ASSISTANT ENGINEER (D1), AJMER VIDYUT VITRAN NIGAM LIMITED & ANR. versus RAHAMATULLAH KHAN ALIAS RAHAMJULLA

Citation: [2020] 2 S.C.R. 929 · Decided: 18-02-2020 · Supreme Court of India · Bench: UDAY UMESH LALIT · Disposal: Disposed off

Cited by 3 judgment(s) · cites 5 · see the full citation network in Lexace

Judgment (excerpt)

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ASSISTANT ENGINEER (D1), AJMER VIDYUT VITRAN
NIGAM LIMITED & ANR.
v.
RAHAMATULLAH KHAN ALIAS RAHAMJULLA
(Civil Appeal No. 1672 of 2020)
FEBRUARY 18, 2020
[UDAY UMESH LALIT AND INDU MALHOTRA, JJ.]
Electricity Act, 2003: s. 56(2) – Disconnection of supply in
default of payment – Term ‘first due’ in s.56(2) – Meaning of –
Commencement limitation period of two years, when – Held:
Electricity charges would become “first due” only after the bill is
issued to the consumer, even though the liability to pay may arise
on the consumption of electricity – Period of limitation of two years
would commence from the date on which the electricity charges
became “first due” u/s. 56(2) – This provision restricts the right of
the licensee company to disconnect electricity supply due to non-
payment of dues by the consumer, unless such sum has been shown
continuously to be recoverable as arrears of electricity supplied, in
the bills raised for the past period – Furthermore, s. 56(2) does not
preclude the licensee company from raising an additional or
supplementary demand after the expiry of the limitation period u/s.
56(2) in the case of a mistake or bona fide error – However, licensee
company cannot take recourse to the coercive measure of
disconnection of electricity supply, for recovery of the additional
demand – As per s. 17(1)(c) of the Limitation Act in case of a mistake,
the limitation period begins to run from the date when the mistake is
discovered for the first time – On facts, licensee company discovered
the mistake of billing under wrong tariff Code on 18.03.2014 and
raised an additional demand on 18.03.2014 for the period July,
2009 to September, 2011 – Limitation period of two years u/s. 56(2)
had by then already expired – Period of limitation would commence
from the date of discovery of the mistake – Licensee company may
take recourse to any remedy available in law for recovery of the
additional demand, but is barred from taking recourse to
disconnection of supply of electricity u/s. 56(2) – Limitation Act,
1963 – s. 17(1)(c).
 [2020] 2 S.C.R. 929
929
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SUPREME COURT REPORTS
[2020] 2 S.C.R.
Disposing of the appeals, the Court
HELD: 1.1 Section 56 of the Electricity Act, 2003 provides
for disconnection of supply in the case of default in payment of
electricity charges. The obligation of a consumer to pay electricity
charges arises after the bill is issued by the licensee company.
The bill sets out the time within which the charges are to be paid.
If the consumer fails to pay the charges within the stipulated
period, they get carried forward to the next bill as arrears. [Para
6.2, 6.3][938 E-H]
1.3 The proviso to Section 56(1) carves out an exception
by providing that the disconnection will not be effected if the
consumer either deposits the amount “under protest”, or deposits
the average charges paid during the preceding six months. Sub-
section (2) of Section 56 by a non obstante clause provides that
notwithstanding anything contained in any other law for the time
being in force, no sum due from any consumer, shall be
recoverable under Section 56, after the expiry of two years from
the date when the sum became “first due”, unless such sum was
shown continuously recoverable as arrears of charges for the
electricity supplied, nor would the licensee company disconnect
the electricity supply of the consumer. [Paras 6.4 and 6.5][938-
H; 939 A-C]
Chandavarkar Sita Ratna Rao v. Ashalata S. Guram.
(1986) 4 SCC 447 : [1986] 3 SCR 866 – referred to.
1.4 The liability to pay arises on the consumption of
electricity. The obligation to pay would arise when the bill is issued
by the licensee company, quantifying the charges to be paid.
Electricity charges would become “first due” only after the bill is
issued to the consumer, even though the liability to pay may arise
on the consumption of electricity. [Para 6.6][939 F-H]
1.5 Sub-section (1) of Section 56 confers a statutory right
to the licensee company to disconnect the supply of electricity, if
the consumer neglects to pay the electricity dues. This statutory
right is subject to the period of limitation of two years provided
by sub-section (2) of Section 56 of the Act. The period of limitation
of two years would commence from the date on which the
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electricity charges became “first due” under sub-section (2) of
Section 56. This provision restricts the right of the licensee
company to disconnect electricity supply due to non-pay

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