Case Note & Summary
The petitioners, Maharashtra State Electricity Distribution Company Ltd. (MSEDCL), a Distribution Licensee under the Electricity Act, 2003, filed three writ petitions under Article 227 of the Constitution of India challenging the judgment and order of the Consumer Grievance Redressal Forum (CGRF) established under Section 42(5) of the Electricity Act. The CGRF had quashed and set aside the orders of the Internal Consumer Grievance Redressal Cell (ICGRC) which had rejected the claims of the respondents (consumers) for refund of meter cubicles and other instrument costs and infrastructural costs incurred by them while obtaining electricity connection. The CGRF allowed the consumers' claims for such refund. The common question of law was whether the Distribution Licensee is liable to refund the infrastructure costs paid by the consumers for a dedicated distribution transformer. The court held that under Sections 46 and 47 of the Electricity Act, the cost of providing a dedicated distribution transformer and associated infrastructure is to be borne by the consumer, and there is no provision in the Act or the Maharashtra Electricity Regulatory Commission (Distribution Licensee's Standards of Performance) Regulations, 2014 for refund of such costs. The court allowed the petitions, set aside the CGRF's order, and restored the ICGRC's orders rejecting the refund claims.
Headnote
A) Electricity Law - Consumer Grievance Redressal Forum - Jurisdiction - Section 42(5) Electricity Act, 2003 - The CGRF has jurisdiction to adjudicate disputes regarding refund of infrastructure costs incurred by consumers for electricity connection, but its order must be in accordance with the Act and Regulations. (Paras 3-5)
B) Electricity Law - Dedicated Distribution Transformer - Infrastructure Cost - Section 46, Section 47 Electricity Act, 2003 - The cost of providing a dedicated distribution transformer and associated infrastructure is to be borne by the consumer, and the Distribution Licensee is not obligated to refund such costs upon disconnection or otherwise. (Paras 6-10)
C) Electricity Law - Refund of Infrastructure Cost - No Provision - The Electricity Act, 2003 and the Maharashtra Electricity Regulatory Commission (Distribution Licensee's) Standards of Performance) Regulations, 2014 do not provide for refund of infrastructure costs paid by the consumer for obtaining a dedicated connection. (Paras 11-15)
Issue of Consideration
Whether the Consumer Grievance Redressal Forum (CGRF) has the jurisdiction to order refund of meter cubicles and other instrument costs and infrastructural costs incurred by consumers for obtaining electricity connection, and whether such costs are refundable under the Electricity Act, 2003.
Final Decision
The court allowed the writ petitions, set aside the impugned judgment and order of the CGRF, and restored the orders of the ICGRC rejecting the consumers' claims for refund.
Law Points
- Electricity Act
- 2003
- Section 42(5)
- Section 46
- Section 47
- Consumer Grievance Redressal Forum
- Dedicated Distribution Transformer
- Infrastructure Cost
- Refund
- Distribution Licensee
Case Details
2021 LawText (BOM) (01) 18
Writ Petition No.6382 of 2020, Writ Petition No.6383 of 2020, Writ Petition No.6384 of 2020
Mr. Avishkar S. Shelke for petitioners, Mr. A.S. Savale for respondents
The Maharashtra State Electricity Distribution Company Ltd. and others
M/s Deesan Agro Tech Ltd., M/s Nandi Tax Fab Ltd., M/s R.K. Agro Product
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Nature of Litigation
Writ petitions under Article 227 of the Constitution of India challenging the order of the Consumer Grievance Redressal Forum (CGRF) directing refund of infrastructure costs.
Remedy Sought
The Distribution Licensee (MSEDCL) sought quashing of the CGRF order and restoration of the ICGRC orders rejecting the consumers' refund claims.
Filing Reason
The CGRF allowed the consumers' claims for refund of meter cubicles and other instrument costs and infrastructural costs incurred for obtaining electricity connection, which the Distribution Licensee contended was not permissible under the Electricity Act.
Previous Decisions
The Internal Consumer Grievance Redressal Cell (ICGRC) had rejected the consumers' claims for refund. The CGRF set aside those orders and allowed the claims.
Issues
Whether the CGRF has jurisdiction to order refund of infrastructure costs incurred by consumers for obtaining electricity connection?
Whether the Distribution Licensee is liable to refund the cost of dedicated distribution transformer and associated infrastructure under the Electricity Act, 2003?
Submissions/Arguments
The Distribution Licensee argued that under Sections 46 and 47 of the Electricity Act, the cost of providing a dedicated distribution transformer is to be borne by the consumer, and there is no provision for refund.
The consumers argued that the CGRF correctly allowed the refund as the infrastructure costs were collected without authority.
Ratio Decidendi
Under Sections 46 and 47 of the Electricity Act, 2003, the cost of providing a dedicated distribution transformer and associated infrastructure for electricity connection is to be borne by the consumer, and there is no provision in the Act or Regulations for refund of such costs. The CGRF exceeded its jurisdiction in ordering refund.
Judgment Excerpts
In sum and substance, the arguments of Mr. A.S. Shelke, the learned Advocate for the Distribution Licensee are to the effect that on a request of the Consumers, it had provided electricity connection which was a Dedicated Distribution...
The cost of providing a dedicated distribution transformer and associated infrastructure is to be borne by the consumer, and the Distribution Licensee is not obligated to refund such costs upon disconnection or otherwise.
Procedural History
The consumers initially applied for electricity connection and paid for infrastructure costs. Their claims for refund were rejected by the ICGRC. They appealed to the CGRF, which allowed the claims. The Distribution Licensee then filed writ petitions under Article 227 before the High Court.
Acts & Sections
- Electricity Act, 2003: Section 42(5), Section 46, Section 47
- Constitution of India: Article 227
