WEST BENGAL STATE ELECTRICITY DISTRIBUTION COMPANY LTD. & ORS. versus M/S. ORION METAL PVT. LTD. & ANR.

Citation: [2019] 11 S.C.R. 385 · Decided: 21-08-2019 · Supreme Court of India · Bench: R. BANUMATHI · Disposal: Appeal(s) allowed

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Judgment (excerpt)

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WEST BENGAL STATE ELECTRICITY DISTRIBUTION
COMPANY LTD. & ORS.
v.
M/S. ORION METAL PVT. LTD. & ANR.
(Civil Appeal No. 6547 of 2019)
AUGUST 21, 2019
[R. BANUMATHI AND R. SUBHASH REDDY, JJ.]
Electricity Act, 2003: Object and reasons of enactment –
Discussed.
Electricity Act, 2003: s.126(6)(b) – Unauthorized use of
electricity – Meaning of – Held:  Unauthorized use of electricity
means, the usage of electricity by any artificial means or by a means
not authorized by the concerned person or authority or licensee;
or through a tampered meter; or for the purpose other than for
which the usage of electricity was authorized; or for the premises
or areas other than those for which the supply of electricity was
authorized – Thus, use of energy through tampered meter is included
in the definition of  unauthorized use of electricity.
Electricity Act, 2003: s.126(1) – Power of authorities to make
assessment under s.126(1) to assess the loss of energy where
electricity is used through tampered meter – Held: The authorities
under the Act are empowered to make a provisional and final
assessment by invoking power under s.126(1) of the Act, even in
cases where electricity is unauthorisedly used by way of theft.
Electricity Act, 2003: s.126(1) – Criminal complaint of theft
of energy – Whether criminal complaint and assessment proceedings
under s.126(1) can go simultaneously – Held: Whenever there is
allegation of theft of energy committed by the consumer, even after
lodging a police complaint for commission of such offence, it is
always open for the authorities to make provisional and final
assessment to recover loss of energy in exercise of power under
s.126(1) of the Act.
   [2019] 11 S.C.R. 385
385
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SUPREME COURT REPORTS
[2019] 11 S.C.R.
Electricity Act, 2003: s.126 and s.135 – Distinction between
– Held: s.126 forms part of the scheme which authorizes electricity
supplier to ascertain loss in terms of revenue caused to it by the
consumer by his act of “unauthorized use of electricity” whereas
s.135 deals with offence of theft if he is found to have indulged
himself in the acts mentioned in clauses (a) to (e) of sub-section (1)
of s.135 of Act.
Electricity Act, 2003: s.126, 135, 154 – Proceedings under
s.126(1) and under s.154(5) – Held: Power conferred on authorities
for making assessment under s.126(1) of the Act and power to
determine civil liability under s.154(5) of the Act, cannot be said to
be parallel to each other – In a given case where there is no theft of
energy, amounting to unauthorized use of energy, in such cases no
complaint of theft can be lodged as contemplated under s.135 of
the Act – In such cases for loss of energy, on account of
unauthorized use of energy not amounting to theft, it is always open
for the authorities to assess the loss of energy by resorting to power
under s.126(1) of the Act – In cases where allegation is of
unauthorized use of energy amounting to theft, in such cases, apart
from assessing the proceedings under s.126(1) of the Act, a complaint
also can be lodged alleging theft of energy as defined under s.135(1)
of the Act – In such cases, the Special Court is empowered to
determine civil liability under s.154(5) of the Act – On such
determination of civil liability by the Special Court, the excess
amount, if any, deposited by the petitioner, is to be refunded to the
consumer – It is a settled principle that to prove the guilt of the
accused in a criminal proceeding, authorities have to prove the
case beyond reasonable doubt and the element of mens rea is also
to be established – On the other hand, such a strict proof is not
necessary for assessing the liability under s.126(1) of the Act.
Electricity Act, 2003:  s.154 –  Procedure and power of
Special Court – The Special Court is empowered to convict the
consumer and impose a sentence of imprisonment – The Special
Court, in cases, where a criminal complaint is lodged, is also
empowered to determine civil liability under s.154(5) of the Act –
As per s. 154(6) of the Act, in case civil liability so determined by
the Special Court is less than the amount deposited by the consumer
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or the person, the excess amount so deposited by the consumer or
the person, shall be refunded by the licensee or the concerned
person, as the case may be – Merely because the Special Court is
empowered to determine civil liability under s.154(5) of the Act, in
cases where a complaint is lodged, it cannot be said

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