ASSISTANT ENGINEER (D1), AJMER VIDYUT VITRAN NIGAM LIMITED & ANR. versus RAHAMATULLAH KHAN ALIAS RAHAMJULLA

ASSISTANT ENGINEER (D1), AJMER VIDYUT VITRAN NIGAM LIMITED & ANR. versus RAHAMATULLAH KHAN ALIAS RAHAMJULLA

The Court held that a sum becomes 'first due' only when the bill quantifying the charge is issued to the consumer and the two year limitation under Section 56(2) runs from that date; where an underbilling occurred by mistake the limitation for recovery of the additional demand runs from the date the mistake was discovered under s.17(1)(c) Limitation Act, 1963; while a licensee may raise supplementary demands after the two year period, it cannot resort to disconnection of electricity supply under Section 56(1)/(2) to recover such additional demand once the two year period has expired. In the present case the licensee discovered the mistake on 18.03.2014 and was barred from disconnection...

Parties
Appellant: ASSISTANT ENGINEER (D1), AJMER VIDYUT VITRAN NIGAM LIMITED & ANR.; Respondent: RAHAMATULLAH KHAN ALIAS RAHAMJULLA
Jurisdiction
India
Judgment Date
18 February 2020
Procedural Posture
Civil Appeal / Appeal From National Consumer Disputes Redressal Commission (order Dated 28.05.2018)
Outcome
Appeals disposed of
Legal Topics
Section 56(2) Interpretation ('first Due'), Disconnection of Electricity Supply, Supplementary/additional Demand, Mistake and Commencement of Limitation (limitation Act S.17(1)(c))
Electricity Law Limitation Law Consumer Law Section 56(2) Interpretation ('first Due') Disconnection of Electricity Supply Supplementary/additional Demand Mistake and Commencement of Limitation (limitation Act S.17(1)(c))

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Parties

ASSISTANT ENGINEER (D1), AJMER VIDYUT VITRAN NIGAM LIMITED & ANR.

Appellant

RAHAMATULLAH KHAN ALIAS RAHAMJULLA

Respondent

Procedural Posture

Civil Appeal / Appeal From National Consumer Disputes Redressal Commission (order Dated 28.05.2018)

Legal Issues

  1. 1 What is the meaning of 'first due' in Section 56(2) of the Electricity Act, 2003?
  2. 2 When does an amount become 'first due' where a wrong billing tariff has been applied due to mistake?
  3. 3 Whether a licensee may resort to disconnection of supply after lapse of two years in case of a mistake?

Ratio Decidendi

The Court held that a sum becomes 'first due' only when the bill quantifying the charge is issued to the consumer and the two year limitation under Section 56(2) runs from that date; where an underbilling occurred by mistake the limitation for recovery of the additional demand runs from the date the mistake was discovered under s.17(1)(c) Limitation Act, 1963; while a licensee may raise supplementary demands after the two year period, it cannot resort to disconnection of electricity supply under Section 56(1)/(2) to recover such additional demand once the two year period has expired. In the present case the licensee discovered the mistake on 18.03.2014 and was barred from disconnection...

Court Disposition

Appeals disposed of

Orders

  • The appeals are disposed of.
  • The licensee is barred from resorting to disconnection of electricity supply under Section 56(1)/(2) to recover the additional demand raised beyond the two year period.