Consumer Fora Lack Jurisdiction To Deal With Offences Under Electricity Act, 2003: Bihar State Commission

Brief Facts:

The Complainant had taken an electricity supply connection for his wheat crushing machine from North Bihar Power Distribution Company (“Distributor”), with a crushing capacity of 24 tons per day. He regularly paid his electricity consumption bills. In January 2021, the Distributor sent him a bill of Rs. 2,54,432/-, payable by 28.02.2021. Meanwhile, the Distributor also disconnected the Complainant's supply line two days before the payment deadline, causing him a loss of Rs. 20,16,000/-. Feeling aggrieved, the Complainant filed a consumer complaint before the District Consumer Disputes Redressal Commission, Supaul, Bihar (“District Commission”).

The District Commission allowed the complaint and ordered the Distributor to restore the Complainant's electricity supply within 15 days without any charges. In case the supply had already been restored with charges, the Distributor was directed to refund the amount within 15 days. Additionally, the Distributor was ordered to pay Rs. 20,000/- as compensation for physical and mental harassment and Rs. 2,500/- as litigation costs to the Complainant.

Dissatisfied with the order of the District Commission, the Distributor filed an appeal before the State Consumer Disputes Redressal Commission, Bihar (“State Commission”). The Distributor contended that the Complainant was a defaulter in bill payments, leading to the disconnection of his line. It claimed that the Complainant deposited the dues and restoration fees on 06.03.2021, after which his electricity supply was restored. Further, the jurisdiction of the District Commission was barred due to the applicability of the Electricity Act, 2003.

Observations by the Commission:

The State Commission considered the contentions put forth by the Distributor that the District Commission lacked jurisdiction over the dispute. It referred to the Supreme Court's decision in U.P. Power Corporation Ltd & Ors Vs. Anis Ahmad [(2013) 13 S.C.R 388], which stated that consumer forums under the Consumer Protection Act, 1986, do not have jurisdiction to entertain complaints against assessments made under Section 126 or actions taken under Sections 135-140 of the Electricity Act, 2003.

The State Commission noted that the electric supply connection was used by the Complainant for a commercial purpose, making this legal position relevant to the present case. The bench also accepted the Distributor's contention that this position of law remained unchanged despite recent amendments to the Consumer Protection Act, of 1986.

Consequently, the State Commission held that the District Commission had no jurisdiction over the subject matter of this case. Consequently, the appeal was allowed, and the impugned order was set aside.

Case Title: North Bihar Power Distribution Co. Ltd. and Anr. vs Kartik Prasad Gupta

Case No.: Appeal No. 04 of 2022

Date of Pronouncement: June 19th, 2024