State Electricity Regulatory Commission Not Empowered To Adjudicate Issues Related To Electricity Theft: Gujarat High Court

The Gujarat High Court has observed that the Electricity Regulatory Commission of the state can not adjudicate the electricity theft issues in the exercise of its powers under, the Electricity Act, 2003. 

The bench of Justice Nirzar S. Desai was dealing with a plea challenging an order of the Gujarat Electricity Regulatory Commission dismissing a plea moved by the petitioner challenging before it, the institution of an inquiry against him in connection with an electricity theft case.

The case in brief

Essentially, the petitioner was a consumer of Dakshin Gujarat Vij Co.Ltd. [a state-owned power distribution utility]. In December 2020, the petitioner was issued a supplementary bill for an amount of Rs.52,22,762.16 and Rs.7,93,566.00 towards compounding charges after it was found that he was involved in ''direct theft' of the electricity. The total amount that was required to be paid by the petitioner came out to be Rs.60,16,328.16

Aggrieved with the same, the petitioner moved a petition before the Gujarat Electricity State Regulatory Commission praying to institute an inquiry into the making out of false theft case against him on basis of mere imagination and issuing of huge supplementary bills ignoring the provisions of the prevailing rules, regulations and the law.

It was further prayed in the plea that pending admission and or final disposal of the petition, the Commission should recalculate the supplementary bill as a case of the defective meter. Certain other reliefs were also prayed for in the plea.

However, the commission dismissed the petition on the point of maintainability itself while noting that whether the act of the Petitioner would amount to "theft of energy" or not, cannot be adjudicated by this Commission in the exercise of the powers under, the Electricity Act, 2003.

The commission further emphasized that it is for the Special Court constituted under the Electricity Act, 2003 to look into the same and pass appropriate order either to entertain or reject the case of the Petitioner. Challenging this very order, the petitioner moved to the High Court.

High Court's observations

At the outset, the Court agreed with the opinion expressed by the commission that the issues related to the theft of electricity cannot be adjudicated by the Commission in the exercise of powers under the Electricity Act, 2003.

The Court observed thus as it noted that Section 86 of the Electricity Act (which deals with the Functions of the State Commission) doesn't make it a function of the commission to deal with such cases.  The Court also said that the petitioner's prayer for initiation of the inquiry can be made before the Special Court.

"Therefore, considering the clear and unambiguous language of section 86 of the Act, the Commission has rightly observed that Commission is not vested with the jurisdiction to consider the prayer of the petitioner...The Commission has also taken note of the fact that for the prayer made by the petitioner, a complete mechanism has been provided by the Electricity Act itself under Sections 135, 153 and 154 of the Act and the petitioner was required to approach Civil Court constituted under the Act which can decide the civil and criminal law" the Court said as it dismissed the instant plea. 

Case title - MITULBHAI RANCHODBHAI LAKHANI Versus GUJARAT ELECTRICITY REGULATORY COMMISSION [SPECIAL CIVIL APPLICATION NO. 20013 of 2022]

Case Citation: 2022 LiveLaw (Guj) 396

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