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Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • Section 26(6) of the Indian Electricity Act, 1910 (hereinafter referred to as 'the Electricity Act')
  • Sections 32 and 33 of the Indian Arbitration Act along with Section 46 of the Arbitration Act
  • Section 5 (2) of the M. P. Electrical Undertaking Dues Recovery Act,
  • SECTION 46 ARBITRATION ACT
  • SECTION 26 ELECTRICITY ACT
  • provisions of Section 5(2) of the Recovery Act
  • Section 26(2) of the Indian Electricity Act
  • Section 26 (1) and (6) of the Electricity Act
  • Sections 32 and 33 of the Arbitration Act
  • Sec- tion 26 (6) of the Electricity Act
  • SECTION 32 ARBITRATION ACT
  • SECTION 34 ARBITRATION ACT
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • Section 26(6) of the Indian Electricity Act, 1910 (hereinafter referred to as 'the Electricity Act')
  • Sections 32 and 33 of the Indian Arbitration Act along with Section 46 of the Arbitration Act
  • Section 5 (2) of the M. P. Electrical Undertaking Dues Recovery Act,
  • SECTION 46 ARBITRATION ACT
  • SECTION 26 ELECTRICITY ACT
  • provisions of Section 5(2) of the Recovery Act
  • Section 26(2) of the Indian Electricity Act
  • Section 26 (1) and (6) of the Electricity Act
  • Sections 32 and 33 of the Arbitration Act
  • Sec- tion 26 (6) of the Electricity Act
  • SECTION 32 ARBITRATION ACT
  • SECTION 34 ARBITRATION ACT
Smart Summary

Factual and Procedural Background

This matter is a revision filed by the defendant against the order dated 12th December 1977 of the Court of Civil Judge, Class II, Bilaspur in Civil Suit No. 208-A of 1976. The underlying suit was instituted by the plaintiff seeking a declaration that the defendants were not entitled to recover Rs. 1,688.06 (paise) as energy charges and seeking a perpetual injunction restraining the defendants from disconnecting the plaintiff's electric connection for non-payment of that amount.

According to the plaintiff's plaint, the electric service connection (No. IP/72, 30 M.P.) at the plaintiff's oil mill at Bilha had been regularly checked by the defendants' officials, accepted monthly payments based on meter readings, and the meter was always found in proper order. The plaintiff contended that a supplementary bill dated 15-9-1976, demanding additional charges on the ground of a defective meter, was illegal and that threats of disconnection were unauthoritative.

The defendants resisted the suit and raised a preliminary objection of non-maintainability on two grounds: (a) the plaintiff had not complied with a condition precedent of depositing the suit amount as required by Section 5(2) of the M.P. Electrical Undertaking Dues Recovery Act; and (b) the dispute concerned whether the meter was defective, a matter falling under Section 26(6) of the Indian Electricity Act, 1910, which provides for decision by an Electrical Inspector. The trial court rejected both preliminary objections. The present revision challenges the trial court's order.

Legal Issues Presented

  1. Whether the dispute in the pleadings is a question as to whether the meter "is or is not correct" such that Section 26(6) of the Indian Electricity Act, 1910 is attracted and the matter must be decided by an Electrical Inspector.
  2. Whether, having regard to the nature of the dispute, the suit is barred by operation of Section 26(2) of the Electricity Act read with Sections 32 and 33 (and Section 46) of the Indian Arbitration Act, thereby precluding a civil suit.
  3. Whether the plaintiff's non-compliance with Section 5(2) of the M.P. Electrical Undertaking Dues Recovery Act rendered the suit not maintainable (this preliminary objection was raised by the defendants and rejected by the trial court; the rejection is noted but not contested on revision).

Arguments of the Parties

Defendant's (Appellant's) Arguments

  • The pleadings, read unequivocally, raise a dispute whether the meter was defective and not recording the correct consumption, thereby engaging Section 26(2) (as relied upon by the defendants) and Section 26(6) of the Electricity Act.
  • Because the dispute falls within the class of matters covered by Section 26 of the Electricity Act, arbitration provisions (referred to by the defense as Sections 32 and 33 of the Arbitration Act along with Section 46) apply and a civil suit is therefore barred.
  • The defendants also raised a preliminary objection that the plaintiff had not complied with Section 5(2) of the M.P. Recovery Act (deposit requirement), affecting maintainability of the suit.

Plaintiff's (Respondent's) Arguments

  • The dispute is not about a defect in the meter itself and therefore does not attract the arbitration route under Section 26(6) of the Electricity Act.
  • Even if the dispute related to meter correctness, the defendants' appropriate course, according to the plaintiff, would have been to make an application under Section 34 of the Arbitration Act without participating in the proceedings; defendants did not do so, and thus the suit should proceed.
  • Sections 32 and 33 of the Arbitration Act are not attracted because the plaintiff has not pleaded facts seeking a decision on the existence, effect or validity of an arbitration agreement or award; the necessary ingredients to invoke Section 32 are absent from the pleadings of both parties.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Gadag Betgiri Municipal Borough v. Government of Mysore, AIR 1962 Mys 209 Authority for the proposition that where a meter is itself correct (i.e., not defective) but the supply was manipulated so that more energy passed than registered, the meter remains "correct" and Section 26(6) cannot be invoked to refer the matter to the Electrical Inspector. The court relied on this decision to support its conclusion that the defect pleaded by the defendants (defective wiring / lack of 'Y' potential) did not render the meter incorrect for purposes of Section 26(6), and therefore that Section 26(6) was not attracted.

Court's Reasoning and Analysis

The court proceeded by focusing on the precise statutory language of Section 26(1) and Section 26(6) of the Electricity Act and then by comparing those provisions to the actual pleadings. Section 26(1) provides that, absent agreement to the contrary, the amount of energy supplied shall be ascertained by means of a correct meter. Section 26(6) states that when a difference or dispute arises as to whether a meter referred to in subsection (1) is or is not correct, the matter shall be decided, upon application of either party, by an Electrical Inspector.

The court framed the threshold enquiry as whether the difference or dispute alleged in the pleadings is about the meter "being correct" (i.e., a fault or defect in the meter itself). To resolve that question the court set out the relevant pleaded averments from both sides:

  • The plaintiff pleaded that the meter had been correctly installed, regularly checked by the defendants' staff, and found to be in proper order.
  • The defendants' written statement admitted there was no defect in the meter itself but averred that the meter recorded only one-third of actual consumption because the 'Y' potential was not provided to the meter (defective wiring), so the meter was not registering the total energy consumed.

On that factual matrix, the court reasoned that the ordinary meaning of "correct" in the statute is that the meter has no fault or defect. The court emphasized that the word "correct" used in subsections (1) and (6) must bear the same meaning in both contexts. It concluded that the defendants' own pleading admitted that the meter itself was not faulty; the problem arose from defective wiring which caused part of the consumption not to pass through the meter.

The court further relied on the statutory Explanation (to sub-section (7) of Section 26) stating that a meter shall be deemed "correct" if it registers the amount of energy supplied within prescribed limits of error. The court treated that Explanation as supporting the view that wiring defects or manipulation which prevent consumption passing through an otherwise functional meter do not render the meter "not correct" for the purpose of Section 26(6).

The court expressly cited the Division Bench decision in Gadag Betgiri Municipal Borough v. Government of Mysore (AIR 1962 Mys 209) as consistent authority: that where a meter is otherwise correct, manipulation of supply lines or other factors causing additional energy to pass would not convert an otherwise correct meter into an incorrect one so as to invoke the Inspector's jurisdiction under Section 26(6).

On this analysis the court held that because there was no dispute about the correctness of the meter itself, Section 26(6) of the Electricity Act was not attracted. The court therefore concluded that this single point disposed of the revision. It expressly stated that, in view of this conclusion, it was unnecessary to consider whether the suit was barred under Sections 32 and 33 read with Section 46 of the Arbitration Act.

Holding and Implications

Holding: The revision filed by the defendant is dismissed. The court found that Section 26(6) of the Indian Electricity Act is not attracted because the pleadings show no dispute that the meter itself was defective; instead the alleged shortfall in recorded consumption resulted from defective wiring (absence of 'Y' potential), which does not make the meter "not correct."

Implications:

  • Direct effect on the parties: the trial court's order (which had rejected the defendants' preliminary objections) is upheld by dismissal of the revision; the revision therefore fails and no further relief is granted to the defendants in this revision. The court made no order as to costs.
  • Scope of legal effect: the court did not state that it was establishing any broader new precedent beyond applying the cited authority (Gadag Betgiri Municipal Borough v. Government of Mysore) to the facts before it. The decision's immediate consequence is the maintenance of the trial court's position that Section 26(6) does not apply on the pleaded facts; the opinion did not purport to create or announce a novel rule beyond that application.

    M.P. Electricity Board, Jabalpur v. Chhaganlal Rameshwarlal Agrawal

    1. This is a revision by the defendant against the order dated 12th December, 1977 of the Court of Civil Judge, Class II, Bilaspur in Civil Suit No. 208-A of 1976.

    2. The revision has arisen out of the suit filed by the plaintiff/non-applicant herein, for a declaration that the defendants are not entitled to recover Rupees 1,688.06 paise as the energy charges from the plaintiff and for a perpetual injunction restraining the defendants from disconnecting the electric connection of the plaintiff for non-payment of the said amount.

    3. The case of the plaintiff, as set out in the plaint, was that since the installation of electric service connection Number IP/72, 30 M. P. on the Oil Mill premises of the plaintiff at Bilha, it was being regularly checked by the officials of the defendants and was always found to be in proper order and the defandants werp accepting the payment of monthly bills for the consumption of the electrical energy from the plaintiff according to the consumption of the energy registered by the meter, read, noted and signed by the officials of the defendant; that demand by the defendants vide their supplementary bill, dated 15-9-1976, for consumption of energy from the date of the installation on the ground that the meter was defective and not registering correct consumption, is illegal; there is no defect in the meter and as such the threat of the defendant to disconnect in case of default of payment of the said bill is also unauthoritative.

    4. The defendant while resisting the suit of the plaintiff raised a preliminary objection that the suit of the plaintiff was not maintainable for the reasons that :--

    (a) the plaintiff did not comply with the condition precedent of depositing the suit amount as required per Section 5 (2) of the M. P. Electrical Undertaking Dues Recovery Act, and

    (b) the dispute is regarding the defect in meter and Section 26(6) of the Indian Electricity Act, 1910 (hereinafter referred to as 'the Electricity Act') provides for settlement of such dispute by the arbitration of the Electrical Inspector.

    It may be mentioned that the trial Court rejected the preliminary objection on both the counts. The finding with regard to the non-maintainability of the suit on account of non-compliance with provisions of Section 5(2) of the Recovery Act is not challenged by the learned counsel for the applicants for different reasons; but all the same it is not necessary to deal with that question. The objection regarding the maintainability on account of Section 26(6) of the Electricity Act has been dismissed by the trial Court holding that this section is not attracted as

    "the pleadings of the parties in the suit in this connection are amply clear that there was no defect in the meter but the defendants alleged that there was defect in (its) using. Therefore, this naturally does away with the necessity of referring the matter to the Electrical Inspector."

    5. The submission of the learned counsel for the defendants was that according to the pleading of the parties unequivocally the dispute between the parties is on the question whether the meter was defective and not recording correct consumption of energy; and therefore, Section 26(2) of the Indian Electricity Act was attracted and therefore reading Sections 32 and 33 of the Indian Arbitration Act along with Section 46 of the Arbitration Act a Civil suit is barred.

    6. The argument of the learned counsel for the plaintiff in counter was that the dispute is not with regard to the defect in meter so as to attract the provisions relating to arbitration contained Section 26(6) of the Electricity Act. His further argument was that even on the assumption that the dispute was relating to the defect in the meter, the only course available to the defendants by virtue of Section 26(6) of the Electricity Act was to have made an application under Section 34 of the Arbitration Act without having participated in the proceedings, that having not been done by the defendants, the suit has to proceed. He further submitted that Sections 32 and 33 of the Arbitration Act are not attracted as the plaintiff has not made averment so as to solicit a decision upon the existence, effect or validity of an arbitration agreement or award. His submission was that none of the ingredients required to attract Section 32 of the Arbitration Act is present in the pleading of the plaintiff nor of the defendant.

    7. To appreciate the questions raised, it is advisable to set out Section 26 (1) and (6) of the Electricity Act hereinbelow :--

    "26. Meters:-- (1) In the absence of an agreement to the contrary, the amount of energy supplied to a consumer or the electrical quantity contained in the supply shall be ascertained by means of a correct meter, and the licensee shall, if required by the consumer, cause the consumer to be supplied with such a meter, XXXXX (6) Where any difference or dispute arises as to whether any meter referred to in Sub-section (1) is or is not correct, the matter shall be decided, upon the application of either party, by an Electrical Inspector, and where the meter has in the opinion of such Inspector ceased to be correct, such Inspector shall estimate the amount of the energy supplied to the consumer or the electrical quantity contained in the supply, during such time, not exceeding six months, as the meter shall not, in the opinion of such Inspector, have been correct; but save as aforesaid, the register of the the meter shall, in the absence of fraud, be conclusive proof of such amount or quantity;

    Provided that before either a licensee or a consumer applies to the Electrical Inspector under this sub-section, he shall give to the other party not less than seven days' notice of his intention so to do."

    The significant expressions relevant for the purpose in the forequoted sub-sections respectively are 'the supply shall be ascertained by means of a correct meter' and

    "when any difference or dispute arises as to whether any meter referred to in Sub-section (1) is or is not correct, the matter shall be decided, upon the application of either party, by an Electrical Inspector;"
    .

    8. It is in the light of the forequoted sub-sections that from the pleadings of the parties it has to be ascertained whether the difference or dispute between the parties is as to whether the meter "is or is not correct." Therefore, I would like to set out the relevant part of the pleadings of the parties :--

    "Plaint; (6} That on 17-9-1976, the plaintiff received by registered post a supplementary bill dated 15-9-1976, sent by the M. P. E. B. Vide this bill, the plaintiff has been asked to pay an additional amount of Rs. 1,482.50 N. P. as per supplementary bill vide peon book No. 496 dated 15--9-1976 as per order of the defendant No 2, the Divisional Engineer No. DEB/Rev/Tft/Bilha/14766, Bilaspur dated 14-9-1976. It is alleged by the defendants that the connections of the meter installed at the plaintiff's premises were found wrong and it has been found that the meter was recording only one third of the actual consumption. Therefore since the date of the connection itself in December 1973, the plaintiff has been held liable by the defen-

    (9) It is submitted that the meter has been installed by the officers and the employees of the defendants and the same was correctly installed as per their own report. The meter and the meter seals were further regularly checked and found correct each month by the staff of the defendants."

    "Written Statement; (3) The allegations in para 5 of the plaint that the plaintiff was not present at the time of inspection by the D. E. (Vig) Jabalpur are denied, the rest of the allegations are admitted. On inspection it was detected that 'Y' potential was not given to meter and that meter was moving on one phase only with 1KM 1 amp load, and as such the meter was recording only 1/3rd consumption of energy actually consumed by the consumer for his Oil Mill; the D. E. (Vigilance) referred the case to the D. E. (Testing) Bilaspur for his decision; on receipt of his opinion the correct consumption was calculated and supplementary bill for the balance amount was sent to the plaintiff for the period from the date of connection referred to in para 6 of the plaint.

    (4) The allegations in para 6 of the plaint are denied. It is submitted that the supplementary bill was issued to the plaintiff for the actual consumption of electricity. There was no defect in the meter as alleged but the meter was recording only one-third of the actual consumption because of defective wiring". In substance, the averments in the plaint amount to this that the meter was correct and registering correct consumption whereas, in substance, the pleading of the defendants is to the effect that there is not defect in the meter; the meter could register correct consumption of the energy but for the defective wiring. The grievance of the defendant is that as 'Y' potential was not given to meter and so it was moving on one phase only with 1 KM 1 amp load and, therefore, it was recording only one third consumption of the energy that was actually consumed.

    9. In the light of these averments in the pleadings, the question for decision that arises is whether when a meter does not record the actual energy not because of the defect in meter as such, but because of the defective wiring. Sec-

    tion 26 (6) of the Electricity Act is attracted?

    10. The word "correct" is used in Sub-section (1) as well as in Sub-section (6) of Section 26 of the Electricity Act. The context in which this word is used in both these sub-sections, same meaning has to be assigned to it. It is not a word of art and, therefore, it has to be understood in its ordinary meaning. In the common parlance, the expression "meter is correct" would mean that there is no fault or defect in the meter and the expression "meter is not correct" would mean that the meter is defective -- there is fault in the meter. If the pleadings of the parties are judged in this light, on defendants' own showing, in paragraph 4 of the written statement, there was no defect in the meter; the fault is in wiring due to which the total energy that was consumed by the consumer-plaintiff did not pass through that meter. In other words, because of the defective wiring, i.e., non-supply of 'Y' potential to the meter. This defect cannot be held to be a defect in meter. This view is buttressed from the Explanation to Sub-section (7) of Section 26 of the Electricity Act, the relevant part whereof reads as under :--

    "A meter shall be deemed to be "correct" if it registers the amount of energy supplied, or the electrical quantity contained in the supply, within the prescribed limits of error,....."

    The question who is responsible for the defective wiring is not material for the purpose of Section 26(6) of the Act. Even if it is a result of consumer's manipulation that the actual energy consumed is not allowed to pass through the meter which has no fault, it cannot be said that the meter is not correct so as to attract Section 26(6) of the Electricity Act. The view taken by me herein-

    above is in line with the view taken by the Division Bench of the Mysore High Court in Gadag Betgiri Municipal Borough v. Government of Mysore, AIR 1962 Mys 209. The relevant portions of this decision are set out hereinbelow (At p.

    211) :--

    "In my opinion, the legislative intent underlying Section 26(6) of the Act is similar. The only question into which thp Inspector or other authority functioning under that sub-section might investigate is, whether the meter is a false meter capable of improper use or (whether it registers -correctly and accurately the quantity of electrical energy passing through it. If. in that sense, the meter installed by respondent 2 in this case was a correct meter as it undoubtedly was and as it has been admitted to be, the fact that respondent 2, even if what the petitioner states is true, so manipulated the supply lines that more energy than what was consumed by the petitioner was allowed to pass through the meter, would not render the mete-which was otherwise correct, an incorrect meter.

    XXXXX This was, therefore, not a case in which the Inspector could do anything under Section 26(6) of the Act, since admittedly the meter registering the electrical energy supplied to the petitioner was in perfect condition, capable of registering accurately within the prescribed limits of error, the electrical energy supplied to the petitioner. The Electrical Inspector, therefore, rightly declined to exercise jurisdiction under Section 26(6) of the Act."

    11. Because I have taken a view that there is no dispute about the correctness of meter. Section 26(6) of the Electricity Act is not attracted and this point is enough to dispose of this revision. It is not necessary, in the light of this view, to go into the question whether the suit is barred under Sections 32 and 33 read with Section 46 of the Arbitration Act.

    12. In the result, the revision is dismissed. I, however, make no order as to costs.

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    Comments

    M.P. Electricity Board, Jabalpur v. Chhaganlal Rameshwarlal Agrawal
    (May 29, 1980)