Lawstreet Journal

'Additional Bill Raised Will Not Be Hit By The Two Years Limitation Under Section 56(2) Of The Electricity Act': Supreme Court [READ JUDGMENT]

Lawstreet Journal 7 Oct 2021 7:28pm

Image courtesy: Lawstreet Journal Judiciary 'Additional Bill Raised Will Not Be Hit By The Two Years Limitation Under Section 56(2) Of The Electricity Act': Supreme Court [READ JUDGMENT]

The Apex Court has held that Section 56 (2) of the Electricity Act, 2003 does not apply in the case where a licensed Electricity Distribution Company under the Electricity Act raises an additional bill after detecting a mistake.

The Section of the Electricity Act, 2003 states that “no sum due from any consumer, under this section shall be recoverable after the period of two years from the date when such sum became first due".
 

BACKGROUND

The appeal was filed by a consumer against the additional demand raised by the licensee Uttar Haryana Bijli Vitran Nigam Ltd in the Case of M/S Prem Cottex v Uttar Haryana Bijli Vitran Nigam Ltd & Ors. 


NATIONAL CONSUMER DISPUTE REDRESSAL COMMISSION'S DECISION

The consumer had earlier appealed in the National Consumer Dispute Redressal Commission challenging the demand raised by the licensee, however, the NDRC rejected the claim of the appellant on the grounds that the bill raised was for the recovery of “escaped assessment” and there was no “deficiency of service” on the part of the company. 

The consumer aggrieved by the decision appealed in the Supreme Court. 

APPELLANT’S CONTENTIONS

The appellant had filed the case relying on Section 56(2) of the Act which states that no amount due from a customer is recoverable after a period of two years from the date on which it became first due. 

The appellant argued that since the bill had been due for more than that amount of time this section was applicable and hence the… Continue Reading...


Tagged: The Electricity Act   Supreme Court of India  
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