RELIANCE ENERGY LTD Vs. CHIEF ENGINEER PWD DEPARTMENT

JUDGEMENT

(1.) The first petitioner is a company incorporated under the provisions of the Indian Companies Act, 1930 which carries on business inter alia of generation and distribution of electricity. Petitioner No. 2 is a shareholder of the company. Respondent No. 1 is the appellate authority appointed under Section 127 of the Electricity Act, 2003 (hereinafter referred to as "Act"). The respondent No. 2 is an original consumer of the first petitioner having a two storied bungalow. The petitioner by the present petition challenges the legality and validity of the order dated 18-3-2005 which hereinafter shall be referred to as the impugned order passed by the respondent No. 1 under the provisions of Section 127 of the Act. By the impugned order the first respondent directed that the assessment charged for the unauthorised use of the electricity by respondent No. 2 shall be limited for a period of three months immediately preceding the date of detection of the illegality. That order is the subject-matter of the present petition.

(2.) There were several other petitions including Writ Petition No. 2156 of 2006, Writ Petition No. 2157 of 2006, Writ Petition No. 2158 of 2006 and Writ Petition No. 2159 of 2006, wherein also one of the challenges was to limiting the recovery of electricity dues as is the present challenge. There was also another challenge before the appellate authority in those proceedings. The respondent No. 2 in those proceedings held that the order of assessment was not passed by the Assessing Officer. Ordinarily this issue had to be decided in those petitions. As in those petitions none appeared for the private respondents and were ex parte and as respondent No. 2, the present respondent is represented in this petition, we thought it appropriate to decide that controversy also in the present petition, after hearing counsel for the respondent No. 2 as well as counsel holding for respondent No. 1.

(3.) The two issues therefore, which will be decided in this petition are : (1) Whether Section 127 of the Electricity Act, limits the power of the Assessing Officer to recover charges, for unauthorised use of electricity, for the period of three months or six months as the case may be preceding the inspection and detection of the unauthorised use. (2) Whether on the inspection done by the person other than assessing Officer considering the language of Section 126, is it open to the Assessing Officer to rely on that inspection record for the purpose of making a provisional assessment and thereafter, passing an order of assessment under Section 126(5) of the Act.