Case Note & Summary
The petitioner, Maharashtra State Electricity Distribution Company Ltd. (MSEDCL), challenged an order of the Consumer Grievance Redressal Forum (CGRF), Nanded Zone, which set aside the demand of interest and delayed payment charges (DPC) amounting to more than Rs.15,00,000/- raised against the respondent, a co-operative spinning mill. The respondent had applied for electricity supply from a 33 KV line, and a dedicated line was laid from the source. The respondent claimed that supply was not given from an express feeder. The bill for March 2016 included arrears, current charges, interest, and DPC totaling Rs.1,40,47,700/-. The respondent had never paid the entire bill amount. The CGRF set aside the interest and DPC. The High Court held that the CGRF exceeded its jurisdiction because the respondent had not paid the entire bill and the interest and DPC were governed by the terms and conditions of supply and MERC regulations. The court allowed the petition, set aside the CGRF order, and directed the respondent to pay the interest and DPC as per the bill.
Headnote
A) Electricity Law - Consumer Grievance Redressal Forum - Jurisdiction - Interest and Delayed Payment Charges - The CGRF set aside the demand of interest and DPC of more than Rs.15,00,000/- raised by MSEDCL against a co-operative spinning mill. The High Court held that the CGRF exceeded its jurisdiction as the respondent had not paid the entire bill amount and the interest and DPC were governed by the terms and conditions of supply and MERC regulations. The court allowed the petition and set aside the CGRF order. (Paras 2-5)
Issue of Consideration
Whether the Consumer Grievance Redressal Forum (CGRF) had jurisdiction to set aside the demand of interest and delayed payment charges (DPC) raised by the electricity distribution company against the consumer.
Final Decision
The petition is allowed. The order made by Consumer Grievance Redressal Forum, Nanded Zone in case No. 2/2016 is set aside. The respondent is directed to pay the interest and delayed payment charges as per the bill.
Law Points
- Jurisdiction of Consumer Grievance Redressal Forum
- Interest and Delayed Payment Charges in electricity supply
- Terms and conditions of supply
- Maharashtra Electricity Regulatory Commission regulations
Case Details
2017 LawText (BOM) (07) 1
Writ Petition No. 1216 of 2017
Mr. A.R. Salve, Advocate for petitioner
The Superintendent Engineer, Maharashtra State Electricity Distribution Company Ltd., Old Power House Compound, Jintur Road, Parbhani-431 401
Dr. Babasaheb Ambedkar Backward Class-C Co-operative Spinning Mill Ltd., situated at Peth-Shivni, Tal. Pallam, Dist. Parbhani through its Chairman Shri. K. Rangarajan
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Nature of Litigation
Writ petition challenging order of Consumer Grievance Redressal Forum (CGRF) setting aside demand of interest and delayed payment charges.
Remedy Sought
Petitioner (MSEDCL) sought setting aside of CGRF order and restoration of demand of interest and DPC.
Filing Reason
CGRF set aside the demand of interest and delayed payment charges of more than Rs.15,00,000/- raised by MSEDCL against the respondent.
Previous Decisions
CGRF, Nanded Zone, in case No. 2/2016 set aside the demand of interest and DPC.
Issues
Whether the CGRF had jurisdiction to set aside the demand of interest and delayed payment charges when the respondent had not paid the entire bill amount.
Whether the interest and DPC are governed by the terms and conditions of supply and MERC regulations.
Submissions/Arguments
Petitioner argued that the respondent had never paid the entire bill amount and the interest and DPC were as per terms and conditions of supply and MERC regulations.
Respondent did not appear despite service.
Ratio Decidendi
The Consumer Grievance Redressal Forum exceeded its jurisdiction by setting aside the demand of interest and delayed payment charges without considering that the respondent had not paid the entire bill amount and that such charges are governed by the terms and conditions of supply and MERC regulations.
Judgment Excerpts
The petition is filed by Maharashtra State Electricity Distribution Company, Parbhani, a State Government undertaking, to challenge the order made by Consumer Grievance Redressal Forum, ('CGRF' for short) Nanded Zone in case No. 2/2016. This Forum has set aside the demand of the amount of interest and delayed payment charges ('DPC' for short) made by the petitioner as against respondent and that amount was more than Rs.15,00,000/-.
The bill of charges of electricity consumption for March 2016 was issued by petitioner of Rs.1,40,47,700/- against the respondent. This bill includes the amount which was due for previous period as arrears and of current bill and it also included the interest and the DPC. It is the case of petitioner that the respondent had never paid entire amount demanded in the bill right from the beginning.
Procedural History
The petitioner filed a writ petition in the High Court of Bombay, Bench at Aurangabad, challenging the order of the Consumer Grievance Redressal Forum, Nanded Zone, dated not mentioned, in case No. 2/2016. Notice was issued and served on the respondent, but no one appeared. The court heard the petitioner's counsel and reserved judgment on July 6, 2017, and decided on July 12, 2017.
Acts & Sections
