Case Note & Summary
The petitioners, City Center Mall Private Limited and Shrirang Sarda, filed a writ petition under Article 226 of the Constitution of India before the Bombay High Court challenging a provisional assessment order dated 30th June 2023 passed by the Superintending Engineer (Assessing Officer) of Maharashtra State Electricity Distribution Company Limited (MSEDCL) under Section 126 of the Electricity Act, 2003. The assessment was for alleged unauthorized use of electricity. The petitioners contended that the Assessing Officer did not give any prior notice or opportunity of hearing before making the provisional assessment, thereby violating principles of natural justice. The respondents argued that Section 126 does not mandate a prior hearing and that the assessment was based on inspection findings. The court examined the language of Section 126(1), which states that the Assessing Officer shall assess the electricity charges after giving the person a reasonable opportunity of being heard. The court held that the requirement of a reasonable opportunity of being heard is mandatory and must be afforded before the provisional assessment is made. Since no notice or hearing was given, the assessment order was quashed. The court directed the Assessing Officer to issue a fresh notice, provide an opportunity of hearing, and then pass a fresh assessment order. The petition was allowed with no order as to costs.
Headnote
A) Electricity Law - Theft of Electricity - Section 126 of the Electricity Act, 2003 - Provisional Assessment - The court considered whether a provisional assessment under Section 126 can be made without prior notice and opportunity of hearing. The court held that the Assessing Officer must give a notice and opportunity of hearing before making a provisional assessment, as the provision requires a 'reasonable opportunity of being heard' and the assessment is based on the consumer's explanation. The impugned assessment order was quashed for violation of natural justice. (Paras 1-10) B) Natural Justice - Right to Hearing - Section 126 of the Electricity Act, 2003 - The court held that the requirement of 'reasonable opportunity of being heard' under Section 126(1) is mandatory and cannot be dispensed with. The Assessing Officer must issue a show-cause notice and consider the consumer's response before making a provisional assessment. Failure to do so renders the assessment order void. (Paras 5-9)
Issue of Consideration
Whether the provisional assessment under Section 126 of the Electricity Act, 2003 can be made without giving prior notice and opportunity of hearing to the consumer.
Final Decision
The Bombay High Court allowed the writ petition, quashed the provisional assessment order dated 30th June 2023, and directed the Assessing Officer to issue a fresh notice, provide an opportunity of hearing to the petitioners, and then pass a fresh assessment order in accordance with law. No order as to costs.
Law Points
- Natural justice
- Electricity Act 2003 Section 126
- Provisional assessment
- Opportunity of hearing
- Prior notice
