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Gujarat High Court · body

2004 DIGILAW 609 (GUJ)

LEENABEN W/o SOHANLAL HEMANDAS SONI v. AHMEDABAD ELECTRICITY CO. LTD.

2004-09-10

D.N.PATEL

body2004
D. N. PATEL, J. ( 1 ) THE present petitions have been preferred under Article 226 of the Constitution of India, whereby the petitioners have challenged the action of the respondent no. 1 Company of disconnection of electricity supply and have prayed for a declaration that the respondent no. 1 company has no power and authority to disconnect the power supply in absence of express provisions of Act or Rules framed thereunder. ( 2 ) THE learned counsel for the petitioners submitted that the respondent no. 1 has committed breach of section 126 of The Electricity Act, 2003 (hereinafter referred to as "the Act of 2003") as the Assessing Officer has to make inspection of the premises of the petitioner, has to issue notice of hearing and thereafter only, the assessment under section 126 of the Act of 2003 can be made by the respondent no. 1 company. It is also submitted by the learned counsel for the petitioners that for the alleged theft of electricity, the respondent no. 1 company has no power of disconnection as per section 56 of the Act of 1956. The respondent no. 1 has to give at least 15 days clear notice in writing. Such notice has not been given and hence the action of the respondent no. 1 company of disconnection of electricity is bad in law and deserves to be quashed and set aside and should be held to be illegal and dehors of the provisions of the Act of 2003. It is also submitted by the learned counsel for the petitioners that Electricity Supply Code is not framed by the respondent no. 2 and, therefore, there is no power of disconnection of power supply with the respondent no. 1 company. The learned counsel for the petitioners has also submitted that as per section 127 of the Act of 2003, upon payment of 1/3rd of the assessed demand being deposited with the respondent no. 1 company, the respondent no. 1 ought to reconnect electricity connection and thereafter, the respondent no. 1 can finalise the assessment as per the provisions of section 126 of the Act of 2003. However, no such opportunity has been given by the respondent no. 1 company and hence the action of the respondent no. 1 of disconnection of electricity supply is illegal, arbitrary and hence violative of Article 14 of the Constitution of India. 1 can finalise the assessment as per the provisions of section 126 of the Act of 2003. However, no such opportunity has been given by the respondent no. 1 company and hence the action of the respondent no. 1 of disconnection of electricity supply is illegal, arbitrary and hence violative of Article 14 of the Constitution of India. ( 3 ) UPON issuance of the notice, the respondent no. 1 company has appeared through their learned advocate, who mainly submitted that the prayer in the petition is only in respect of the challenge of the power or authority to disconnect the power supply by the respondent no. 1 in absence of any provisions of the Act or Rules framed thereunder. The petitioner has not prayed for an assessment made by the respondent no. 1 company. It is also submitted by the learned counsel for the respondent no. 1 company that under the provisions of section 21 (2) of the Indian Electricity Act, 1910 (hereinafter referred to as "the Act of 1910"), Conditions of Supply have been framed and the Government of Gujarat has approved conditions of supply vide its notification no. GU-94-19-AEC-1691-4208-K dated 14th October, 1994 and as per clause 22 (c) thereof, the licensee (in the present case, respondent no. 1) shall be entitled to disconnect the supply of a consumer who has indulged in malpractice. Similarly, under clause 23 (b), whenever there is a theft of energy, by any consumer, the licensee (respondent no. 1) has all power to disconnect the electricity until the amount so assessed against the theft of energy is paid by the consumer. It is also contended by the learned counsel for the respondent no. 1 company that as per Annexure "d", to the Conditions of Supply framed under section 21 (2) of the Act of 1910, a format of agreement has been given which is to be signed by the consumer and by the officer of the respondent no. 1 and as per clause 7 thereof, the condition of supply framed under section 21 (2) of the Act of 1910 is binding upon the present petitioners and, therefore, the aforesaid two clauses 22 (b) (theft of energy) and 23 (c) (for malpractice) are binding to the petitioners which empower the respondent no. 1 company to disconnect electricity supply in case of malpractice as well as theft of energy. 1 company to disconnect electricity supply in case of malpractice as well as theft of energy. In case of theft of electricity, such disconnection shall be continued until the amount assessed against theft of energy is paid by the consumer. In the present case, electricity meter of the petitioner was found tampered with and therefore, electricity connection of the petitioners was disconnected and the meter was taken away by the respondent no. 1 by applying seals and for that, inspection report was given, a copy of which is at Annexure "a" to the memo of the petition. It is submitted by the learned counsel for the respondent no. 1 that the petitioners have committed theft of electricity as defined under section 135 of the Act of 2003. It is also submitted by him that officers of respondent no. 1 have all power to enter, inspect and search the premises of the petitioner, if they have a reason to believe that electricity has been, is being or is likely to be used unauthorisedly as per the order passed by the State of Gujarat, Energy and Petrochemicals Department, Gandhinagar dated 5th June, 2004. Therefore, officers of the respondent no. 1 company have been empowered under section 135 (2) of the Act of 2003 by the State of Gujarat. The learned counsel for the respondent no. 1 has further submitted that the board has inherent power to disconnect the electricity connection in case of malpractice and theft of energy. In support of his this contention, he has placed reliance on the judgments of the Honble Apex Court, reported in AIR 1996, SC, 2258 as well as AIR 1997, SC,1101. He has further submitted that as per section 135 (2) (b) of the Act of 2003, the respondent no. 1 has all power to remove all such devices which are used for unauthorised use of energy. In the present case, the meter of the petitioners was found tampered with (as per Annexure "a" to the memo of the petition) and, therefore, the same was removed by applying seals. Lastly, it is submitted by the learned counsel for the respondent no. In the present case, the meter of the petitioners was found tampered with (as per Annexure "a" to the memo of the petition) and, therefore, the same was removed by applying seals. Lastly, it is submitted by the learned counsel for the respondent no. 1 that as per section 185 (2) and (3) read with Schedule, Conditions of Supply and Miscellaneous Charges framed under section 21 (2) of the Act of 1910, are binding to the petitioner, more so when there is an agreement as per Annexure "d" appended with the Conditions of Supply and hence, the petitioners are bound by the Conditions of Supply and especially condition nos. 22 and 23 thereof, which empower the respondent no. 1 to disconnect electricity supply in case of malpractice and theft of energy respectively. The aforesaid contention is also fortified by reading section 185 (5) of the Act of 2003 read with section 6 of General Clauses Act, 1896. Thus, the conditions of Supply framed under section 21 of the Act of 1910 are binding upon the petitioners. ( 4 ) IN view of the aforesaid submissions of the learned counsel for the respondent no. 1, the action of the respondent no. 1 cannot be said to be illegal, arbitrary and dehors the Act of 2003. On the contrary, the action of respondent no. 1 is absolutely just, proper and in consonance with facts and law. ( 5 ) BEFORE I go into the merits of the case, certain provisions of the Act of 2003 are necessary to be referred to for ready reference. Sections 126 and 127 of the Act of 2003 read as under:"126. Assessment (1) 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 records maintained by any person, the assessing officer comes to the conclusion that such person is indulging in unauthorised use of electricity, he shall provisionally assess to the best of his judgment the electricity charges payable by such person or by any other person benefitted by such use. (2) the order of provisional assessment shall be served upon the person in occupation or possession or in charge of the place or premises in such manner as may be prescribed. (2) the order of provisional assessment shall be served upon the person in occupation or possession or in charge of the place or premises in such manner as may be prescribed. (3) the person, on whom a notice has been served under sub-section (2) shall be entitled to file objections, if any, against the provisional assessment before the assessing officer, who may, after affording a reasonable opportunity of hearing to such person, pass a final order of assessment of the electricity charges payable by such person. (4) any person served with the order of provisional assessment may, accept such assessment and deposit the assessed amount with the licensee within seven days of service of such provisional assessment order upon him: provided that in case the person deposits the assessed amount, he shall not be subjected to any further liability or any action by any authority whatsoever. (5) if the assessing officer reaches to the conclusion that unauthorised use of electricity has taken place, it shall be presumed that such unauthorised use of electricity was continuing for a period of three months immediately preceding the date of inspection in case of domestic and agricultural services and for a period of six months immediately preceding the date of inspection for all other categories of services, unless the onus is rebutted by the person, occupier or possessor of such premises or place. (6) the assessment under this section shall be made at a rate equal to one and half times the tariff applicable for the relevant category of services specified in sub-section (5 ). Explanation - For the purposes of this section,- (a) "assessing officer"means an officer of a State Government or Board or licensee, as the case may be, designated as such by the State Government; (b) "unauthorised use of electricity" means the usage of electricity- b (i) by any artificial means; or (ii) by a means not authorised by the concerned person or authority or licensee; or (iii) through a tampered meter; or (iv) for the purpose other than for which the usage of electricity was authorised. 127. 127. Appeal to appellate authority- (1) Any person aggrieved by the final order made under section 126 may, within thirty days of the said order, prefer an appeal in such form, verified in such manner and be accompanied by such fee as may be specified by the State Commission, to an appellate authority as may be prescribed. (2) no appeal against an order of assessment under sub-section (1) shall be entertained unless an amount equal to one third of the assessed amount is deposited in cash or by way of bank draft within the licensee and documentary evidence of such deposit has been enclosed alongwith the appeal. (3) the appellate authority referred to in sub-section (1) shall dispose of the appeal after hearing the parties and pass appropriate order and send copy of the order to the assessing officer and the appellant. (4) the order of the appellate authority referred to in sub-section (1) passed under sub-section (3) shall be final. (5) no appeal shall lie to the appellate authority referred to in sub-section (1) against the final order made with the consent of the parties. (6) when a person defaults in making payment of assessed amount, he, in addition to the assessed amount, shall be liable to pay, on the expiry of thirty days from the date of order of assessment, an amount of interest at the rate of sixteen per cent per annum compounded every six months. "similarly provisions of section 21 (2) of the Act of 1910 read as under:" 21. Restriction on licensees controlling or interfering with use of energy. "similarly provisions of section 21 (2) of the Act of 1910 read as under:" 21. Restriction on licensees controlling or interfering with use of energy. (1) xxx xxx xxx (2) A licensee may, with the previous sanction of the State Government, given after consulting (the State Electricity Board and also) the local authority, where the licensee is not the local authority, make conditions not inconsistent with this Act or with the licence or with any rules made under this Act to regulate his relations with persons who are or intend to become consumers, and may, with the like sanction given after the like consultation, add to or alter or amend any such conditions; and any conditions made by a licensee without such sanction shall be null and void; provided that any such conditions made before the 23rd day of January, 1922, shall, if sanctioned by the (State Government) on application made by the licensee before such date as the (State Government) may, by general or special order, fix in this behalf, be deemed to have been made in accordance with the provisions of this sub-section. "in pursuance of section 21 (2) of the Act of 1910, Conditions of Supply and Miscellaneous Charges have been framed and the same have been approved by the State of Gujarat vide Notification No. GU-94-19-AEC-1691-4208-K dated 14th October, 1994. Clauses 22 and 23 read as under: "22. Malpractice- (a) Malpractice shall mean contravention by the consumer of any of the provisions of the Act, the Electricity (Supply) Act, 1948 or the Indian Electricity Rules, 1956 or of any other law governing the supply and use of electricity and the rules framed thereunder as also contravention of any of the provisions of the Licencees "conditions of Supply and Miscellaneous Charges" or any of the terms and conditions of any agreement governing the supply of electricity by the Licensee to the consumer and shall in particular include the following cases- i) Supply of electricity by a consumer without the permission of the licensee to any other person or premises whose supply to service has been disconnected by the Licensee for any reason or for which the service was originally provided by the Licensee and subsequently removed. ii) The drawl of power by the consumer in excess of his contract demand without the specific permission of the Licensee. ii) The drawl of power by the consumer in excess of his contract demand without the specific permission of the Licensee. (iii) Unauthorised addition or alteration of, or extension to the consumers electrical installation without the permission of the Licensee. iv) The use of Licensees supply by the consumer under a higher method of charging than that under which the supply was originally made available to the consumer. v) Capacitors once installed when found to have been removed from the installation. (b) in the cases of unauthorised additions, alterations or extensions carried out by low voltage and medium voltage consumers to their electrical installations without the permission of the Licensee, the Licensee shall be entitled to recover from the consumer additional charges retrospectively for such unauthorised additions, alterations or extensions as prescribed under item No. 12 of Part II of these Conditions of Supply together with incidental charges. Payment of such charges shall not entitle the consumer to continue to use unauthorised load in future as a matter of right. (c) without prejudice to the rights of the Licensee to initiate legal proceedings against any person found to be committing any of the malpractices mentioned above, the Licensee shall be entitled to disconnect the supply of such a consumer. The supply shall not however be reconnected unless the consumer has qualified for reconnection by removing the cause of disconnection and settled the charges as per item (b) 23. a) Theft of energy-Malicious wastage or diversion of energy-Interference with meters or Licensees works. Under the Indian Electricity Act, 1910, the following acts are offences which are punishable with imprisonment or fine or both as prescribed under different sections as follows:-