Supreme Court - On Electricity Dues

SUPREME COURT OF INDIA
(i) Electricity Act, 2003, S.56(2) -- `First due' - Electricity charges become `first due' only after the bill is issued to the consumer, even though liablity to pay may arise on the consumption of electricity. (Para 6.6)

(ii) Electricity Act, 2003, Ss.56(1), 56(2) -- Electricity dues - Non payment - Disconnection of electricity connection - S.56(1) of the Act confers a statutory right to the licensee company to disconnect the supply of electricity, if the consumer neglects to pay the electricity dues - This statutory right is subject to the period of limitation of two years provided by S.56(2) of the Act. (Para 7.3)

(iii) Electricity Act, 2003, S.56(2) -- Electricity dues - Non payment - Disconnection of electricity connection - Limitation of two years - Commences from the date on which the electricity charges become `first due'. (Para 7.4)

(iv) Electricity Act, 2003, S.56(2) -- Electricity dues - Non payment - Disconnection of electricity connection - Provision of S.56(2) of the Act restricts the right of licensee to disconnect electricity supply due to non payment of dues after the period of limitation of two years has expired - However, it does not preclude the licensee company from raising a supplementary demand after the expiry of limitation period of two years nor does it restrict other modes of recovery which may be initiated by the licensee company for recovery of a supplementary demand. (Paras 8 & 9)

(v) Electricity Act, 2003, S.56(2) -- Electricity dues - Non payment - Provision of S.56(2) of the Act does not preclude the licensee company from raising an additional or supplementary demand after the expiry of limitation period u/s 56(2) of the Act in the case of mistake or bona fide error - However, it does not empower the licensee company to take recourse to the coercive measure of disconnection of electricity supply, for recovery of the additional demand. (Paras 8 & 9)

(vi) Limitation Act, 1963, S.17(1)(c) -- Limitation - Mistake - In case of mistake, limitation period begins to run from the date when mistake is discovered for the first time. (Para 9)
2020(2) Civil Court Cases 001 (S.C.)