
Ratio Decidendi: 1. The assessment of loss due to theft of energy by the Electricity Board is independent of the criminal prosecution. The Electricity Board has the power to make the assessment under Section 126 of the Electricity Act, and the consumer can challenge the assessment order before the appellate authority under Section 127 of the Act.2. The lessee is not liable for the dues of the lessor. The Electricity Board cannot recover the dues of the lessor from the lessee, even if the lessor and the lessee are using the same service connection.
Final Decision: The Writ Appeal in W.A.(MD).No.336 of 2012 is dismissed with a direction to the first respondent to refund the sum of Rs.3,00,00,000/- (Rupees Three Crores only) within a period of four weeks from the date of receipt of a copy of this order to the appellant without interest.
W.A.(MD).Nos.332 and 336 of 2012
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
Reserved on : 21.12.2022
Pronounced on : 04.01.2023
CORAM
THE HONOURABLE DR. JUSTICE G.JAYACHANDRAN
AND
THE HONOURABLE MR. JUSTICE SUNDER MOHAN
W.A.(MD).Nos.332 and 336 of 2012
and
M.P.(MD).Nos.1, 1 and 2 of 2012
W.A.(MD).No.332 of 2012
Tower Steels Limited,
HT.SC.No.112,
Plot Nos.C-20 & 21,
SIDCO Industrial Estate,
Kappalur,
Madurai – 625 008.
Represented by its Proprietor – cum – Lessee,
S.Thangamani, of
Sri Raghavendhra Corporation.
....Appellant
Vs.
1.The Chairman,
Tamilnadu Electricity Board,
144, Anna Salai,
Chennai – 600 002.
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W.A.(MD).Nos.332 and 336 of 2012
2.The Executive Engineer,
TANGEDCO,
Madurai Circle,
Tamilnadu Electricity Board,
Thirumangalam,
Madurai.
....Respondents
Prayer : Writ Appeal filed under Clause 15 of the Letters Patent to set aside
the order passed in W.P.(MD).No.12737 of 2011 dated 19.12.2011 and
allow the same.
For Appellant : Mr.B.Saravanan
For R-1 and R-2 : Mr.R.Baskaran,
Additional Advocate General,
assisted by Mr.S.Deenadhayalan,
Standing Counsel.
W.A.(MD).No.336 of 2012
Sabari Alloys and Metals India Private Limited,
Plot No.C21/2, SIDCO Industrial Estate,
Kappalur,
Madurai.
Represented by its Business Executive
Tmt.Malathy.
....Appellant
(Cause title amended vide Court order dated 27.01.2020 made in W.A.
(MD).No.336 of 2012)
Vs.
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W.A.(MD).Nos.332 and 336 of 2012
1.The Superintending Engineer,
Madurai Electricity Distribution Circle,
K.Pudur,
Madurai – 7.
2.V.Kanagaraj,
Managing Director,
M/s.Tower Rolling Mill Limited,
C-12, SIDCO, Industrial Estate,
Kappalur,
Madurai.
....Respondents
Prayer : Writ Appeal filed under Clause 15 of the Letters Patent to set aside
the order dated 23.12.2011 passed by the learned Judge in W.P.(MD).No.
14585 of 2010 and allow the writ appeal as prayed for and thus render
justice.
For Appellant : Mr.M.S.Krishnan,
Senior Counsel
for Mr.Roshan Balasubramanian
For R-1
: Mr.R.Baskaran,
Additional Advocate General,
assisted by Mr.S.Deenadhayalan,
Standing Counsel.
For R-2
: Mr.B.Saravanan
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W.A.(MD).Nos.332 and 336 of 2012
COMMON JUDGMENT
SUNDER MOHAN, J.
The brief facts leading to the filing of the above appeals are as
follows:
a) The Tamil Nadu Electricity Board on 04.01.2010 issued a notice to
three persons, namely, D.Thillairaj, S.Thangamani and D.Thangaraj, stating
that the service connection in HTSC No.112 was inspected by the Executive
Engineer in the presence of their representatives. During the inspection, it
was found that the metering set of both main and check meter, current
transformer were found tampered and that the occupiers had stolen the
electrical energy. The approximate loss caused on account of the theft was
assessed at Rs.7,55,37,423/- (Rupees Seven Crores Fifty Five Lakhs Thirty
Seven Thousand Four Hundred and Twenty Three only). The recipients of
the said notice were asked to send objections, if any, to the provisional
assessment.
b) Thereafter, it appears that the aforesaid three persons participated
in the enquiry conducted on various dates.
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W.A.(MD).Nos.332 and 336 of 2012
c) On 04.03.2010, a final assessment order was issued addressed to
the aforesaid three persons, wherein, the loss caused by the dishonest
abstraction of electricity supply was assessed at Rs.7,55,37,423/- (Rupees
Seven Crores Fifty Five Lakhs Thirty Seven Thousand Four Hundred and
Twenty Three only).
d) On 26.11.2010, the Superintending Engineer, Madurai Electricity
Distribution Circle sent a communication to one M/s.Tower Steels India
Limited stating that they were in arrears of Rs.11,95,82,334/- (Rupees
Eleven Crores Ninety Five
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