High Court of KeralaSingle JudgeDismissed

The Assistant Executive Engineer, Electrical Sub Division, Kerala State Electricity Board Ltd., Ranny South v Narayanan K., Indus Towers Limited and Consumer Grievance Redressal Forum (South), Kottarakkara

Case / Petition Number:WP(C).No.13339 of 2016 (N)

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • A.M. Shaffique
Judgment Date
2016-10-26
Court Decision / Holding
This writ petition is dismissed. The CGRF order quashing the short- assessment bill stands; the petitioners’ challenge is rejected, and the short- assessment bill remains annulled in the manner decided by CGRF.
Final Disposition
Dismissed

Parties to the Case

Appellants / Petitioners

  • The Assistant Executive Engineer, Electrical Sub Division, The Kerala State Electricity Board Ltd., Ranny South.
  • The Assistant Engineer, Electrical Section, The KSEB Ltd., Ranny South.

Respondents

  • Narayanan K., Indus Towers Limited, 8th Floor, Vankarath Towers, Palarivattom, Cochin, PIN - 682 024.
  • The Consumer Grievance Redressal Forum (South), Kottarakkara, represented by its Chairperson, PIN - 691 506.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. T.R. Rajan, SC, K.S.E.B.

Counsels for Respondents

  • • Sri. P. Sathisan
  • • Sri. N. Sasidharan UnniThAn

Case Synopsis & Summary

This writ petition challenges an order of the Consumer Grievance Redressal Forum (CGRF) which quashed a short- assessment bill issued after a meter replacement and an audit-based demand. A new meter was installed on 28 January 2011; readings could not be taken initially due to the door being closed, with the next reading only on 5 July 2011. Subsequently, a faulty meter necessitated another installation on 8 July 2011. A short assessment bill was issued for January 2011 to July 2011, and the CGRF ruled that the demand fell outside the period of limitation under Section 56(2) of the Electricity Act, 2003, thereby setting aside the bill. The Board challenged this order in a writ petition. The petitioners contend that Section 56(2) does not apply since the amount became first due only on 11 December 2014, when the bill was issued, and that the demand was based on an audit rather than monthly bills. They rely on Brihanmumbai Municipal Corporation v. Yatish Sharma, Sunderdas v. Kerala State Electricity Board, Mathew George v. Assistant Engineer, and on Regulations 31(c) of the Conditions of Supply of Electrical Energy, 1999 and Regulation 18(8) of the Kerala Electricity Supply Code, 2005. The court discusses these authorities and ultimately declines to interfere, upholding the CGRF order and dismissing the petition.

Provisions of Law Cited

Section 56(2) of the Electricity Act, 2003Section 26(6) of the Indian Electricity Act, 1910Regulation 31(c) of the Conditions of Supply of Electrical Energy, 1999Regulation 18(8) of the Kerala Electricity Supply Code, 2005

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners argued that Section 56(2) of the Electricity Act, 2003 has no application because the amount became first due only on 11 December 2014 when the bill was issued, and the demand arose on the basis of an audit rather than monthly bills. They relied on Brihanmumbai Municipal Corporation v. Yatish Sharma and Sunderdas v. Kerala State Electricity Board to contend that the period of limitation applies to ordinary billing, and on Mathew George v. Assistant Engineer to argue that audit-based demands do not save limitation; they also invoked Regulation 31(c) and the precepts of the Kerala Electricity Supply Code, 2005, to challenge back assessments.

Contentions of Respondents

The respondents contended that the CGRF rightly examined the matter and that the demand, though based on an audit, still falls within the statutory framework for recovery and limitation; they relied on the established practice of monthly or bi-monthly billing and the statutory provisions that govern disconnection for non-payment, arguing that the petitioner cannot escape liability merely because the demand arose after several months or due to a faulty meter.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
Brihanmumbai Municipal Corporation v. Yatish Sharma2007(3) KLT S.N.9Mentioned OnlyCited to note the proposition that amount becomes due when bills are issued; not central to the present case’s decision.
Sunderdas v. Kerala State Electricity Board2009(2) KLT S.N.5 Case No.7Mentioned OnlyCited for the same general proposition about due dates tied to billing; not a decisive factor in the outcome here.
Mathew George v. Assistant EngineerW.P.C.No.2147 of 2009PositiveHeld that audit-based demands do not save the period of limitation; used to support limitation argument in the present case.
Alex v. Assistant EngineerW.P.C.No.19094 of 2012PositiveHeld that arrear due for two years preceding the demand can be recovered under Section 56(2); cited as support for time-bound recovery.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT:** ## **THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE** **WEDNESDAY, THE 26TH DAY OF OCTOBER 2016/4TH KARTHIKA, 1938** ## **WP(C).No. 13339 of 2016 (N)** **----------------------------** **PETITIONER(S): -------------** **1. THE ASSISTANT EXECUTIVE ENGINEER, ELECTRICAL SUB DIVISION, THE KERALA STATE ELECTRICITY BOARD LTD., RANNY SOUTH.** **2. THE ASSISTANT ENGINEER, ELECTRICAL SECTION, THE KSEB LTD., RANNY SOUTH.** **BY ADV. SRI.T.R.RAJAN,SC,K.S.E.B.** **RESPONDENT(S):** **--------------** **1. NARAYANAN K., INDUS TOWERS LIMITED, 8TH FLOOR, VANKARATH TOWERS, PALARIVATTOM, COCHIN, PIN - 682 024.** **2. THE CONSUMER GRIEVANCE REDRESSAL FORUM (SOUTH), KOTTARAKKARA, REPRESENTED BY ITS CHAIRPRSON, PIN - 691 506.** **R1 BY ADV. SRI.P.SATHISAN R2 BY ADV. SRI.N.SASIDHARAN UNNITHAN** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 26-10-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **rvs.** _**WP(C).No. 13339 of 2016 (N)**_ ## **APPENDIX** ## **PETITIONER(S)' EXHIBITS:** **-----------------------** **EXT. P1 TRUE COPY OF THE COMPLAINT IN OP NO.1439/2015 FILED BY THE 1ST RESPONDENT BEFORE THE SECOND RESPONDENT** **EXT. P2 TRUE COPY OF THE STATEMENT OF FACTS FILED BY THE 2ND PETITIONER IN OP NO.1439/2015 ON THE FILES OF THE 2ND RESPONDENT** **EXT. P3 TRUE COPY OF THE ORDER DATED 4.7.2015 PASSED BY THE 2ND RESPONDENT IN OP NO.1439/2015** **EXT. P4 TRUE COPY OF THE REVIEW PETITION IN RP NO.1606/2015 IN OP NO.1439/2015 FILED BY THE 2ND PETITIONER BEFORE THE SECOND RESPONDENT.** **EXT. P5 TRUE COPY OF THE ORDER DATED 26.12.2015 PASSED BY THE 2ND RESPONDENT IN RP NO.1606/2015 IN OP NO.1439/2015.** ## **RESPONDENT(S)' EXHIBITS :** **-----------------------** **NIL.** **/TRUE COPY/** **P.A.TO JUDGE** **rvs.** ## **A.M.SHAFFIQUE, J * * * * * * * * * * * *** W.P.C.No.13339 of 2016 ---------------------------------------- Dated this the 26[th] day of October 2016 ## **J U D G M E N T** This writ petition is filed by the Officers of the Kerala State Electricity Board (hereinafter referred to as the 'Board') challenging an order passed by the Consumer Grievance Redressal Forum (for short 'CGRF') by which the complaint filed by the 1[st] respondent was allowed and the short assessment bill issued has been set aside. Though a review petition was filed, the same had been rejected in terms of Ext.P5. 2. The facts as disclosed would show that a new meter of the consumer/1[st] respondent was installed on 28/01/2011. Thereafter, the readings could not be taken as the door was closed. The next reading could be taken only on 05/07/2011. When, again it was noticed that the meter was defective, another meter was installed on 08/07/2011. A short assessment bill was issued from 11/12/2014 in respect of the period from January 2011 to July 2011. W.P.C.No.13339/2016 2 3. The 1[st] respondent preferred a complaint before the CGRF. The CGRF found that the demand made beyond the time stipulated under Section 56(2) of the Electricity Act, 2003 (hereinafter referred to as 'the Act') and accordingly the assessment bill was set aside. The Board filed a review petition which also came to be dismissed, against which this writ petition is filed. 4. The main contention urged by the learned counsel for the petitioners is that Section 56(2) of the Act has no application to the facts of the case since the amount became first due only on 11/12/2014 when the bill had been issued. Therefore, the CGRF was not justified in allowing the complaint based on Section 56(2) of the Act. Learned counsel also placed reliance upon the judgment in **Brihanmumbai Municipal Corporation v. Yatish Sharma** [ _2007(3) KLT S.N.9]_ and **Sunderdas v. Kerala State Electricity Board** _[2009(2) KLT S.N.5 Case No.7]._ There is no dispute about the judgments aforesaid. In so far as the judgment only stated that the amount becomes due when the monthly/bimonthly bills are issued. It is the normal practice that the bills are issued by the Board either on monthly basis or on bi-monthly W.P.C.No.13339/2016 3 basis and if the amounts are not paid, power will be disconnected. 5. In the case on hand, the factual issues involved would show that the demand had been made not during the respective months when the amount is payable, but based on an audit report. The learned Single Judge of this Court in **Mathew George v. Assistant Executive Engineer** W.P.C.No.2147 of 2009 held that if the demand is based on an audit report, it will not save the period of limitation as provided under Section 26(6) of the Indian Electricity Act, 1910 and Regulation 31(c) of the Conditions of Supply of Electrical Energy, 1999. It was held that if the meter is faulty, the Electrical Inspector has to estimate the amount of energy supplied to the customer during the period of dispute, not exceeding six months. Reference is also made to Regulation 31(c) enabling the Board to declare a meter as faulty and to quantify the energy consumed by taking average consumption of previous three months. It was held that back assessment is possible only if the authority finds that the meter was remaining faulty. It was further held that respondents could have finalised the back assessment immediately on completion of three months after the replacement of the meters, which is W.P.C.No.13339/2016 4 against law. 6. In yet another judgment, in **Alex v. Assistant Engineer** [W.P.C.No.19094 of 2012] also, the learned Single Judge of this Court had occasion to hold that going by Section 56 (2) of the Electricity Act, 2003 and Regulation 18(8) of the Kerala Electricity Supply Code, 2005, arrear due for two years preceding the demand alone can be recovered. Section 56(2) reads as under: ## _**“56. Disconnection of supply in fault of payment.-**_ _(1) xxxxxx_ _(2) Notwithstanding anything contained in any other law for the time being in force, no sum due from any consumer, under this section shall be recoverable after the period of two years from the date when such sum became first due unless such sum has been shown continuously as recoverable as arrear of charges for electricity supplied and the licensee shall not cut off the supply of the electricity.”_ W.P.C.No.13339/2016 5 7. I do not want to go into the controversy arising in the present case with reference to the legal position in regard to the applicability of Section 56(2) of the Act. This is a case in which the CGRF had considered the matter raised by the petitioner and Ext.P3 is the said order. Perusal of the order would show that the CGRF had interfered in the matter on various other grounds. The applicability of Section 56(2) of the Act was only one of the grounds in which the bill had been quashed. It is held that the consumer had remitted all monthly bills without fail and that the consumer is not liable for the fault of licensee's people or equipments owned by the Board. Further, it was found that no notice of access or disconnection steps were seen taken as per Rules, if at all it was an instance where the readings could not be taken. Further, it was found that no meter test was conducted and the test report was not produced despite the request made by the complainant. The factual aspects involved in the present case also will disclose that the consumer was put to a surprise when, after a considerably long period, demand was made alleging that there was an audit report. In so far as the CGRF is concerned, the matter was considered in great detail and on all W.P.C.No.13339/2016 6 counts decided that the short assessment bill has to be quashed, I do not think that, in exercise of power under Article 226 of the Constitution of India, this Court should interfere with the same. This writ petition is hence dismissed. (sd/-) **==> picture [258 x 13] intentionally omitted <==** jsr