Bombay High Court Quashes Supplementary Electricity Bill for 50 Months' Arrears Against Legal Heir Due to Lack of Notice and Limitation. Retrospective Demand for Arrears Beyond Two Years Held Barred Under Section 56 of Electricity Act, 2003, and Change of Meter Without Consumer's Knowledge Vitiated the Demand.

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

The petitioner, Mrs. Veena S. Bajaj, filed a writ petition challenging two electricity bills dated 24th November 2000 and 18th July 2001 issued by the Maharashtra State Electricity Board (respondent no.1), and the threatened disconnection of her electricity supply. The petitioner is the sister and legal heir of the deceased consumer, Prakash Kirpalani, who inherited the property from his mother, Padma Kirpalani, the original consumer. The first bill was a supplementary bill for Rs.75,142.78 for arrears of 50 months, and the second bill claimed further arrears. The petitioner alleged that the bills were illegal and without basis, as no prior notice was given to the deceased consumer or to her. She also contended that the meter was changed without her knowledge between September and November 2000. The respondent argued that the arrears were due from the deceased consumer and that the petitioner, as legal heir, was liable to pay. The court examined the provisions of the Electricity Act, 2003, particularly Section 56, which bars recovery of sums due after two years from the date they became due. The court found that the supplementary bill for 50 months' arrears was clearly beyond the limitation period. Moreover, the respondent had not issued any notice to the deceased consumer during his lifetime regarding the alleged arrears, nor had they given any opportunity of hearing to the petitioner before raising the demand. The court held that the demand was arbitrary and illegal. The court also noted that the change of meter without intimation to the consumer vitiated the demand. Consequently, the court quashed the impugned bills and directed the respondent not to disconnect the electricity supply of the petitioner on the basis of those bills. The petition was allowed with no order as to costs.

Headnote

A) Electricity Law - Arrears Recovery - Supplementary Bill - Section 56 of Electricity Act, 2003 - The respondent issued a supplementary bill for arrears of 50 months without prior notice or opportunity of hearing to the petitioner, who is the legal heir of the deceased consumer. The court held that such a demand is illegal and cannot be enforced, as the consumer was not given any notice of the alleged arrears during his lifetime. The court also noted that the change of meter without intimation to the consumer vitiates the demand. (Paras 2-5)

B) Limitation - Recovery of Electricity Dues - Section 56 of Electricity Act, 2003 - The supplementary bill claimed arrears for a period beyond two years from the date of the bill. The court held that under Section 56 of the Electricity Act, 2003, no sum due from any consumer shall be recoverable after a period of two years from the date when such sum became first due. Since the arrears pertained to a period prior to two years, the demand was barred by limitation. (Para 5)

C) Consumer Protection - Liability of Legal Heir - The petitioner, as legal heir of the deceased consumer, cannot be held personally liable for the alleged arrears without proper notice and opportunity. The court held that the respondent cannot disconnect the electricity supply of the petitioner for the alleged arrears of the deceased consumer without following due process. (Paras 4-5)

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Issue of Consideration

Whether the respondent could raise a supplementary demand for electricity arrears for a period of 50 months without prior notice and without affording an opportunity of hearing to the petitioner, who is the legal heir of the deceased consumer.

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Final Decision

The court allowed the petition, quashed the impugned bills dated 24th November 2000 and 18th July 2001, and directed the respondent not to disconnect the electricity supply of the petitioner on the basis of those bills. No order as to costs.

Law Points

  • Electricity dues cannot be recovered from a legal heir without prior notice and opportunity of hearing
  • Supplementary bill for arrears beyond two years is barred by limitation under Section 56 of Electricity Act
  • 2003
  • Change of meter without notice to consumer vitiates the demand
  • Liability of legal heir is limited to the estate of deceased and not personal.
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Case Details

2006:BHC-AS:4370-DB

Writ Petition No. 4387 of 2001

2006-03-06

V.G. Palshikar, V.R. Kingaonkar

2006:BHC-AS:4370-DB

Mr. F. Dubash with Ms. S. Das i/by Dunmorr Sett for the Petitioner, Mrs. A.R.S.Baxi for Respondent No.1, Mr. S.R.Nargolkar, AGP for Respondent No.2

Mrs. Veena S. Bajaj

The Maharashtra State Distribution Co. Ltd. & The State of Maharashtra

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Nature of Litigation

Writ petition challenging electricity bills and threatened disconnection

Remedy Sought

Quashing of bills dated 24th November 2000 and 18th July 2001, and injunction against disconnection

Filing Reason

Petitioner received supplementary bill for 50 months' arrears without prior notice and without opportunity of hearing

Issues

Whether the supplementary bill for 50 months' arrears is valid without prior notice and opportunity of hearing? Whether the demand for arrears beyond two years is barred by limitation under Section 56 of Electricity Act, 2003? Whether the change of meter without intimation to the consumer vitiates the demand?

Submissions/Arguments

Petitioner argued that the bills were illegal, without basis, and no notice was given to the deceased consumer or to her. Respondent argued that the arrears were due from the deceased consumer and the petitioner as legal heir is liable to pay.

Ratio Decidendi

A supplementary demand for electricity arrears for a period of 50 months without prior notice and without affording an opportunity of hearing to the consumer or his legal heir is illegal and cannot be enforced. Further, under Section 56 of the Electricity Act, 2003, no sum due from any consumer shall be recoverable after a period of two years from the date when such sum became first due. The change of meter without intimation to the consumer also vitiates the demand.

Judgment Excerpts

The Petitioner impugns electricity Bills dated 24th November, 2000 and 18th July, 2001 and action of Respondent No.1 causing disconnection of electricity supply. The Petitioner received a supplementary Bill dated 24th November, 2000 showing dues of Rs.75,142.78 p. for a period of 50 months prior. Under Section 56 of the Electricity Act, 2003, no sum due from any consumer shall be recoverable after a period of two years from the date when such sum became first due.

Procedural History

The petitioner filed Writ Petition No. 4387 of 2001 before the Bombay High Court challenging the electricity bills and threatened disconnection. The court heard the matter and delivered judgment on 6th March 2006.

Acts & Sections

  • Electricity Act, 2003: Section 56
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