Case Note & Summary
The petitioner, M/s Coventry Springs & Engineering Co. Ltd., challenged an order dated 8.4.1994 passed by the appellate authority under the Indian Electricity Act, 1910, which set aside the Electrical Inspector's decision and upheld a supplementary electric bill for Rs.5,53,661.26 for the period from August 1990 to January 1991. The dispute arose from an inspection on 20.1.1991, which revealed a defect in the electricity meter at the petitioner's factory: no voltage was received at the 'B' phase test terminal block, and the internal fuse of the C.T.P.T. unit for 'B' phase was blown, likely since July or August 1990. The Maharashtra State Electricity Board raised a supplementary bill on 27.4.1991. The petitioner made a representation on 8.5.1991, which was directed by the High Court in W.P. No. 1352 of 1991 to be decided as a dispute under Section 26(6) of the Act. The Electrical Inspector, by award dated 15.6.1992, reduced the bill to Rs.2,82,052, taking the date of dispute as 25.4.1991 and limiting the assessment to six months prior (up to 27.10.1990). The Board appealed, and the appellate authority (Minister) held that the meter ceased to be correct on 20.1.1991, so the six-month period should be counted prior to that date, restoring the original bill. The petitioner challenged this order. The court analyzed Section 26(6), which states that the amount of energy supplied during the period of defect shall be ascertained by the Electrical Inspector, and if the meter is found to be incorrect, the Inspector shall estimate the amount of energy supplied during the six months immediately preceding the date on which the dispute was raised. The court noted that the dispute was raised on 8.5.1991 (the date of representation), and therefore the six-month period should be counted from that date, not from the date of detection of the defect. The court held that the appellate authority erred in counting the period from 20.1.1991. Accordingly, the writ petition was allowed, the appellate authority's order was quashed, and the Electrical Inspector's award was restored.
Headnote
A) Electricity Law - Meter Dispute - Section 26(6) Indian Electricity Act, 1910 - Period of Six Months - The court considered whether the six-month period for assessment of energy supplied during meter defect should be counted from the date the dispute is raised or from the date the defect was detected. The court held that the period must be counted from the date the dispute is raised, i.e., the date of representation, and not from the date of detection of the defect. The appellate authority's order counting from the date of detection was set aside. (Paras 4-6)
Issue of Consideration
Whether the period of six months under Section 26(6) of the Indian Electricity Act, 1910 for assessing energy supplied during meter defect is to be counted from the date the dispute is raised or from the date the defect was detected.
Final Decision
The writ petition is allowed. The order dated 8.4.1994 passed by the appellate authority is quashed and set aside. The award dated 15.6.1992 passed by the Electrical Inspector is restored.
Law Points
- Section 26(6) Indian Electricity Act
- 1910
- period of six months prior to dispute
- date of dispute
- supplementary bill
- meter defect
- assessment period
