Court Upholds Presumption of Meter Accuracy, Rejects Speculative Billing by West Bengal State Electricity Distribution
In a significant ruling, the Calcutta High Court has dismissed an appeal by the West Bengal State Electricity Distribution Company Limited (WBSEDCL) against a previous order that declared the company's supplemental billing demand void. The case, West Bengal State Electricity Distribution v. Jyotish Chandra Rice Mill, involved a disputed electricity bill issued to a rice mill in Jamalpur, Purba Bardhaman.
The bench, comprising Justices Rajarshi Bharadwaj and Uday Kumar, reaffirmed the presumption of meter accuracy under the West Bengal Electricity Regulatory Commission (WBERC) Regulations. The court observed that any deviation from this presumption must be clinically proven, thereby invalidating WBSEDCL's claim of meter defect based on speculative reports.
The genesis of the dispute traces back to July 2019, when WBSEDCL replaced a transformer at the rice mill. For the following months, the mill's energy consumption was recorded and billed without issue. However, in November 2019, WBSEDCL issued revised bills totaling over Rs. 55 lakh, citing a technical inspection that alleged a "polarity reversal" in the meter, resulting in under-recorded consumption.
The rice mill challenged the revised billing, and the Electricity Ombudsman initially upheld the demand despite acknowledging a lack of evidence for defect rectification. The High Court, in its judgment, labeled this decision as "patent perversity," emphasizing the necessity for concrete evidence to override the statutory presumption of a correct meter.
The court further highlighted that administrative orders cannot be supplemented with fresh reasons during litigation, as stipulated in the landmark Supreme Court case, Mohinder Singh Gill v. Chief Election Commissioner. It also ruled that accessory liabilities, such as Late Payment Surcharges (LPSC), cannot exist without a valid principal demand.
As a result of this ruling, WBSEDCL's supplemental demand was declared null and void, with the court directing the company to waive associated surcharges and adjust any payments made under protest against future bills. All disconnection notices issued to the rice mill were also quashed.
This judgment reinforces the legal protections afforded to consumers against arbitrary billing practices and underscores the requirement for utilities to substantiate claims of meter defects with verified evidence.
Bottom Line:
The supplemental demand by the electricity licensee (WBSEDCL) based on speculative and unverified reports of meter defect is declared void ab initio. The presumption of meter accuracy cannot be displaced without clinical proof of both the defect's onset and its rectification.
Statutory provision(s): WBERC Regulations 3.3.1, WBERC Regulations 3.6.1
