Facts
The petitioner, a partnership firm with an electrical installation of 400 KVA, was inspected by the respondent’s checking squad on November 1, 2003.
Source reference: p. 2A panchnama was drawn alleging meter tampering, specifically noticing simple bolts instead of specialized ones and signs of cutting on the seal wire.
Source reference: p. 14–15Laboratory testing revealed the meter ran 42.51% slow, leading to a supplementary bill of ₹99,00,827.40.
Source reference: p. 3The petitioner appealed to the Appellate Committee, which partly allowed the appeal on August 2, 2004, reducing the load factor 'C' to 0.5 but confirming the finding of "electricity theft".
Source reference: p. 5The petitioner challenged this order and the revised bill of ₹52,39,116.60 via this writ petition, contending the matter should have been referred to an Electrical Inspector under Section 26(6) of the Electricity Act, 1910, especially since the partners were later acquitted in a related criminal case.
Source reference: p. 6–7Issues
1. Whether the dispute regarding alleged meter tampering and dishonest abstraction of energy falls under the jurisdiction of the Electrical Inspector under Section 26(6) of the Electricity Act, 1910.
Source reference: p. 112. Whether the acquittal of the petitioner's partners in a criminal trial for electricity theft is binding on the civil/administrative determination of the supplementary bill.
Source reference: p. 73. Whether the High Court can substitute its own findings for that of a technical Appellate Committee in exercise of its writ jurisdiction.
Source reference: p. 10Law Applied
Section 26(6) of the Electricity Act, 1910, which governs disputes regarding the correctness or physical defects of a meter but excludes cases of tampering.
Source reference: p. 22The Supreme Court precedent M.P.E.B. & Ors. v. Basantibai (AIR 1998 SC 23) clarified that disputes regarding "tampering" do not fall within the scope of the Electrical Inspector’s arbitration.
Source reference: p. 23The Division Bench in Prakash Industries v. DGVCL (R/FA No. 2182/2019) held that once prima facie evidence of unauthorized artificial means for abstraction is shown, a rebuttable presumption of theft arises against the consumer.
Source reference: p. 12–13Principle that the standard of proof in criminal proceedings (beyond reasonable doubt) differs from civil/administrative proceedings.
Source reference: p. 24Reasoning
The court found that the site panchnama and laboratory report provided cogent evidence of tampering, including tampered bolts and internal wiring irregularities in the B-phase.
Source reference: p. 15, 17Applying Basantibai, the court reasoned that since the respondent’s case was built on "tampering" rather than a mere "faulty meter," Section 26(6) was inapplicable, and no referral to an Electrical Inspector was required.
Source reference: p. 23The court noted that the Appellate Committee, comprising technical experts, had unanimously concluded electricity theft took place; therefore, the High Court would not interfere with such expert factual findings under Article 226.
Source reference: p. 21Regarding the criminal acquittal, the court reasoned that the lower standard of proof in civil matters meant the administrative finding of theft could stand independently of the criminal court's verdict.
Source reference: p. 24–25Holding
The court dismissed the petition and upheld the Appellate Committee’s decision, holding that the dispute was one of tampering/theft, not meter inaccuracy, thus excluding the jurisdiction of the Electrical Inspector.
The court further held that the findings of an expert technical committee cannot be replaced by the court’s view in writ jurisdiction.
Source reference: p. 21The Rule was discharged, and since the petitioner had already paid the revised bill in installments per previous interim orders, the respondent was directed not to demand further sums if no dues remained.
Source reference: p. 25Original Court PDF
REAL ICE FACTORYvsPASCHIM GUJARAT VIJ COMPANY LIMITED
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