Created by Fuzzy Cloud

Bombay High Court

MAHARASHTRA STATE ELECTRICITY DISTRIBUTION CO LTDversusTHE CONSUMER GRIEVANCE REDRESSAL FORUM PUNE ZONE AND ANR

Decided
Disposal
Disposed Off

Holding

The Court quashed the impugned order and held that the bill of Rs 6,00,650 is payable by HPCL.

Summary

The petition challenged an order of the Consumer Grievance Redressal Forum that set aside a bill of Rs 6,00,650 raised against Hindustan Petroleum Corporation Ltd. (HPCL) for arrears arising from an erroneous classification of its electricity connection as ‘industrial’ instead of the ‘commercial’ category for which it was granted in 2013. HPCL argued that the mis‑classification was not its fault and that the bill should be recoverable despite the two‑year limitation under Section 56(2) of the Electricity Act, 2003. The Court examined the provisions of Section 56 and relied on Supreme Court judgments in Prem Cottex and Rahamatullah, which held that the limitation bars disconnection of supply but does not preclude recovery of dues by other means. Accordingly, the Court quashed the Forum’s order, upheld the bill and directed HPCL to pay the amount within four weeks, with no interest as the error was not attributable to the respondent. The petition was therefore allowed.

Issues considered

  • Whether the Consumer Grievance Redressal Forum could set aside a bill for arrears arising from a mis‑classification of consumer category under Section 56(2) of the Electricity Act, 2003.
  • Whether the two‑year limitation under Section 56(2) bars recovery of the amount claimed by the licensee.
  • Whether interest is payable on the arrears where the error was not caused by the consumer.

Legislation cited

Subjects

  • Electricity Act 2003
  • Section 56
  • Consumer Grievance Redressal Forum
  • misclassification of consumer category
  • bill recovery
  • interest
  • disconnection of supply

Judgment

                                                                             33-WP-18321-2024.doc



                               IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                            CIVIL APPELLATE JURISDICTION
          Digitally
          signed by
          CHAITANYA
CHAITANYA ASHOK
ASHOK
JADHAV
          JADHAV
          Date:
          2026.03.10
                                         WRIT PETITION NO. 18321 OF 2024
          11:01:27
          +0530




                        Maharashtra State Electricity Distribution Co Ltd.      …Petitioner
                                   Versus
                        The Consumer Grievance Redressal Forum Pune             …Respondents
                        Zone and Anr.



                            Adv. Trishala Sailish i/b KP Law Associates LLP, for the
                            Petitioner.

                            Mr. Aniesh S. Jadhav i/b Amisha Lolusare, Adv. Rushikesh
                            Kekane, for Respondent No.2.

                            Adv. P. V. Nelsan Rajan, A.G.P. for the State.


                                              CORAM     : SOMASEKHAR SUNDARESAN, J.
                                              DATE      : MARCH 4, 2026

                       ORDER :

                       1.            This Petition impugns an order passed by Respondent No.1,

                       the Consumer Grievance Redressal Forum, formed under the Electricity

                       Act, 2003, by which, a bill dated June 20, 2022 raised on Respondent

                       No. 2, Hindustan Petroleum Corporation Ltd. was set aside. The

                       Impugned Order finds that the Petitioner has indeed been underpaid

                       and has directed recovery of the loss from the relevant officials of the

                       Petitioner.



                                                        Page 1 of 4
                                                       March 4, 2026
                       Chaitanya
                                                          33-WP-18321-2024.doc



2.          Learned Advocate for the Petitioner points out that HPCL

was granted a connection in 2013 under the “commercial” category

since the electricity connection relates to a petrol pump engaged in the

retail of petroleum products and has nothing to do with “industrial”

activity for which, electricity is charged at a lower rate.


3.          It was however discovered in 2021 that the bills were being

erroneously raised under the industrial category. This led to a bill for

arrears in the sum of Rs.6,00,650/- being raised. HPCL complained

against this, on the premise that it was not HPCL’s mistake that bills

were being raised erroneously under a wrong classification. This led to

the Consumer Grievances Redressal Forum passing the Impugned

Order disallowing the bill, with a dissenting judgement indicating that

the bill may be raised but only for the preceding two years in reliance on

Section 56 of the Electricity Act, 2003.


4.          Having heard the parties and having examined the record, it

is evident that the connection that HPCL applied for was in the

commercial category, and it was granted the connection too in that

category.    The bills have evidently been erroneously raised in the

industrial category. The entire quantum of the discount enjoyed by

HPCL over an eight-year period amounts to a princely sum of

Rs.6,00,650, and it is common ground that no interest is being charged.
                                 Page 2 of 4
                                March 4, 2026
Chaitanya
                                                                  33-WP-18321-2024.doc



5.           In these circumstances, having examined the Impugned

Order in the exercise of the extraordinary jurisdiction of this Court, it is

clear that the error that was sought to be corrected, ought not to have

been interfered with. In taking this view, I draw from the views of the

Supreme Court expressed in Prem Cottex1, wherein the Hon’ble

Supreme Court held as follows-


            “13. Despite holding that electricity charges would become first
            due only after the bill is issued to the consumer (para 6.9 of the SCC
            Report) and despite holding that Section 56(2) does not preclude the
            licensee from raising an additional or supplementary demand after
            the expiry of the period limitation prescribed therein in the case of a
            mistake or bonafide error (Para 9.1of the SCC Report), this Court
            came to the conclusion that what is barred under Section 56(2) is
            only the disconnection of supply of electricity. In other words, it was
            held by this Court in the penultimate paragraph that the licensee
            may take recourse to any remedy available in law for the recovery
            of the additional demand, but it barred from taking recourse to
            disconnection of supply under Section 56(2).”

6.           The aforesaid observation also draws from the view

expressed by the Supreme Court in Rahamatullah2, wherein the view

taken is that under Section 56(2), it is only coercive recovery that is




1 M/s. Prem Cottex Vs. Uttar Haryana Bijli Vitaran Nigam Limited & Ors., Civil
Appeal No. 7235 of 2009.
2 Assistant Engineer (D1), Ajmer Vidyut Vitran Nigam Limited and Anr. Vs.
Rahamatullah Khan alias Rahamjulla, (2020) 3 SCC 650.
                                      Page 3 of 4
                                     March 4, 2026
Chaitanya
                                                       33-WP-18321-2024.doc



prohibited for dues from a period prior to two years, and not recovery by

other means without the coercion of disconnection of supply.


7.          In my opinion, it would only be appropriate to quash and set

aside the Impugned Order, thereby upholding the bill of Rs.6,00,650,

which simply seeks to correct the admitted error in classification of the

category of consumer.     No interest is also being charged since it is no

fault of the Respondent that the error on the part of the Petitioner led to

under-recovery.


8.          In these circumstances, and in the peculiar facts of the case,

this Petition is allowed and the bill is held as payable. HPCL shall pay

the same within a period of four weeks from the upload of this order.


9.          All actions required to be taken pursuant to this order shall

be taken upon receipt of a downloaded copy as available on this Court’s

website.


                          [ SOMASEKHAR SUNDARESAN, J.]




                                Page 4 of 4
                               March 4, 2026
Chaitanya


Continue reading with your account

Sign in to read the full judgment. It’s free.

Sign in to read

Checking your session…

For a signed copy suitable for filing, refer to the court's website.