Court Rules Clause 22.3.3.3 of Terms and Conditions of Supply Invoked Without Jurisdiction; Dispute to be Resolved by Chief Electrical Inspector
In a significant judgment, the Andhra Pradesh High Court has quashed the back billing assessment against Rashtriya Ispat Nigam Ltd. (RINL) amounting to Rs. 5,27,66,471, ruling that the invocation of Clause 22.3.3.3 of the Terms and Conditions of Supply was without jurisdiction. The judgment was delivered by Justice Ninala Jayasurya, who emphasized that disputes regarding less recording by meters fall within the jurisdiction of the Chief Electrical Inspector to Government (CEIG) as per Section 26(6) of the Indian Electricity Act, 1910.
The case arose when RINL observed discrepancies between its SCADA system and the meters set up by the Eastern Power Distribution Company of Andhra Pradesh Ltd. The company reported these discrepancies, attributing them to defects in wiring rather than malfunctioning meters. Despite this, the respondent company issued a back billing assessment notice under Clause 22.3.3.3, which RINL challenged as being illegal and without jurisdiction.
In his judgment, Justice Jayasurya highlighted that the meter itself was not defective and that the less recording was due to wiring issues. He ruled that the appropriate course of action would have been to refer the matter to the CEIG, as mandated by the Indian Electricity Act. The court also noted that the responsibility for maintaining meters and wiring lay with the distribution company, and any defects should not result in financial liability for the consumer.
The judgment reaffirms the limited scope of judicial review in matters decided by expert bodies, but underscores the necessity of jurisdictional adherence in administrative decisions. This decision brings significant relief to RINL and sets a precedent for similar disputes in the sector.
Bottom line:-
Invocation of Clause 22.3.3.3 of Terms and Conditions of Supply for back billing assessed due to defects in wiring, not defective meters, held to be without jurisdiction. Disputes regarding less recording by meters fall under the purview of Chief Electrical Inspector to Government (CEIG) as per Section 26(6) of the Indian Electricity Act, 1910.
Statutory provision(s): Indian Electricity Act, 1910 Section 26(6), Terms and Conditions of Supply Clause 22.3.3.3, Indian Electricity Rules, 1956 Rule 30(1).
