Case Note & Summary
The case involves a dispute between the Municipal Corporation for Greater Bombay (BEST Undertaking) and Sharda Dyeing & Printing Works, a consumer of electricity. The consumer had three meters; one meter (0442967) showed a sudden drop in consumption from May 3, 1994. Upon inspection on December 7, 1995, it was found that the meter was under-recording consumption by 65.76% due to the secondary circuit of the current transformer being open on the red and yellow phases and a loose potential connection. The consumer did not dispute the fact of under-recording but argued that the defect was not due to any fault on its part and that it was not liable to pay for the unrecorded consumption. The BEST Undertaking issued a supplementary bill for the period from May 1994 to December 1995, which the consumer challenged. The court held that the consumer is liable to pay for the electricity actually consumed, even if the under-recording was due to a technical defect not attributable to the consumer. The court reasoned that the consumer had the benefit of the electricity and that the defect was discovered during a routine check. The court directed the consumer to pay the arrears in installments, with interest, and restrained the BEST from disconnecting supply subject to payment. The judgment emphasizes that the liability to pay for electricity consumed is not dependent on the correctness of the meter alone, and that the supplier is entitled to recover dues for unrecorded consumption where the fact of under-recording is admitted or proved.
Headnote
A) Electricity Law - Liability for Unrecorded Consumption - Loose Connection in Current Transformer - The court considered whether a consumer is liable to pay for electricity actually consumed but not recorded due to a technical defect (loose connection) in the metering equipment, absent any fraud. Held that the consumer is liable to pay for the actual consumption, as the defect was not attributable to the consumer and the electricity was admittedly used. The court directed the consumer to pay the arrears based on the estimated consumption for the period of under-recording. (Paras 1-10) B) Electricity Law - Section 26 of the Electricity Act, 1910 - Dispute as to Correctness of Meter - The court examined the scope of Section 26, which provides for testing of meters and determination of disputes. Held that the provision does not bar the supplier from recovering dues for unrecorded consumption where the meter is found to be under-recording due to a technical defect, and the consumer does not dispute the fact of under-recording. (Paras 5-8) C) Electricity Law - Burden of Proof - Consumer's Knowledge of Defect - The court noted that the consumer did not dispute the under-recording and had the benefit of the electricity. Held that the burden is on the consumer to show that the defect was not due to his fault, and in the absence of any evidence of tampering, the consumer must pay for the actual consumption. (Paras 6-9)
Issue of Consideration
Whether a consumer is liable to pay for electricity consumed but not recorded due to a loose connection in the secondary circuit of the current transformer, even in the absence of any fraud or malpractice on the part of the consumer.
Final Decision
The court allowed the writ petition in part, directing the consumer to pay the arrears for the unrecorded consumption in installments with interest, and restrained BEST from disconnecting supply subject to compliance with the payment schedule.
Law Points
- Electricity supply
- under-recording of consumption
- loose connection
- current transformer
- potential connection
- liability of consumer
- absence of fraud
- Section 26 of the Electricity Act
- 1910
- Section 24 of the Indian Electricity Act
- Bombay Municipal Corporation Act
- 1888
