Court rules provisional assessment order invalid due to lack of statutory compliance under Section 126 of the Electricity Act, 2003.
In a significant ruling, the Himachal Pradesh High Court, presided over by Justice Ajay Mohan Goel, quashed a provisional assessment order issued against M/s Kundlas Loh Udyog by the Himachal Pradesh State Electricity Board Limited (HPSEBL). The order, dated 15th March 2021, demanded a hefty sum of Rs. 4,55,18,952 from the petitioner for alleged unauthorized use of electricity.
The case arose when HPSEBL, based on its records, claimed tampering of the energy meter installed at the petitioner’s premises, leading to under-recording of actual energy consumption between August 2014 and May 2015. The petitioner contested the provisional assessment, arguing that it was issued without adhering to the mandatory inspection requirements outlined in Section 126 of the Electricity Act, 2003.
The court found merit in the petitioner’s arguments, emphasizing that Section 126 mandates a provisional assessment based on an inspection of premises, equipment, or records maintained by the consumer, not solely on the electricity board’s records. The court underscored that the assessment order was issued in violation of this statutory provision, rendering it void ab initio.
Justice Goel highlighted the distinction between Sections 126 and 135 of the Electricity Act, noting that Section 126 deals with unauthorized use of electricity without theft and requires an inspection to determine such usage. The court referenced the Supreme Court’s interpretation, which aligns with this requirement for an inspection to initiate proceedings under Section 126.
The court dismissed the argument from HPSEBL that the provisional assessment was merely a preliminary step and not subject to judicial intervention. It held that a breach of statutory provisions at the provisional stage warranted quashing the order, as the illegality would not be rectified by subsequent final assessment.
In conclusion, the High Court set aside the provisional assessment order, directing that the statutory procedure be adhered to in future assessments. The decision reaffirms the necessity of following due process in administrative actions, ensuring that statutory safeguards for consumers are not bypassed.
Bottom Line:
Provisional assessment order under Section 126 of the Electricity Act, 2003 cannot be issued solely on the basis of records maintained by the Electricity Board. Such an order must be based on inspection of premises, equipment, or records maintained by the consumer, as per the statutory provisions.
Statutory provision(s): Electricity Act, 2003 - Section 126, Article 226 of the Constitution of India
