Bombay High Court Quashes CGRF Clarification Order for Lack of Jurisdiction — Consumer Grievance Redressal Forum Cannot Review or Clarify Its Own Orders Under Electricity Act, 2003. CGRF's Order Directing MSEDCL to Refund Excess FAC Installments Set Aside as Without Authority of Law.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The Bombay High Court considered a writ petition filed by Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) challenging an order dated 8 March 2017 passed by the Consumer Grievance Redressal Forum (CGRF), Kalyan Zone, constituted under the Electricity Act, 2003. The background of the case involves a dispute between MSEDCL and the respondents, including M/s Technocraft Industries (I) Ltd., regarding the recovery of Fuel Adjustment Charges (FAC). The CGRF had earlier passed orders in favor of the consumer, which were confirmed by the Ombudsman. Subsequently, the consumer sought clarification from the CGRF regarding the implementation of those orders. The CGRF, while acknowledging that it had no power to review its own orders, proceeded to issue a 'clarification' directing MSEDCL to recover only six installments of FAC and refund any excess amount with interest, citing a MERC order dated 15/6/2012 in Case No.43/2012. The CGRF also warned that non-compliance would invite action under Section 142 of the Electricity Act. MSEDCL challenged this clarification order on the ground that the CGRF lacked jurisdiction to pass it. The High Court analyzed the provisions of the Electricity Act, 2003, particularly Section 42, which establishes the grievance redressal mechanism. The court noted that the CGRF is a first-level forum, and its orders are subject to review by the Ombudsman under Section 42(6). The CGRF itself has no power to review or clarify its own orders. The impugned order, though termed a 'clarification', effectively modified the earlier order and was therefore without jurisdiction. The court held that the CGRF cannot assume powers not conferred by the Act. Accordingly, the High Court quashed the impugned order dated 8 March 2017 and allowed the writ petition. The court also noted that the respondents were served but not represented.

Headnote

A) Electricity Law - Consumer Grievance Redressal Forum - Jurisdiction - Review/Clarification Powers - Electricity Act, 2003, Sections 42, 142 - CGRF has no power to review or clarify its own orders; only the Ombudsman can review CGRF orders under Section 42(6) of the Act. The impugned order, though termed a 'clarification', effectively reviewed the earlier order and was thus without jurisdiction. Held that the CGRF cannot assume powers not conferred by the Act (Paras 1-10).

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Issue of Consideration

Whether the Consumer Grievance Redressal Forum (CGRF) has the power to review or clarify its own orders under the Electricity Act, 2003.

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Final Decision

The High Court allowed the writ petition and quashed the impugned order dated 8 March 2017 passed by the Consumer Grievance Redressal Forum, Kalyan Zone.

Law Points

  • CGRF has no power to review or clarify its own orders
  • only Ombudsman can review
  • clarification order without jurisdiction is void
  • non-compliance of MERC order may attract Section 142 of Electricity Act
  • 2003
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Case Details

2023 LawText (BOM) (01) 77

Writ Petition No.7217 of 2018

2023-01-20

G.S. Kulkarni

2023:BHC-AS:3181

Mr. Rahul Sinha i/b. DSK Legal, for the Petitioner.

Maharashtra State Electricity Distribution Company Ltd. (MSEDCL)

M/s Technocraft Industries (I) Ltd., M/s Shanti Seva Nidhi, M/s B. M. S. Industries Ltd.

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Nature of Litigation

Writ petition challenging an order of the Consumer Grievance Redressal Forum (CGRF) that directed MSEDCL to comply with a MERC order regarding recovery of Fuel Adjustment Charges.

Remedy Sought

MSEDCL sought quashing of the CGRF's clarification order dated 8 March 2017.

Filing Reason

The CGRF passed a clarification order despite acknowledging it had no power to review its own orders, effectively modifying the earlier order without jurisdiction.

Previous Decisions

The CGRF had earlier passed orders in favor of the consumer, which were confirmed by the Ombudsman in Representation No.107/2016. The impugned order was a subsequent clarification sought by the consumer.

Issues

Whether the Consumer Grievance Redressal Forum (CGRF) has the power to review or clarify its own orders under the Electricity Act, 2003.

Submissions/Arguments

The petitioner (MSEDCL) argued that the CGRF had no jurisdiction to pass the clarification order as it had no power to review its own orders. The respondents were served but did not appear to contest the petition.

Ratio Decidendi

The Consumer Grievance Redressal Forum (CGRF) constituted under the Electricity Act, 2003 has no power to review or clarify its own orders. The power of review lies only with the Ombudsman under Section 42(6) of the Act. Any order passed by the CGRF in the nature of a clarification that effectively modifies an earlier order is without jurisdiction and liable to be quashed.

Judgment Excerpts

The CGRF although observed that it has no powers to review the orders passed by it on a complaint of the consumer-the Respondent herein, has passed the following detailed order, which is observed to be an order in the nature of a clarification:- We hereby clarify that MSEDCL has to comply with the order/ direction in the order of Hon’ble MERC dated 15/6/2012 in Case No.43/2012 as pointed out by consumer in the complaint.

Procedural History

The consumer (respondent) filed a complaint before the CGRF, which passed orders in favor of the consumer. The Ombudsman confirmed those orders in Representation No.107/2016. Subsequently, the consumer sought clarification from the CGRF regarding implementation. The CGRF passed the impugned clarification order on 8 March 2017. MSEDCL challenged this order by filing Writ Petition No.7217 of 2018 before the Bombay High Court, which was heard and decided on 20 January 2023.

Acts & Sections

  • Electricity Act, 2003: Section 42, Section 62(2), Section 142
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