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Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108)     24 June 2008

Electricity disputes are covered by Consumer Act

Dear All,

The following appeared in "Times of India",  page no. 09, Mumbai Edition, dated 24' June-2008.

If anybody can get the contexted judgement case details, please let me know about it.

Please also provide your comments / suggestions / opinions, ON THIS LANDMARK JUDGEMENT.

Keep Smiling ... Hemant Agarwal


==================

ELECTRICITY DISPUTES ARE COVERED BY  " CONSUMER ACT ".

Subject: What kind of disputes regarding consumption of electricity fall under the ambit of the Consumer Protection Act?

BACKDROP :

The Jharkhand State Electricity Board had filed an appeal before the Supreme Court contending that complaints by consumers of electricity were not maintainable under the Consumer Protection Act, after the enactment of the new Electricity Act of 2003. In view of this challenge, the Supreme Court had remanded the matter back to the National Commission to decide whether the consumer fora had the authority to decide such disputes or not. The National Commission has now decided this issue in a recent judgement passed on April 10, 2008.

CASE STUDY:

The Jharkhand State Electricity Board and the Gujarat Electricity Board had filed revision petitions before the National Commission challenging the jurisdiction of the consumer fora to entertain complaint and disputes pertaining to supply of electricity after the Electricity Act of 2003 was passed. To support these authorities, the Madhya Gujarat Vij Company Ltd. and the Calcutta Electricity Supply Corporation intervened in the matter to put up a unified effort to oust the the consumer fora.

   Their main contention was that the Electricity Act of 2003 was a complete code in itself and that it ousted the jurisdiction of the civil courts. The cases filed by electric companies before the competent courts for alleged theft of electricity and tampering of meters was for the redressal of the service providers and not the consumers, and hence the filing of such cases could not be challenged before the consumer fora. As regards consumer grievances relating to supply of energy, the Electricity Act has provided an exclusive forum for speedier remedy and therefore the forum constituted under the Consumer Protection Act could not entertain the complaint.

   The National Commission noted that Section 173 stipulates that nothing contained in the Electricity Act or any rule or regulation or instrument made thereunder shall have effect in so far as it is inconsistent with any other provisions of the Consumer Protection Act. This would imply that when there is a conflict between the two acts, the provisions of the Consumer Protection Act would prevail over the Electricity Act. Further, Section 175 states that the provisions of the Electricity Act are in addition to
and not in derogation of any other law in force.

   The National Commission also observed that Section 42 of the Electricity Act permitted a consumer to approach the forum appointed by the electric supplier, and in case his grievance was not redressed, he could approach the Ombudsman or the State Electricity Regulatory Commission, all of which would be without prejudice to the right which the consumer may be have under any other law.

   Having thus analysed the legal position, the National Commission held that Parliament had never intended to bar the jurisdiction of the consumer, but on the contrary, supplement the existing redressal system provided by the consumer fora. Moreover, the definition of service under the Consumer Protection Act specifically mentions the supply of electrical energy as a service. Accordingly, the National Commission held that consumers of electricity could file complaints before the consumer fora. The only bar was that any criminal prosecution lodged by the electric company could not be challenged before the consumer fora. The jurisdiction was thus summed up as:

   A complaint alleging any deficiency on the part of the electricity board or company including any fault, imperfection, shortcoming or inadequacy in quality, nature and manner of performance which is required to be maintained by or under any law or in pursuance of any contract in relation to service, is maintainable under the Consumer Protection Act.

   Against the Assessment Order passed under Section 126 of the Electricity Act, a consumer has option either to file appeal under Section 127 of the Electricity Act or to approach the consumer forum—he can choose either of these two remedies. However, before entertaining the complaint, the consumer fora should direct the consumer to deposit an amount equal to one-third of the assessed amount with the licensee (similar to Section 127(2) of the Electricity Act).

   Consumer fora do not have the jurisdiction to interfere with the initiation of criminal proceedings before the special courts and the final order passed by such courts under Section 153 or the civil liability determined by Such courts under Section 154 of the Electricity Act.

IMPACT:

With the National Commission clarifying and laying down the law on the subject, aggrieved consumers are entitled to approach the consumer fora for redressal of their grievances.



Learning

 5 Replies

Srinivas.B.S.S.T ( Advocate)     24 June 2008

Thnaks for the valuable information.

Guest (n/a)     26 June 2008

 


Dear Friends,


My dad and his brother started the very first Industry of Adityapur known as Pioneer Engineering Co. (PECO). Now in the same premises there are two co.s under the names of Pioneer Technocrats (PTPL) and Sokhi Engineering ( SECO) being run by my Dad and his brother independently.Both co.s registered with AIDA.


The electricity board has filed a case against PECO and disconnected the power about 11 yrs from now and case is still pending finalisation.  


Before disconnection of this HT power to PECO, SECO was alloted a HT line which still exists.


But the agony of the fact remains that my Dad has not been given the power since past 11 yrs, on the pretext that there is a  case pending with PECO.


THIS IS LIKE A APPEAL TO THE SUPREME COURT FOR JUSTICE.


IS'NT ...JUSTICE DELAYED = JUSTICE DENIED.    


My carreer has been ruined, who should be held responsible?  


( Hope this reaches the CM and his motley)


Regards,


Singh Sokhi

lakshmananshreeram (advocate)     05 July 2008

thanks pal for ur nice msg

A. A. JOSE (LAWYER; LEGAL ADVISER/CONSULTANT& TRAINER)     21 March 2009

Dear Mr.Hemant Agarwal,


 


Thanks for valuable information. However, I may  further add here that ,as per reliable information, the subject judgements of the National Commission  have been challenged before the Hon'ble Supreme Court. Therefore, we may have to watch for the final outcome of such proceeedings.


 


 

M. PIRAVI PERUMAL (Advocate & Consumer Rights)     06 December 2009

2009 SCCL.COM 2083(Case No: Civil Appeal No. 5952 of 2002
Uttarakhand Power Corporation Ltd. and another Appellants versus ASP Sealing Products Ltd. Respondent
Date of Decision(mm/dd/yy): 9/8/2009.
Judge(s): Hon'ble Mr. Justice G.S. Singhvi and Hon'ble Dr. Justice B.S. Chauhan. 
Subject Index: Electricity Supply (Consumers) Regulations, 1984 — Board sanctioned electric connections of 400 KVA & 200 KVA at 2 occasions for the respondent's factory — electricity supply discontinued on the request of respondent — after 5 months of the discontinuation, Executive Engineer asked the respondent to pay Rs. 6,13,592/- towards minimum charges for 6 months — whether the respondent, who was a consumer of electricity supplied by U.P.S.E.B. liable to pay minimum charges in terms of second proviso to para 11 of agreement read with clause 17(ii) of Regulations, 1984 after disconnection of the supply of electricity? — Yes— if the supply of electricity disconnected at consumer's request or on account of default of payment before expiry of 2 years specified in the agreement and Regulations, then Consumer bound to pay minimum charges for remaining period or for 6 months from the date of disconnection — fresh agreement entered into between the parties and after 9 months of execution of fresh agreement, a request was made for disconnection of the supply of electricity — respondent liable to pay minimum charges — appeal allowed.


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