Facts
The Bank had an electricity connection for an ATM installed on 3 May 2013.
Source reference: para. 2–3, 7–8, 18No regular bills were raised before a vigilance inspection on 3 February 2017, following which the respondents demanded ₹17,05,705 based on the meter reading and alleged seal tampering.
Source reference: para. 2–3, 7–8, 18The Bank disputed the inspection, meter reading, and assessment, and contended that the demand was barred by Section 56(2) of the Electricity Act, 2003.
Source reference: para. 4–5, 10–12It also stated that the demand was later reduced to ₹6,56,601, without an adequately explained basis.
Source reference: para. 4–5, 10–12The respondents raised the availability of an appeal under Section 127 against the assessment under Section 126.
Source reference: para. 13–16The Bank sought to quash the demand and restore the ATM’s electricity supply.
Source reference: para. 1Issues
1. Whether the writ petition should be entertained when the Bank had a statutory appellate remedy under Section 127 of the Electricity Act, 2003
Source reference: para. 13–16, 19–222. Whether the demand was barred by Section 56(2), or otherwise unsustainable because of alleged defects in the inspection and assessment
Source reference: para. 4, 10–12, 19Law Applied
Section 126 of the Electricity Act, 2003 provides for assessment in cases of unauthorised use of electricity, and Section 127 provides a statutory appeal against a final assessment.
Source reference: para. 13–15The Court applied the principle that an efficacious statutory remedy ordinarily weighs against exercise of writ jurisdiction, particularly where the dispute involves factual questions suited to the statutory appellate authority.
Source reference: para. 20–22Section 56(2) concerns recovery of electricity charges, but the Court did not decide its application to this demand; it noted the respondents’ reliance on M/s Prem Cottex v. Uttar Haryana Bijli Vitran Nigam Ltd., (2021) 20 SCC 200, without determining the merits of that argument.
Source reference: para. 14, 19, 23Reasoning
The demand arose from a vigilance inspection and subsequent assessment, while the Bank disputed the meter reading, alleged tampering, inspection procedure, and calculation of the demand.
Source reference: para. 19–22The Court considered those issues appropriate for examination by the Section 127 appellate authority, rather than in writ proceedings.
Source reference: para. 19–22It therefore declined to determine whether Section 56(2) barred recovery or whether the assessment was otherwise correct.
Source reference: para. 23Holding
The Court disposed of the writ petition, leaving the Bank at liberty to pursue the remedy under Section 127 in accordance with law.
It expressed no opinion on the merits of the demand or the Bank’s limitation claim under Section 56(2).
Source reference: para. 23Acts & Sections Cited
3 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.
Electricity Act, 20033
Original Court PDF
The Indian Overseas BankvsThe North Bihar Power Distribution Company Ltd and Ors
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