Bombay High Court Allows Writ Petitions Challenging Electricity Theft Assessment Orders — Lack of Proper Hearing and Violation of Natural Justice. Assessment under Section 126 of Electricity Act, 2003 set aside due to failure to provide adequate opportunity to the consumer.

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

The petitioners, Maharashtra State Electricity Distribution Company Ltd., filed two writ petitions challenging assessment orders passed by the Superintending Engineer (Appellate Authority) under Section 126 of the Electricity Act, 2003 for alleged theft of electricity. The petitioners contended that the assessment orders were passed without giving them a proper opportunity of hearing and that the provisional assessment notices were not served correctly. The respondents, including the consumers and the appellate authority, argued that the assessment was done in accordance with law. The court examined the records and found that the petitioners were not given adequate opportunity to present their case. The court held that the assessment orders were in violation of principles of natural justice and set them aside. The court directed the respondents to give a fresh opportunity of hearing to the petitioners and pass fresh assessment orders in accordance with law. The writ petitions were allowed with no order as to costs.

Headnote

A) Electricity Law - Theft of Electricity - Assessment under Section 126 - Natural Justice - The petitioners challenged assessment orders for alleged theft of electricity on the ground that they were not given a proper opportunity of hearing and the provisional assessment was not served correctly - The court held that the assessment orders were passed in violation of principles of natural justice and set them aside - The respondents were directed to give a fresh opportunity of hearing to the petitioners before passing fresh assessment orders (Paras 1-10).

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Issue of Consideration

Whether the assessment orders passed under Section 126 of the Electricity Act, 2003 for alleged theft of electricity are sustainable when the consumer was not given a proper opportunity of hearing and the provisional assessment was not served correctly.

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Final Decision

The writ petitions are allowed. The assessment orders are set aside. The respondents are directed to give a fresh opportunity of hearing to the petitioners and pass fresh assessment orders in accordance with law. No order as to costs.

Law Points

  • Natural Justice
  • Right to be heard
  • Electricity Theft Assessment
  • Section 126 Electricity Act 2003
  • Provisional Assessment
  • Final Assessment
  • Opportunity of hearing
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Case Details

2025 LawText (BOM) (11) 185

Writ Petition No.2481 of 2012 and Writ Petition No.2482 of 2012

0000-00-00

Maharashtra State Electricity Distribution Company Ltd.

Supreme Metal Industries, M/s. Geo Chem Laboratories Pvt. Ltd., and The Superintending Engineer, Appellate Authority

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Nature of Litigation

Writ petitions challenging assessment orders under Section 126 of the Electricity Act, 2003 for alleged theft of electricity.

Remedy Sought

Setting aside of the assessment orders and direction for fresh hearing.

Filing Reason

Assessment orders passed without proper opportunity of hearing and without proper service of provisional assessment.

Previous Decisions

Assessment orders passed by the Superintending Engineer (Appellate Authority) under Section 126 of the Electricity Act, 2003.

Issues

Whether the assessment orders under Section 126 of the Electricity Act, 2003 were passed in violation of principles of natural justice? Whether the petitioners were given adequate opportunity of hearing before the assessment orders were passed?

Submissions/Arguments

Petitioners argued that they were not given proper opportunity of hearing and provisional assessment was not served correctly. Respondents argued that assessment was done in accordance with law.

Ratio Decidendi

Assessment orders under Section 126 of the Electricity Act, 2003 must be passed after giving proper opportunity of hearing to the consumer. Failure to do so violates principles of natural justice and renders the assessment orders unsustainable.

Judgment Excerpts

The assessment orders were passed in violation of principles of natural justice. The respondents are directed to give a fresh opportunity of hearing to the petitioners before passing fresh assessment orders.

Procedural History

The petitioners filed writ petitions in the High Court of Judicature at Bombay challenging assessment orders passed by the Superintending Engineer (Appellate Authority) under Section 126 of the Electricity Act, 2003. The court heard the matter and allowed the petitions.

Acts & Sections

  • Electricity Act, 2003: 126
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