Facts
The petitioner, a consumer of South Bihar Power Distribution Company Limited, challenged an order dated 14.07.2016 issued by the Electrical Superintending Engineer (Respondent No. 3) which affirmed a high electricity demand
Source reference: p. 1-2Following an inspection in 2009, a provisional assessment of Rs. 16,73,286 was raised, later reduced to Rs. 3,08,666 upon appeal, with directions to adjust excess payments
Source reference: p. 3subsequent inspections in 2011 led to an FIR and a new assessment of Rs. 32,95,543
Source reference: p. 4The petitioner previously approached the High Court in CWJC No. 13813 of 2013, where the Court directed the respondents to pass an appropriate order on the petitioner’s representation
Source reference: p. 5Respondent No. 3 subsequently issued the impugned order affirming a revised liability of Rs. 42,87,356 without granting the petitioner a personal hearing
Source reference: p. 5-6Issues
1. Whether the impugned order passed by the respondent authority is violative of the principles of natural justice due to the lack of a personal hearing
Source reference: p. 2 / para. 1(ii)2. Whether the expression "in accordance with law" in a court direction implies a mandatory requirement to afford an opportunity of hearing
Source reference: p. 8 / para. 7Law Applied
The Court applied the fundamental principle of administrative law, Audi Alteram Partem (hear the other side), as a component of the principles of natural justice
Source reference: p. 8The Court interpreted the specific judicial direction to act "in accordance with law" from the earlier order in CWJC No. 13813 of 2013 as necessarily encompassing the requirement to provide a fair hearing
Source reference: p. 7-8the Court relied on Article 226 of the Constitution of India regarding the High Court’s power to ensure procedural fairness by state authorities.
Source reference: no citationReasoning
The Court examined the rival contentions: the petitioner argued that the Electrical Superintending Engineer passed the order without any personal hearing, while the respondents argued that the previous court order did not explicitly mandate a hearing and that the representation was duly considered
Source reference: p. 6-7The Court rejected the respondents' narrow interpretation of the previous order. It reasoned that the phrase "in accordance with law" is not a mere formality but inherently includes the obligation to afford an opportunity of hearing to the affected party
Source reference: p. 8The Court noted that while the petitioner's counsel may have been present, the impugned order failed to record or discuss any oral submissions made, confirming a procedural lapse
Source reference: p. 8Consequently, the Court found the decision-making process flawed on the grounds of natural justice, regardless of the merits of the underlying financial demand
Source reference: p. 7-8Holding
The Court held that the opportunity of hearing must be afforded to the petitioner to satisfy the requirements of natural justice and the previous court's mandate
The High Court did not quash the demand on merits but directed the petitioner to appear before the respondent authority on 07.08.2026 for a personal hearing. The respondent authority was ordered to pass a fresh, reasoned, and speaking order within one month of the hearing, specifically addressing the petitioner’s contentions. The writ petition was disposed of with these directions.
Source reference: p. 8-9Original Court PDF
M/s Archem Drugs Private LimitedvsThe Bihar State Power Holding Company Limited and Ors
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