Case Note & Summary
The petitioner, Twenty First Century Wire Rods Limited, challenged a demand notice dated 22.09.2003 issued by respondent no.3 and the appellate order dated 2.3.2004 passed by respondent no.1 (the Administrator, Dadra Nagar Haveli) confirming the demand. The petitioner had been sanctioned a high tension load of 4000 KVA on 27.12.2001, and an agreement for electricity supply was executed on 11.11.2002, with power released on 13.11.2002. On 19.12.2002, the respondents raised a demand for Rs. 56,03,815.50 for Unit No.1 at Village Parzai. The petitioner challenged this demand by filing an appeal (Appeal No.1 of 2003) which was dismissed on 19.6.2003. The petitioner then filed Writ Petition No.4259 of 2003 in the Bombay High Court. During the pendency of that petition, on 17.7.2003, the meters were checked and found in order. However, on 1.9.2003, a fresh demand notice was issued for the same amount, which was challenged in the present writ petition. The appellate authority dismissed the appeal as time-barred. The High Court found that the demand notice was issued without any prior hearing, violating principles of natural justice. The court also noted that the appeal was filed within time from the date of receipt of the demand. The court quashed the demand notice and the appellate order, directing the respondents to give a hearing to the petitioner and pass a fresh order within four weeks.
Headnote
A) Electricity Law - Demand Notice - Natural Justice - Electricity Act, 2003 - Sections 56, 126 - The petitioner challenged a demand notice for Rs. 56,03,815.50 raised without prior hearing. The appellate authority confirmed the demand without considering the lack of hearing. The High Court held that the demand notice was issued in violation of principles of natural justice as no opportunity of hearing was afforded to the petitioner before raising the demand. The court quashed the demand notice and the appellate order, directing the respondents to give a hearing and pass a fresh order. (Paras 1-6) B) Electricity Law - Appeal - Limitation - Electricity Act, 2003 - Section 127 - The appellate authority dismissed the appeal as time-barred without considering the merits. The High Court noted that the appeal was filed within time from the date of receipt of the demand. The court held that the appellate authority ought to have considered the appeal on merits. (Paras 3-5)
Issue of Consideration
Whether the demand notice dated 22.09.03 and the appellate order dated 2.3.04 confirming it are sustainable when no opportunity of hearing was given to the petitioner before raising the demand.
Final Decision
The demand notice dated 22.09.2003 and the appellate order dated 2.3.2004 are quashed and set aside. The respondents are directed to give a hearing to the petitioner and pass a fresh order within four weeks.
Law Points
- Natural justice
- right to be heard
- Electricity Act 2003
- demand notice
- appeal
- writ petition
