Maharashtra

DCF, South Mumbai

CC/8/2012

CONSUMERS WELFARE ASSOCIATION & OTHERS - Complainant(s)

Versus

THE BRIHAN MUMBAI ELECTRIC SUPPLY& TRANSPORT UNDERTAKING (BEST) - Opp.Party(s)

29 Nov 2014

ORDER

SOUTH MUMBAI DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, SOUTH MUMBAI
Puravatha Bhavan, 1st Floor, General Nagesh Marg, Near Mahatma Gandhi Hospital
Parel, Mumbai-400 012
 
Complaint Case No. CC/8/2012
 
1. CONSUMERS WELFARE ASSOCIATION & OTHERS
402,B-WING,ASHOKA COMPLEX,JUSTICE RANADE ROAD,DADAR
MUMBAI-400028
MAHARASHTRA
...........Complainant(s)
Versus
1. THE BRIHAN MUMBAI ELECTRIC SUPPLY& TRANSPORT UNDERTAKING (BEST)
BEST BHAVAN,BEST MARG,COLABA
MUMBAI-400001
MAHARASHTRA
............Opp.Party(s)
 
BEFORE: 
 HON'ABLE MR. Satyashil M. Ratnakar PRESIDENT
 HON'BLE MR. S.G. CHABUKSWAR MEMBER
 
For the Complainant:
For the Opp. Party:
ORDER

PER SHRI. S.M. RATNAKAR – HON’BLE PRESIDENT

1) The Complainants have prayed that the demand raised of Rs.3,73,401.72 as per

provisional assessment bill by the Opposite Party against the Complainant No.2 for

unauthorized purpose be quashed. The Complainants also prayed that compensation

of Rs.20,000/- be awarded for the physical harassment and mental tension caused to

the Complainant No.2 and cost of this complaint.

2) According to the Complainants, the Complainant No.1 is Voluntary Consumer

Organization which has been espousing the cause of the consumers. The Complainant

No.2 is the actual aggrieved consumer in respect of the electric supply services

C.No8/2012

2

rendered by the Opposite Party. It is alleged that the present complaint is in respect of

unfair trade practice of the Opposite Party of deliberately raising false, bogus and

concocted bills. It is submitted that the Complainant No.2 is earning his livelihood by

selling water and he has small office with electric connection given by the Opposite

Party bearing Consumer No.361-111-004*3 which is in existence since April, 2004.

According to the Complainant, the Complainant No.2 received letter from the

Opposite Party dtd.11/07/2011 stating that an inspection had been carried out on

15/12/2010 and in view of the said inspection the demand for “unauthorized load” of

Rs.3,72,401.72 is being made. However, in the bill the said demand was made as the

supply was being used for “unauthorized purpose”. It is submitted that in the said

letter it was stated that an assessed the bill being raise, calculated “for a period of 12

months at two times the correct tariff.” Copies of the said letter and provisional

assessment bill are marked as Exh.‘A’ & ‘B’. The Complainant No.2 disputed the

said demand by letter dtd.27/07/2011 pointing out conflicting reasons had been given

for the said demand since the term “unauthorized load” and “unauthorized purpose”

had distinct and different meanings. The copy of the said reply is marked as Exh.‘C’.

It is submitted that in the reply letter issued by Complainant No.2, he had pointed out

that the sanctioned load is 5.630 Kw whereas the connected load is 3.937 Kw. It is

submitted that the said letter was also sent by the Complainant No.2 to the Assessing

Officer and to Consumer Grievance Redressal Forum of the Opposite Party. It is

alleged that the Consumer Grievance Redressal Forum of the Opposite Party sent

reply dtd.01/08/2011 stating that the dispute did not fall within its purview. The copy

of the said reply is marked as Exh.‘D’. The Assessing Officer by letter dtd.14/09/2011

replied that the Complainant No.2 falsely alleging that electricity was being used for

construction purpose, which constituted use for unauthorized purpose. The copy of

the said letter is marked as Exh.‘E’. It is case of the Complainants that the demand

made by the Opposite Party is false as there is no construction activity was undertaken

by the Complainant No.2. It is alleged that there is no question of any unauthorized

load as the connected load is less than sanctioned load and there is no question of any

different tariff rate being applicable as contended by the Opposite Party. The entire

demand is made mischievously for extraneous consideration. It is alleged that the

Opposite Party had threatened the Complainant No.2 to disconnect the supply for non

payment of the bill. The Complainants therefore, prayed for the reliefs as mentioned

C.No8/2012

3

in para 1 of this order.

3) The Opposite Party by filing written statement contested the claim. It is

contended that the complaint is misconceived, without merits and substance and liable

to be dismissed with compensatory cost. It is submitted that the Complainant No.2 is

having A/c. No.361-111-004*3 having Meter No.069138 for commercial purpose.

The Complainant No.2 being commercial consumer is not the consumer as defined

under Sec.2d(ii) under the Consumer Protection Act, 1986, (hereinafter referred to as

the Act). It is also contended that the complaint is filed regarding assessed bill

preferred on the Complainant No.2 under Sec.126 of the Electricity Act, 2003 and as

per the judgment of the Apex Court, in the case of U.P. Power Corporation Ltd. &

Ors. Vs. Anis Ahmed, the jurisdiction to entertain the complaint filed in the matter of

theft of electricity cannot be entertained by this Forum.

4) It is contended that the premises of the Complainant No.2 was surprisingly

checked by the Opposite Party on 15/12/2010 and it was found that at service position

there were two meters 1) Meter No. BO 97258 for temporary construction purpose

installed in the name of M/s. Quaswa Enterprise and 2) Meter No. NO 69138 having

A/c. No.361-111-004*3 in the name of Complainant No.2. It was noticed that supply

through Meter No.69138 was found being used for construction purpose. The

premises was again checked on 20/12/2010 and it was noticed that connected load

affected to the said meter was one ceiling fan, one lamp, three water pumps, four

halogen lamps and that four water pumps are used for construction purpose and

connected through the Meter No.69138. The copy of the reports submitted by the

concerned staff on visit are marked as Exh.‘III’. It is contended that M/s. Quasa

Enterprises vide requisition no.13128 dtd.05/05/2010 applied for temporary meter at

ground floor, Shri Bahavan, Jambhulwadi, Kalbadevi Road, Mumbai – 02 with

sanction load of 1.00 Kw. But due to non compliance of the requirements the said

requisition was cancelled. The copy of the cancelled requisition no.13128 is at

Exh.‘IV’. It is submitted that the above consumer again revived requisition no.18707

dtd.05/08/2010 by submitting the relevant documents for installation of meter

documents and temporary meter No. Bo 97259 having A/c. No.TIS/3131/10-11 was

installed on 06/10/2010. The consumer had deposited security deposit of Rs.7,000/-

and paid connection fee of Rs.250/-. The copies of the said receipts are marked as

Exh. V. It is contended that Meter No.69138 was installed for commercial purpose

C.No8/2012

4

and in the investigation by the Opposite Party it was found that supply was

unauthorisedly extended for construction purpose that being case of violation of tariff

of electric supply i.e. the supply used for the purpose other than for which uses of

electricity was authorized. According to the Opposite Party as the Complainant No.2

was involved in unauthorized use of supply the notice u/s.126 of Electricity Act, 2003

was issued to the Complainant No.2 dtd.30/12/201. However, there was no response

of the Complainant No.2 to the said notice and assessment bill dtd.11/07/2011 was

preferred to the Complainant for the period January, 2010 to December, 2010

amounting to Rs.3,73,401.72 at twice the rate applicable as per Electricity Act, 2003.

It is contended that the Complainant No.2 had disputed the bill by letter

dtd.27/07/2011 and the same was replied by Opposite Party on 14/09/2011. In the

said reply the Complainant No.2 was informed abut details of the assessed bills and it

was acknowledged by the representative of the Complainant No.2 Shri Afzalbhai on

the same day. It is denied that the demand of the assessment bill is made

mischievously for extraneous consideration. It is contended that as the Complainant

No.2 was making unauthorized used of supply for construction therefore, he was

properly charged for unauthorized used as mentioned in the letter issued by the

Opposite Party dtd.14/09/2011. It is contended that the complaint filed by the

Complainants is liable to be dismissed with cost.

5) The Complainant has filed affidavit of evidence. The Opposite Party has filed

affidavit of evidence of J.M. Latye, Dy. Engineer, Customer Care ‘C’ Ward. The

Complainant’s Representative Mr. Jehangir Gai filed written argument. The Opposite

Party has not filed separate written argument but filed pursis stating that the written

statement and the documents submitted with it be treated as written argument of the

Opposite Party and relied the judgment of the Hon’ble Supreme Court of India in

Civil Appeal No.5466 of 2012 in the case of U.P. Corporation Ltd. V/s. Anis Ahmed.

We have perused the documents filed by both sides. We heard oral argument of Shri.

Jehangir Gai, the Representative of the Complainant and Shri. P.V. Dhobale, Law

Officer of the Opposite Party.

6) While considering the case alleged by the Complainants that the demand made

by the Opposite Party is false as there was no question of any unauthorized load as

connected load was less than sanctioned load and there was no question of any

C.No8/2012

5

different tariff rate being applicable as contended by the Opposite Party and the entire

demand made by the Opposite Party is for extraneous consideration, therefore, in no

manner such use of electricity can be called as unauthorized one to attract the

provisions provided under Sec.126 to 135 of Electricity Act, 2003, for considering the

claim made by the Complainants it is necessary to be considered whether the

complaint filed by the Complainants before this Forum is maintainable or not ? In

this context the observations of the Hon’ble Supreme Court in Civil Appeal No.5466

of 2012 in the case of U.P. Power Corporation Ltd. V/s. Anis Ahmed, decided on

01/07/2013 which are relied by the Opposite Party are required to be taken into

consideration. The Hon’ble Supreme Court in the aforesaid case by considering the

provisions of Sec.126 & 127 of Electricity Act, 2003, held that Sec.126 of Electricity

Act, 2003 empowers the Assessing Officer to make assessment in case of

“unauthorized use of electricity”. It is also held that it provides that, if on an

inspection of any premises or after inspection of the equipments, gadgets, machines,

devices found connected or use, or after inspection of records maintained by any

person, the assessing officer comes to the conclusion that such person is indulging in

“unauthorized use of electricity”, he shall asses the electricity charges payable by such

person or by any other person benefited by such use. The Hon’ble Apex Court further

held that therefore, it is clear that after notice of provisional assessment to the person

indulging in unauthorized use of electricity, the final decision by an Assessing Officer,

who is a public servant, on the assessment of “unauthorized of electricity,” is a “Quasi

Judicial” decision and does not fall within the meaning of “Consumer Disputes” under

Sec. 2(1) (e) of the Consumer Protection Act, 1986. The Hon’ble Supreme Court

further held from a bare reading of Sec.126 & Sec.135 to 140, it is clear that while

acts of “unauthorized use of electricity” attracts civil consequences of penal charge of

electricity, twice the rate of electricity, for which assessment is made by the Assessing

Officer u/s.126; the very same acts of “unauthorized use of electricity”, constitute

“offences u/s.135 to 140 for which sentence and fine has been prescribed. The

Hon’ble Supreme Court by considering the provision of Sec.153 & 145 of Electricity

Act, 2003 also held that the Civil Courts jurisdiction to consider a suit with respect to

the decision of Assessing Officer under Sec.126, or decision of Appellate Authority

under Sec.127 is barred under Sec.145 of the Electricity Act, 2003. The Hon’ble

Supreme Court has specifically observed as under –

C.No8/2012

6

“The act of indulgence in “unauthorized use of electricity”

by a person, as defined in Clause (b) of the explanation below

Sec.126 of the Electricity Act, 2003 neither has any relationship

with “unfair trade practice” or ‘restrictive trade practice” or

‘deficiency in service” nor does it amounts to hazardous services

by the licensee. Such acts of “unauthorized use of electricity” has

nothing to do with charging price in excess of the price.

Therefore, acts of person in indulging in unauthorized use of

electricity do not fall within the meaning of “complaint”, as we

have noticed above and therefore, the “complaint” against the

assessment u/s.126 is not maintainable before the Consumer

Forum.

Considering the aforesaid observations and perusal of the documents placed on

record by the Opposite Party, it appears that while assessing the bill prepared under

Sec.126 of Electricity Act, 2003 of Rs.3,73,041.72 the Opposite Party found that the

Complainant was unauthorizedly extended the supply from original Meter No.

NO69138 which was installed for commercial purpose to construction purpose and

thereby made violation of tariff of electric supply for the purpose other than for which

the usage of electricity was authorized. It appears that accordingly the Opposite Party

had issued notice under Sec.126 of Electricity Act, 2003 to the Complainant No.2 vide

REF CCC (C)/Section 126/U 12/28/10/30/12/2010 and as there was no response to the

said notice from the Complainant No.2, the assessment bill under reference CC

(C)/ESL-14/Kdm-13/410494/2011, dtd.11/07/2011 as per Sec.126 of the Electricity

Act, 2003 was preferred to consumer (Complainant No.2) for the period January, 2010

to December, 2010 amounting to Rs.3,73,401.72 at twice the rate of applicable as per

Electricity Act, 2003, and thus, the validity of the action initiated by the Opposite

Party cannot be entertained by this Forum as alleged and submitted by the

Complainant’s representative. In our view objection raised by the Opposite Party

as regards maintainability of the complaint as the Complainants have challenged

the action taken by the Opposite Party under Sec.126 of Electricity in view of

the observations of the Hon’ble Supreme Court in para 47 (ii) in the above

quoted judgment which are as under is not maintainable. The Hon’ble Supreme Court

C.No8/2012

7

observed as under. –

“(ii) A “complaint” against the assessment made by the

Assessing Officer under Sec.126 or against the offences committed

under Sec.135 to 140 of the Electricity Act, 2003 is not

maintainable before a Consumer Forum.”

The contention therefore, raised by the Opposite Party in view of the judgment

passed by the Hon’ble Supreme Court, that the present complaint cannot be

entertained by this Forum as complaint itself is not maintainable can be said legal and

proper. In the result we pass the following order –

O R D E R

i. Complaint No.8/2012 is dismissed with no order as to cost.

ii. Certified copies of this order be furnished to the parties.

 
 
[HON'ABLE MR. Satyashil M. Ratnakar]
PRESIDENT
 
[HON'BLE MR. S.G. CHABUKSWAR]
MEMBER

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