If Period Of Unauthorised Use Of Electricity Can't Be Ascertained, Charges Will Be Assessed For 12 Months Preceding Inspection: Kerala HC

The Division Bench of Chief Justice Nitin Jamdar and Justice S Manu referred to Section 126 (5) of the Electricity Act of 2003 and held thus:

“Therefore, the crucial factual aspect to be ascertained for the purpose of assessment is the point of time from which unauthorised use of electricity has taken place. If the said point of time is indistinct or unascertainable, only option under law is to make assessment for a period of twelve months preceding the date of inspection. Hence, if a consumer has disagreement with assessment made for a period of twelve months prior to the date of inspection, it is incumbent on the consumer to prove the point of time of actual commencement of unauthorised consumption.”

The Anti Power Theft Squad (APTS), of the Kerala State Electricity Board (KSEB) conducted a surprise visit at the office of the appellant society on October 9,2014. It was found that the additional load was being used without sanction. A final assessment bill was issued by the KSEB which was challenged before the State Electricity Appellate Authority. The KSEB carried out an assessment of twelve months preceding the inspection date to prepare the final bill as per Section 126.

The Appellate Authority set aside the final assessment bill and reassessment was ordered by limiting the assessment period to around four months (16 June 2014 to 9 October 2014).

The KSEB challenged the reassessment in a writ petition and the High Court set aside the reassessment order and the final assessment bill was restored. The appellant society has preferred a writ appeal challenging the final assessment bill.

The appellant society contended that assessing unauthorised use for a period of 12 months is unjust and illegal.

On the other hand, the KSEB contended that the assessment was conducted as per Section 126 (5) of the Act. It was stated that since period of unauthorised use of electricity could not be ascertained, such period was limited to 12 months immediately preceding the inspection date as per Section 126 (5).

Section 126 deals with assessment. The Court referring to Section 126 (5) of the Act stated that it contemplates two situations, firstly, when period of unauthorized use of electricity is ascertainable and secondly, when such period of unauthorized use of electricity is not ascertainable.

The Court stated that in situations where unauthorized use of electricity cannot be ascertained, such period shall be limited to a period of 12 months immediately preceding the date of inspection.

As such, the Court dismissed the appeal.

Counsel for Appellant: Advocates Albin T O, Umamaheswary P.M

Counsel for Respondents: Senior Advocates Raju Joseph, P B Krishnan, Advocate B Premod, Standing Counsel Joseph Antony

Case Number: WA NO. 1588 OF 2024

Case Title: Secretary, Trichur Tennis Trust v The Assistant Engineer

Citation: 2024 LiveLaw (Ker) 668

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