Case Note & Summary
The judgment concerns a batch of writ petitions filed by consumers (petitioners) against the Assistant Divisional Engineer and others (respondents) challenging final assessment orders passed under Section 126 of the Electricity Act, 2003 for alleged unauthorized use of electricity. The petitioners are residents of various villages in Maharashtra who received final assessment orders demanding large sums for alleged theft or unauthorized use. The common grievance was that no provisional assessment notice was served on them, and they were not given any opportunity of hearing before the final assessment orders were passed. The court examined the procedure under Section 126, which requires the assessing officer to first make a provisional assessment and serve a notice on the consumer, calling for objections. After considering the objections, a final assessment order must be passed, which should be a speaking order. The court found that in all these cases, the respondents failed to follow this procedure. The provisional assessment notices were not served, and no opportunity of hearing was given. Consequently, the final assessment orders were quashed, and the matters were remanded back to the assessing officers to pass fresh orders after following due process. The court also directed that the petitioners be given an opportunity to file objections and be heard before any fresh assessment order is passed. The petitions were allowed with no order as to costs.
Headnote
A) Electricity Law - Assessment of Unauthorized Use - Section 126 Electricity Act, 2003 - Natural Justice - Provisional Assessment Notice - The court considered whether a final assessment order under Section 126 can be passed without serving a provisional assessment notice and without giving an opportunity of hearing. Held that the procedure under Section 126 requires a provisional assessment notice to be served on the consumer, and a final assessment order can only be passed after giving the consumer an opportunity of hearing. Failure to do so vitiates the order. (Paras 10-15) B) Electricity Law - Assessment of Unauthorized Use - Section 126 Electricity Act, 2003 - Speaking Order - The court held that the final assessment order must be a speaking order giving reasons for the assessment. The order must consider the consumer's objections and evidence. (Para 16) C) Electricity Law - Assessment of Unauthorized Use - Section 126 Electricity Act, 2003 - Limitation - The court observed that the assessment proceedings must be completed within a reasonable time. However, no specific limitation period is prescribed under Section 126. (Para 18)
Issue of Consideration
Whether the final assessment orders passed under Section 126 of the Electricity Act, 2003 without serving a provisional assessment notice and without affording an opportunity of hearing to the petitioners are sustainable in law.
Final Decision
The court allowed the writ petitions, quashed the final assessment orders, and remanded the matters back to the assessing officers to pass fresh orders after serving provisional assessment notices and giving the petitioners an opportunity of hearing. No order as to costs.
Law Points
- Natural justice
- Right to be heard
- Electricity Act 2003 Section 126
- Provisional assessment notice
- Final assessment order
- Show cause notice
- Opportunity of hearing
- Speaking order
- Unauthorized use of electricity
