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vasu (intern)     06 October 2011

Recovery of dues by an electric company barred by limitation

hello sir,

my query is whether an electric company/supplier recover its dues or arrearsafter the period of limitation prescribed in section 56(2) of the eclectricity act,2003.

Please sir looking for your kind guidance.

Regards,

Vasu Sastry



Learning

 11 Replies

M. A. Khan (advocate)     06 October 2011

Once the claim is time barred it cannot be claimed. electric company has remedy to refer matter under section 126 of the act for assesment.
1 Like

PURSHOTTAM KHANCHANDANI (ADVOCATE HIGH COURT MUMBAI - 880 660 1717)     07 October 2011

TIME BARRED DEBT CAN NOT BE CLAIMED.

1 Like

PJANARDHANA REDDY (ADVOCATE & DIRECTOR)     07 October 2011

IN AP RECENTLY THE AP TRANCSO & AP ELE. REGULATION COMMISSION LAST THE CASE IN COLLECTING TIME BAR FUEAL SURCHARGE ADJ. CASE.

THE  BATCH OF W.P S ARE AROUND 2000NOS. IT IS THE VOILATION OF SEC 64 OF THE ELECITY  ACT,2003 (BEFORE/WITH IN 120DAYS).

PLS SEE THE LINK:-

 

https://csis.ap.nic.in/MainInfo.jsp?mtype=WP&mno=19571&year=2011

1 Like

vasu (intern)     07 October 2011

hello sir i read the the judgment but my query is still left unanswered.My query pertains to section 56(2) of the electricity act, which provides for a limitation period of two years to recover electrical dues from rhe date when such sum becoms due.I just want  to know can even after expiry of the said period the electrical company recover its dues or its barred and if the remedy is barred then what other remedy is left to the electrical company?.  Please sir looking for your futher follow up.

Regards,

Vasu

vasu (intern)     07 October 2011

 

hello sir i read section 126 of the said act, can you please explain or provide any further follow up on my query .My query pertains to section 56(2) of the electricity act, which provides for a limitation period of two years to recover electrical dues from rhe date when such sum becoms due.I just want  to know can even after expiry of the said period the electrical company recover its dues or its barred and if the remedy is barred then what other remedy is left to the electrical company?.  Please sir looking for your futher follow up.

Regards,

Vasu

vasu (intern)     07 October 2011

sir could you please provide me  a bit more detail on section 56(2) of the electricity act 2003 when once the recovery of dues become timebarred and any other remedy left to the electric compnay

A. A. JOSE (LAWYER; LEGAL ADVISER/CONSULTANT& TRAINER)     07 October 2011

Section 56(2) of the Electricity Act 2003 itself provides that the limitation of 2 years' is applicable "unless such sum has been shown continuously as recoverable as arrear of charges for electricity supplied ......"


As per the usual practice, the Electricity Companies usually shows continuously their outstanding arrears in their books of accounts as recoverable charges for electricity supplied and as such, it is only in such rare instances where the sum of arrear is not shown continously in their books of account as recoverable outstanding arrears, the limitatiAon period of 2 years would be applicable.  Otherwise, the normal limitation period  of 3 years is applicable.

Although the Electricity company's legal right for recovering the arrear amount  through court of law, i.e. by civil suit,  will be barred by the law of limitation as applicable,  the outstanding arrear amount is not wiped out merely on account of  bar of limitation.  The Electricity Company can claim the same whenever electricity connection is requested in the same premises.  There are some authorities in support of this view, one of which is of the Hon'ble SC, in the matter of Swastic Industries v/s MSEB ( probably  in the year 2001 ? ).  I may revert as and when I am able to give you the relevant citations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2 Like

Parthasarathy (Junior Advocate)     30 October 2011

Dear sir,

Your above information was very useful. Even i am looking for some clarifications regardings section 56(2) of the electricity act, 2003.  Sir can you tell me some case laws that is favour of section 56(2).  I am looking for cases which supports sections 56(2) and decides that the distribution licencees cannot claim any arrears after the time barred limitation of 2 years.  Kindly do the needful.  It would be great help to young budding lawyers like me.

salila (student)     06 December 2016

Reddy ji

     your qouted  link is not openable.pl attach the case.

it is freqent habit of electric co to register case in sec 126 , but they never give final assessment .appeal in sec 127 is for final assessment .hence one can find benefit of sec 126[3]

bad lucky the time barred case u/s 126[3] -who will listen

oppositely ,SC has directed courts not to deal in sec 126-wonder .

no case so no judgement.

Suri.Sravan Kumar (senior)     08 December 2016

There is a covered judgement by National Commission. I delat such type of matter and won the case. But I dont remember the citation.

salila (student)     10 December 2016

in sec 126 case ,ncdrc would not iterfere . but limitation u/s 126[3] on non final assessment ,would debarr the co .problem is-who would force the co to make restric u/s 126[3]

as sec 127 no applies and so no one competant to hear .strange ?


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