AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • Section 26(6) of the Indian Electricity Act, 1910 (hereinafter referred
  • Sub-section (6) of Section 26
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • Section 26(6) of the Indian Electricity Act, 1910 (hereinafter referred
  • Sub-section (6) of Section 26
Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

The petitioner, Basantibai, proprietor of Santosh Industries in Indore, held service connection No. 192352 for a 30 H.P. load used to run an oil-mill. The Madhya Pradesh Electricity Board (respondent 1), as licensee, installed and owned the electricity meter that recorded energy supplied to the petitioner.

The petitioner reports that on 18-2-1983 the meter "got burnt" and she immediately informed the Assistant Engineer (respondent 4). On 1-3-1983 she was directed to deposit Rs. 433 as the price of the meter and Rs. 44 as connection charges, which she paid the same day. Despite payment, the Board did not restore supply by installing a replacement meter.

Instead, by a registered letter dated 4-3-1983 (Annex. E) the respondent called upon the petitioner to pay a supplementary bill dated 2-3-1983 (Annex. F) for Rs. 12,346.10 paise. The supplementary bill was stated to be based on a finding that one phase of the supply was not working and the meter had therefore only recorded two phases. The petitioner challenged Annex. E and Annex. F as illegal by the petition now before the court.

The respondents' return avers that on 17-2-1983 a check found one phase not working; they allege the meter's body seals were broken and that the meter may have been tampered with or intentionally burnt by the petitioner or her associates to avoid liability. They state a checking party removed the meter on 19-2-1983 in the presence of the petitioner's husband, recorded a reading of 29929, and prepared a Panchnama which the husband allegedly refused to sign.

Legal Issues Presented

  1. Whether the respondent Board could prepare and insist upon payment of a supplementary or revised bill (Annex. F) claiming unrecorded consumption and require payment as a condition precedent to restoring electrical supply, without referring the dispute to the Electrical Inspector under Section 26(6) of the Indian Electricity Act, 1910.
  2. Whether, in the absence of an adjudication by the Electrical Inspector and absent proven fraud, the meter register is conclusive proof of consumption such that the Board cannot treat the meter as incorrect, levy a supplementary charge and withhold reconnection.
  3. Whether allegations of tampering or fraud made by the respondents can justify the Board's unilateral action (issuing the supplementary bill and withholding reconnection) without following the statutory procedure prescribed in Section 26 of the Act.

Arguments of the Parties

Petitioner's Arguments

  • The petitioner had paid the meter price and connection charges and repeatedly requested restoration; she cannot be compelled to pay the supplementary bill prior to reconnection.
  • Section 26(6) of the Indian Electricity Act, 1910 makes the meter register conclusive evidence of consumption in the absence of fraud, and any dispute as to the correctness of the meter must be decided by the Electrical Inspector.
  • The proviso to Section 26(4) prevents the licensee from removing a meter when a dispute under Section 26(6) has arisen until the matter is determined by the Electrical Inspector; thus the Board could not remove or act upon the meter absent such determination.
  • The petitioner has been regularly depositing electric bills and has not disputed meter readings; therefore the Board's action in withholding supply is improper.

Respondents' Arguments

  • On checking (17-2-1983) one out of three phases was not working and therefore one-third of actual consumption would not have been recorded; the Board is justified in preparing a supplementary bill by recalculating averages and adding one-third to account for the non-recording.
  • The respondents allege tampering and possible deliberate burning of the meter by the petitioner or her associates. They contend the body seals were broken and that this constituted prima facie fraud.
  • The petitioner (through her husband) allegedly refused to produce production records and refused to sign the Panchnama; the Board relies on absence of cooperation and on its authority to withhold supply when charges are unpaid.
  • The respondents assert that only in the absence of fraud would Section 26(6) apply to make the register conclusive; because they claim fraud, they say they were not bound by the rule that the register is conclusive.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hamidullahkhan v. The Chairman, M.P.E.B., AIR 1983 Madh Pra 1 Cited for the proposition that disputes as to meter correctness must be referred to and decided by the Electrical Inspector under Section 26(6) of the Indian Electricity Act, 1910. The court accepted and relied on the same principle: that it is for the respondents to get the dispute decided by the Electrical Inspector and that until such decision the consumer cannot be compelled to pay the supplementary bill or be denied reconnection.

Court's Reasoning and Analysis

The court's analysis proceeds from the statutory text of Section 26 of the Indian Electricity Act, 1910. It emphasized Sub-section (6), which entrusts to the Electrical Inspector the determination whether a meter is correct and, if it is not, authorizes the Inspector to estimate the energy supplied for a period not exceeding six months. The court noted that, except where fraud is proved, the register of the meter is conclusive evidence of the quantity consumed.

The court also relied on the proviso to Sub-section (4) of Section 26, which precludes a licensee from taking off or removing a meter if a dispute of the nature described in Sub-section (6) has arisen until the dispute has been determined in the manner provided. From these statutory provisions the court concluded that the correctness of the meter and any consequential estimation of consumption are expressly matters for the Electrical Inspector and not for the Board to decide unilaterally.

Applying those statutory principles to the facts before it, the court observed that the respondents had alleged tampering and fraud but had not proceeded by reference to the Electrical Inspector; rather, they had themselves prepared a supplementary bill and demanded payment as a condition of reconnection. The court found this course impermissible: the statute prescribes the procedure and the exclusive role of the Electrical Inspector in resolving such disputes and in estimating consumption if the meter is found incorrect.

The court further noted that the respondents failed to point to any provision in the Act or Rules that authorizes a licensee to prepare and enforce a supplementary bill computed other than from meter readings without having first obtained the inspection/decision of the Electrical Inspector. The court declined to adjudicate the truth of the fraud allegations and held that the existence of a dispute required referral to the Electrical Inspector; until such determination, the respondents could not lawfully insist upon payment or withhold reconnection.

Holding and Implications

Holding: The petition is allowed. The court quashed the letter dated 4-3-1983 (Annex. E) and the supplementary bill dated 2-3-1983 (Annex. F) as illegal. The respondents were directed to reconnect and restore electric supply by installing another meter within a fortnight, having already collected Rs. 433 and Rs. 44 by receipts (Annexes B and C). There was no order as to costs. Any outstanding security deposit, after verification if any, shall be refunded to the petitioner.

Implications: The direct effect is that the petitioner must be reconnected and the impugned demand is set aside; the Board cannot compel payment of the supplementary bill nor withhold reconnection without first obtaining the decision of the Electrical Inspector as prescribed by Section 26(6) of the Act. The opinion does not purport to set a new broader precedent beyond enforcing the statutory procedure; it enforces the established statutory allocation of authority to the Electrical Inspector and requires the Board to follow that procedure before recalculating or demanding charges allegedly arising from an incorrect meter.

This summary is based exclusively on the content of the provided opinion. No information beyond the opinion's text has been added or inferred.

    Smt. Basantibai v. M.P Electricity Board, Indore And Others

    1. The petitioner Basantibai is the proprietor of Santosh Industries, D-11 B. C Sector, Saver Road, Indore. She had obtained the service connection No. 192352 of 30 H. P. load for running an oil-mill. The Madhya Pradesh Electricity Board (respondent 1) who is a licensee, had installed a meter for ascertaining the amount of energy supplied and consumed by the petitioner under the aforesaid service connection. The meter so installed is the property of respondent 1.

    2. According to the petitioner on 18-2-1983 the meter got burnt and this fact was immediately reported to the respondent 4 an Assistant Engineer of the Zone in which the petitioner Industry is situated. On 1-3-1983 the petitioner was directed to deposit a sum of Rs. 433/- as the price of the meter and Rs. 44/-as connection charges. The petitioner deposited the aforesaid amounts on the same day. However, the respondent-Board failed to restore the electric connection by installing another meter even after the aforesaid deposit made by the petitioner, who on 5-3-1983, vide notice Annex-D called upon the respondents to restore the electric connection by installing another meter. However instead of restoring the electric connection the respondent 4 through a registered letter dt. 4-3-1983 Annexure-E called upon the petitioner to pay a sum of Rs. 12,346.10 paise as per the supplementary bill dt. 2-3-1983 Annexure F. The basis of the supplementary bill was that the meter was not recording the actual energy supplied and consumed as it was found that one phase was not working and the meter was running on two phases only. The petitioner was also informed that in case of non-compliance the electric supply would be cut off.

    3. The petitioner by this petition challenges the letter dt. 4-3-1983 (Annex. E) and the supplementary bill dt. 2-3-1983 (Annex. F) as according to her this demand is illegal.

    4. The respondents' case, as it emerges from the return, is that on 17-2-1983 the power connection was checked and it was found that out of three phases, one phase was not working. The body seal was found to be intact. It is contended that the consumer was informed that his bills would be revised in view of the non-working of one phase as found at the time of 'checking. The respondents have denied that the meter got burnt on 18-2-1983. On the other hand, it is their charge that the petitioner or her associates burnt the meter, which according to the respondents ordinarily would not burn. The respondents further contend that on 19-2-1983 a checking party was sent for checking the meter, which was removed in the presence of the petitioner's husband and the meter reading was also done in his presence, which was 29929. It is alleged that the body seals of the meter were broken. According to the respondents this tampering of seals prima facie appears to have been done between 17th and 19th Feb. 1983 and it is their imputation that in order to avoid any liability, which would have accrued for retailing, the meter itself was burnt. The respondents allege that the petitioner's husband refused to sign the Panchnama, which according to respondents was prepared on the spot.

    5. The petitioner contends that the respondents in view of Section 26(6) of the Indian Electricity Act, 1910 (hereinafter referred to as the (Act)) and the rules cannot revise or prepare a supplementary bill and compel the petitioner to pay the same before restoring the electric supply. Such a payment cannot be made a condition precedent for restoring the electric supply. The respondents on the other hand contend that as one of the phases was not working, it is apparent that one-third of the total actual consumption by the petitioner could not be recorded and as such the respondent Board was justified in preparing a supplementary bill on the basis of average billing, recalculating the same and adding one-third to it on account of non-recording of the meter from the period commencing with the date of installation to the date of checking, i. e. 17-2-1983. The respondents have further contended that the petitioner was called upon to produce her production records so as to satisfy the respondents as to the actual hours when the Industry had worked, thus enabling them (the respondents) to calculate the actual consumption of electric energy on the basis of the consumption of electricity keeping in view the actual production. However, the petitioner's husband is said to have refused to produce the records of production. It is on this basis that the respondents impute lack of bona fides to the petitioner and thus the supplementary bill, Annex. F, is sought to be justified as correct. The respondents have further contended that the authorities have right to withhold the electric supply when the charges are not paid.

    6. The respondents' contention is that it is only in absence of fraud that a reference under Section 26(6) of the Act is possible and according to them they have made out a case of fraud against the petitioner.

    7. Learned counsel for the petitioner contends that the petitioner had been regularly depositing the electric bills and as such, her supply of electric connection cannot be stopped. The petitioner has not disputed the meter readings. According to the learned counsel the register of the meter is the conclusive proof of the quantity consumed in absence of any fraud on the petitioner's part, as is contemplated by Sub-section (6) of Section 26 of the Act, which reads as under:

    "Section 26. Meters -- (1) ........ (2) ..........

    (3)............(4)............. (5).............

    (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 supply in the opinion of such Inspector, have not been correct but save as aforesaid the register of the meter shall, in the absence of fraud, be conclusive proof of such amount or quantity : Provided that before either a licensee or 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."

    8. Shri Garg, appearing for the respondents has laid emphasis on the words "in the absence of fraud" and submitted that the respondents have made out a prima facie case against the petitioner for inferring such a fraud. Learned counsel for the petitioner has further submitted that it is not open to the respondents, as contended, that they can stop the supply of electricity. He relies on the proviso to Sub-section (4) of Section 26 of the Act, which is as under :

    "Section 26(4). -- The licensee or any person duly authorised by the licensee shall, at any reasonable time and on informing the consumer of his intention, have access to and be at liberty to inspect and test, and for that purpose, if he thinks fit, take off and remove, any meter referred to in Sub-section (1) and, except where the meter is so hired as aforesaid, all reasonable expenses of and incidental to, such inspecting, testing, taking off and removing shall, if the meter is found to be otherwise than correct, be recovered from the consumer: and where any difference or dispute arises as to the amount of such reasonable expenses, the matter shall be referred to an Electrical Inspector, and the decision of such Inspector shall be final:

    Provided that the licensee shall not be at liberty to take off or remove any such meter if any difference or dispute of the nature described in Sub-section (6) has arisen until, the matter has been determined as therein provided."

    The proviso lays down that the licensee i.e. the respondent Board here in is not at liberty to take off or remove the meter in the event of any difference or dispute, as described in Sub-section (6), has arisen until such matter has been determined and decided in the manner provided for by Sub-section (6) of Section 26 of the Act.

    9. The allegations made by the respondents against the petitioner are a matter of inquiry by the Electrical Inspector and it is he who under Sub-section (6) of Section 26 is entrusted with the task of deciding the correctness or otherwise of the mater. This sub-section clearly provides that where the meter has in the opinion of the Electrical Inspector ceased to be correct, such Inspector shall estimate the amount of the energy supplied. The correctness of the meter is a question to be decided by the Electrical Inspector and even in the matter of holding an opinion that the meter is not correctly working or recording, it is not the opinion of the respondent Board, but ultimately the matter is to be decided by the Electrical Inspector, Instead of taking the course as provided by the law the respondents seek to justify their action by attributing fraud to the consumer. But, such argument, in our opinion, is not tenable in law. Sub-section (6) of Section 26 also prescribes the period for which a supplementary bill or a revised bill could be prepared and the determination of energy consumed is again entrusted to the Electrical Inspector. The respondent Board or its authorities cannot prepare such revised or supplementary bill and call upon the consumer to pay in accordance with such bills, by whatever name it is called, either revised or supplementary. The very fact that the respondent Board or its authorities are required to prepare such supplementary bill goes to show that they are not satisfied with the correctness of the meter recording, which is not disputed by the petitioner. The insistence to pay such a supplementary bill is, therefore, not supportable and the authorities would not be justified in insisting on such a payment before reconnecting or restoring the electric supply by installing a meter. It is beyond the scope of their authority and such an insistance has no foundation in law.

    10. Learned counsel for the petitioner is right in his submission that the respondents could not have themselves decided that the meter installed was defective or was not correctly recording the actual consumption because such a decision can be given only by referring the dispute to the Electrical Inspector Learned counsel for the petitioner further contended that even the so called fraud, which is sought to be made out against the petitioner is an afterthought, as at no stage prior to the filing of this return the respondents have brought it to the notice of the petitioner, the imputations which they are now making in the return.

    11. We are not required to go into the truth or otherwise of the allegations made by the respondents, as in our opinion when any difference or dispute arises, which in the instant case has in fact arisen, as to whether the meter is or is not correct, the same is required to be decided by the Electrical Inspector.

    12. Learned counsel for the petitioner contends that there is no provision under the Act or the Rules permitting preparation of supplementary bills based on calculations other than the meter reading. Learned counsel appearing for the respondents was specifically called upon to point out any such provision justifying the issuance of such supplementary bills and he was at pains to point out any such provision. In such circumstances the petitioner cannot be called upon or compelled to deposit the amount of the supplementary bill before seeking reconnection or restoration of the electric supply. It can only be done by a decision of the Electrical Inspector and so long as it is not done, the electric supply to the consumer cannot be stopped.

    13. Shri Dhupar, learned counsel for the petitioner relying on the decision in Hamidullahkhan v. The Chairman, M.P.E.B. AIR 1983 Madh Pra 1 submitted that it is for the respondents to get the dispute decided by the Electrical Inspector, which alone is the courses open to the respondents in view of Sub-section (6) of Section 26 of the Act. For whatever reasons, it is obvious that the dispute has been raised by the respondents and so long as the Electrical Inspector does not decide the dispute as envisaged by the Section, the consumer petitioner cannot be compelled to pay the supplementary bill, Annex. F.

    14. In view of the discussion aforesaid, in our opinion, the petition deserves to be allowed and is accordingly allowed, the letter dt. 4-3-1983 (Annex. E) and the supplementary bill dt. 2-3-1983 (Annex. F) are hereby quashed as illegal. The respondents are directed to reconnect and restore the electric supply by installing another meter, for they have already collected the charges of Rs. 433A and 44A, vide receipts, Annexes-B and C, within a fortnight from the date of this order. However, in the circumstances of the case, there shall be no order as to costs of this petition. The outstanding amount of the security deposit, after verification if any, shall be refunded to the petitioner.

    Use AI to get other relevant cases.

    Comments

    Smt. Basantibai v. M.P Electricity Board, Indore And Others
    (Sep 20, 1984)