MAHARASHTRA STATE ELECTRICITY DISTRIBUTION CO. LTD.V. THE APPELLATE AUTHORITY & ANR. versus THE APPELLATE AUTHORITY & ANR.

Citation: [2018] 2 S.C.R. 537 · Decided: 15-02-2018 · Supreme Court of India · Bench: R.K. AGRAWAL · Disposal: Dismissed

Judgment (excerpt)

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MAHARASHTRA STATE ELECTRICITY DISTRIBUTION CO.
LTD.
v.
THE APPELLATE AUTHORITY & ANR.
(Civil Appeal No. 3370 of 2007)
FEBRUARY 15, 2018
[R. K. AGRAWAL AND  ABHAY MANOHAR SAPRE, JJ.]
Electricity Act, 2003 – ss. 126, 127 – Respondent No.2 are
consumers of electricity, which is supplied to them by the State
Electricity Board – The sleuths of the Board visited the respondent
no.2’s factory and replaced electricity meter with a new meter –
Sleuths again visited the factory and on inspection found some
tampering with the meter seals, this led to making of provisional
assessment by the appellant u/s.126 for unauthorised use of
electricity – Writ Petition – During the pendency of the writ petition,
final assessment order was passed against the respondent no.2,
however, same was quashed and set aside and matter remanded to
the Authority – Again, Authority passed final order against the
respondent no.2 – Appeal disposed of by the Appellate Authority –
Writ petitions filed, both by the Board and the respondent no.2-
consumer – High Court remanded the case to the Assessing Authority
and directed the parties to abide by the provisions of ss.126/127 –
Held: There is no reason to interfere with the judgment of the High
Court, which is sustainable on facts – High Court while allowing
the consumers’ writ petitions and, in consequence, setting aside of
the Appellate order passed u/s.127 of the Act by the Appellate
Authority rightly remanded the case to the Assessing Authority for
making provisional assessment u/s.126 and then to take recourse
u/s.127 of the Act for filing appeal, if need arises – Directions of
the High Court in conformity with the scheme of the Act – Thus, the
authorities directed to comply with the directions of the High Court
and pass consequential order u/s.126.
Dismissing the appeals, the Court
HELD: 1.  The High Court while allowing the consumers’
writ petitions and, in consequence, setting aside of the Appellate
Order passed under Section 127 of the Act by the Appellate
[2018] 2  S.C.R. 537
537
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SUPREME COURT REPORTS
[2018]  2 S.C.R.
Authority rightly remanded the case to the Assessing Authority
for making provisional assessment under Section 126 of the Act
and then to take recourse under Section 127 of the Act for filing
appeal, if need arises.  There is no reason to disturb these
directions which are in conformity with the scheme of the Act.
[Para 12] [541-E-F]
2. So far as the applicability of the provisions of the new
Electricity Act, 2003 to the case at hand is concerned, though
some doubts were raised about its applicability but it has no
substance.  The Act 2003 does apply to the facts of this case
because the Act 2003 came into force on 10.06.2003 whereas
the inspection of the Meter installed in respondent No.2’s factory
premises was made by the sleuths of the Board on 02.08.2003.
It is, therefore, clear that the Board made an inspection of the
Meter after the Act 2003 came into force.  The cause of action,
therefore, accrued to the Board after the Act 2003 came into
force and, therefore, the case of respondent No.2 was required
to be dealt with in accordance with the procedure prescribed
under the Act of 2003. [Paras 13, 14] [541-F-H; 542-A]
3. Since the action was taken by the Board against
respondent No.2 (consumer) under Section 126 of the Act by
raising the provisional/final bill and, therefore, respondent No.2
was well within their right to file an appeal against such demand
under Section 127 of the Act before the Appellate Authority. [Para
15]  [542-B]
4.  There is no merit in the submission of the Board that
respondent No.2 had no right of appeal under Section 127 of the
Act to challenge the order/demand raised under Section 126 of
the Act.  In other words, respondent No.2 had right of appeal
under Section 127 of the Act to challenge the order passed under
Section 126 of the Act.  [Para 16] [542-C]
5.  Indeed, once the Act is held applicable to the controversy
in question, a fortiori, all the provisions of the Act would then be
applicable to the case which would obviously include a provision
which provides a right of appeal to the Appellate Authority.  In
the scheme of the Act, Section 126 of the Act deals with
assessment of electricity charges payable by such person
(consumer) for unauthorized use of electricity whereas Section
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135 deals with the cases of theft of electricity. In other words,
once the Board detects the case of unauthoriz

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