Bombay High Court Dismisses MSEDCL's Petition Challenging Ombudsman's Order to Restore Consumer's Electricity Supply. The Court upheld the Ombudsman's jurisdiction to entertain billing disputes and direct reconnection without precondition of payment of disputed dues.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The judgment involves two writ petitions arising from the same order of the Electricity Ombudsman dated 17.10.2018. The first petition was filed by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) challenging the Ombudsman's order, and the second petition was filed by the consumer, M/s. Mahamaya Agro Industries, also challenging the same order but seeking its implementation. The consumer had moved the Ombudsman complaining of a billing dispute, alleging that the company had disconnected the electricity supply without proper notice and on the basis of an inflated bill. The Ombudsman, after hearing both parties, directed the company to restore the electricity supply to the consumer without insisting on payment of the disputed amount, holding that the dispute was a billing dispute and not a case of theft. The company argued that the Ombudsman had no jurisdiction to entertain the complaint as the dispute involved theft of electricity, which is outside the Ombudsman's purview. The consumer argued that the Ombudsman had correctly exercised jurisdiction and that the company's disconnection was illegal. The court analyzed the provisions of the Electricity Act, 2003, and the Maharashtra Electricity Regulatory Commission (Ombudsman) Regulations, 2006. It held that the Ombudsman has jurisdiction to entertain complaints regarding billing disputes and can direct restoration of supply pending resolution of the dispute. The court noted that the company had not proved theft through proper assessment under Section 126 of the Act. The court dismissed the company's petition and allowed the consumer's petition, directing the company to restore the electricity supply within two weeks.

Headnote

A) Electricity Law - Jurisdiction of Ombudsman - Billing Dispute - The Electricity Ombudsman has jurisdiction to entertain complaints regarding billing disputes under the Maharashtra Electricity Regulatory Commission (Ombudsman) Regulations, 2006. The Ombudsman can direct restoration of supply pending resolution of the dispute, as the dispute is not a case of theft or unauthorized use. (Paras 5-8)

B) Electricity Law - Restoration of Supply - Section 43 Electricity Act, 2003 - The right to receive electricity supply is a fundamental right under Section 43. Disconnection for non-payment of disputed bills is not permissible when the consumer has raised a bona fide dispute. The Ombudsman's order directing reconnection without precondition of payment of dues was upheld. (Paras 5-8)

C) Electricity Law - Theft - Section 135 Electricity Act, 2003 - The allegation of theft must be proved through proper assessment and proceedings under Section 126. Mere suspicion or irregularity in billing does not constitute theft. The Ombudsman correctly held that the dispute was a billing dispute and not a case of theft. (Paras 5-8)

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Issue of Consideration

Whether the Electricity Ombudsman has the jurisdiction to entertain a complaint regarding a billing dispute and direct restoration of electricity supply without insisting on payment of the disputed amount.

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Final Decision

The court dismissed the company's petition (WP 1588/2019) and allowed the consumer's petition (WP 4826/2019), directing the company to restore the electricity supply to the consumer within two weeks.

Law Points

  • Electricity Ombudsman jurisdiction
  • billing dispute
  • restoration of supply
  • Electricity Act 2003
  • Maharashtra Electricity Regulatory Commission (Ombudsman) Regulations 2006
  • Section 43
  • Section 56
  • Section 126
  • Section 135
  • Section 142
  • Section 146
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Case Details

2020 LawText (BOM) (01) 139

Writ Petition No.1588 of 2019 and Writ Petition No.4826 of 2019

2020-01-08

Ravindra V. Ghuge, J.

Shri S.V. Purohit (for Petitioner in WP 1588/2019 and Respondent No.2 in WP 4826/2019), Shri Aniket Waghdhare (for Respondent No.1 in both petitions), Shri R.D. Bhuibhar (for Respondent No.2 in WP 1588/2019 and Petitioner in WP 4826/2019)

Maharashtra State Electricity Distribution Company Limited (MSEDCL) (in WP 1588/2019); M/s. Mahamaya Agro Industries (in WP 4826/2019)

Electricity Ombudsman, Nagpur and M/s. Mahamaya Agro Industries (in WP 1588/2019); The Electricity Ombudsman and MSEDCL (in WP 4826/2019)

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Nature of Litigation

Writ petitions challenging the order of the Electricity Ombudsman regarding a billing dispute and disconnection of electricity supply.

Remedy Sought

MSEDCL sought quashing of the Ombudsman's order; Consumer sought implementation of the Ombudsman's order directing restoration of supply.

Filing Reason

The consumer filed a complaint before the Ombudsman against the company for disconnection of electricity supply on the basis of an inflated bill. The Ombudsman directed restoration of supply without precondition of payment. The company challenged the order on the ground of lack of jurisdiction.

Previous Decisions

The Electricity Ombudsman passed an order on 17.10.2018 directing the company to restore the electricity supply to the consumer without insisting on payment of the disputed amount.

Issues

Whether the Electricity Ombudsman has jurisdiction to entertain a complaint regarding a billing dispute and direct restoration of supply. Whether the disconnection of electricity supply by the company was legal.

Submissions/Arguments

The company argued that the Ombudsman has no jurisdiction as the dispute involved theft of electricity, which is outside the Ombudsman's purview. The consumer argued that the Ombudsman correctly exercised jurisdiction and that the company's disconnection was illegal.

Ratio Decidendi

The Electricity Ombudsman has jurisdiction to entertain complaints regarding billing disputes under the Maharashtra Electricity Regulatory Commission (Ombudsman) Regulations, 2006. The Ombudsman can direct restoration of supply pending resolution of the dispute, as the dispute is not a case of theft or unauthorized use. The right to receive electricity supply is a fundamental right under Section 43 of the Electricity Act, 2003, and disconnection for non-payment of disputed bills is not permissible when the consumer has raised a bona fide dispute.

Judgment Excerpts

The Ombudsman has jurisdiction to entertain complaints regarding billing disputes and can direct restoration of supply pending resolution of the dispute. The right to receive electricity supply is a fundamental right under Section 43 of the Electricity Act, 2003.

Procedural History

The consumer filed a complaint before the Electricity Ombudsman. The Ombudsman passed an order on 17.10.2018 directing restoration of supply. The company filed WP 1588/2019 challenging the order, and the consumer filed WP 4826/2019 seeking implementation. Both petitions were heard together and disposed of by this common judgment.

Acts & Sections

  • Electricity Act, 2003: Section 43, Section 56, Section 126, Section 135, Section 142, Section 146
  • Maharashtra Electricity Regulatory Commission (Ombudsman) Regulations, 2006:
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