Case Note & Summary
The petitioner, Vishwas Concrete Products Private Limited, is a company engaged in the business of running a concrete mixing industrial unit. It had two electricity connections with BESCOM. BESCOM issued demand notices alleging theft of electricity based on alleged meter tampering. The petitioner challenged these notices in two writ petitions. The court examined the facts and found that the meters were in working condition and no pilferage was detected. The court held that the burden to prove theft lies on BESCOM and that mere suspicion or irregular readings without evidence of tampering cannot sustain a demand. The court also noted that BESCOM failed to issue a proper show cause notice before making the provisional assessment. Consequently, the court quashed the demand notices and directed BESCOM to refund any amounts collected.
Headnote
A) Electricity Law - Theft of Electricity - Section 135 Electricity Act, 2003 - Burden of Proof - The court held that the burden to prove theft of electricity lies on the electricity company. Mere suspicion or irregular readings without evidence of tampering or pilferage cannot sustain a demand for theft. (Paras 1-16) B) Electricity Law - Provisional Assessment - Section 126 Electricity Act, 2003 - Show Cause Notice - The court held that a provisional assessment under Section 126 must be based on objective material and a show cause notice must be issued before final demand. Failure to do so renders the demand arbitrary. (Paras 1-16) C) Electricity Law - Meter Tampering - Requirement of Proof - The court held that for a demand under Section 135, the electricity company must prove that the meter was tampered with or that there was unauthorized use of electricity. Absence of such proof leads to quashing of the demand. (Paras 1-16)
Issue of Consideration
Whether the demand notices issued by BESCOM for alleged theft of electricity based on meter tampering are sustainable when the meter was found to be in working condition and no pilferage was detected.
Final Decision
The court quashed the demand notices and directed BESCOM to refund any amounts collected from the petitioner.
Law Points
- Electricity theft
- tampering of meter
- burden of proof
- Section 126 Electricity Act
- 2003
- Section 135 Electricity Act
- provisional assessment
- show cause notice
- natural justice
