Bombay High Court
MAHARASHTRA STATE ELECTRICITY DISTRIBUTION COMPANY LTD THROUGH ITS NODAL OFFICERversusM/S BHARATI TELESONIC LTD
- Disposal
- DISPOSED OFF
Holding
The writ petition is disposed of and the matter is referred back to the Consumer Grievance Redressal Forum for fresh disposal.
Summary
Maharashtra State Electricity Distribution Company Ltd (MSEDCL) supplied electricity to Bharati Telesonic Ltd (Airtel) for a business purpose and initially levied an industrial tariff, later charging a commercial tariff. Airtel challenged the commercial tariff before the Consumer Grievance Redressal Forum (CGRF), which struck down the commercial charge and ordered a refund. MSEDCL filed a writ petition in the Bombay High Court alleging that the CGRF erred by classifying Airtel's activity as industrial, by improperly invoking the Income Tax Act, and by not considering photographic evidence of the site. The Court noted that the CGRF had not considered several material contentions, including whether the installed REG unit generated revenue and thus constituted a commercial activity. Relying on a prior Division Bench decision (Bharat Sanchar Nirgam Ltd. v. MSEDCL, 2024 DGLS (Bom.) 1432), the Court held that the matter required fresh consideration by the CGRF. Consequently, the writ petition was disposed of and the case was remitted to the CGRF for a fresh hearing, with both parties to appear on a specified date.
Issues considered
- The correct classification of Airtel's electricity usage as industrial or commercial.
- Whether the Income Tax Act can be invoked to determine the nature of the activity for tariff purposes.
- Whether the CGRF considered all relevant evidence, including photographs and revenue generation aspects.
- Whether MSEDCL must prove that the REG unit generated independent revenue to justify commercial tariff.
Legislation cited
Subjects
- electricity tariff
- commercial vs industrial usage
- Consumer Grievance Redressal Forum
- Income Tax Act
- revenue generation
- writ petition
- telecommunication infrastructure
- jurisdiction
Judgment
2026:BHC-AUG:42822
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
WRIT PETITION NO. 8827 OF 2023
Maharashtra State Electricity Distribution Company Ltd
Through Its Nodal Officer
VERSUS
M/s Bharati Telesonic Ltd
...
Mr. V. D. Sapkal, Sr. Adv. a/w Mr. V. D. Khivesara and
Mr. A. S. Bajaj, Advocate for the Petitioner
Mr. R. M. Gaikwad and Mr. R. R. Kazi, Advocate for
Respondent (Thr. V.C.)
…..
CORAM : AJIT B. KADETHANKAR, J.
DATED : 16TH SEPTEMBER, 2026
P.C. :-
. Feeling aggrieved by the decision and order dated
26.04.2023 passed by the Consumer Grievance Redressal
Forum, Chhatrapati Sambhajinagar (“CGRF” for brevity) in
case No.CGRF/A’bad/1109/2023/05, the Maharashtra State
Electricity Distribution Company Ltd. (“MSEDCL” for brevity)
has preferred this petition.
2. The petitioner/MSEDCL is a company registered under
the Companies Act, 2013 and is owned by the Government of
Maharashtra. The respondent is a business entity involved in
the activities of telecommunication sector, particularly in the
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installation and operation of mobile towers for providing
mobile and internet services to the public.
3. On 28.02.2009, the respondent applied to the petitioner
for electricity connection for its utilization at its site located at
Hotel Nagarjuna, Airport Road, Nanded. The application in
prescribed format was submitted by the respondent/Bharti
Telesonic Ltd. (“Airtel” for brevity). Clause no.6 of the
prescribed application form required the prospective consumer
to specify whether the electricity connection was sought for
domestic or business purpose. Suffice to note, there were only
two categories specified in the application form. The
respondent/Airtel, in its application sought the electricity
connection for business purpose.
4. Consequent to the application and after completion of
the formalities, the electricity connection was sanctioned and
provided to the respondent/Airtel. For some period Airtel was
charged at the commercial tariff, whereas for certain period,
the tariff applicable to industrial usage was levied. Suffice to
note, there is difference between the tariffs applicable to
industrial and commercial usage. The controversy between the
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parties arose when the petitioner/MSEDCL charged Airtel at
the commercial tariff for the same electricity connection,
although for an earlier period, the tariff applicable to
industrial usage had been levied.
5. Feeling aggrieved by the levy of the commercial tariff,
Airtel approached the CGRF, Chhatrapati Sambhajinagar. The
forum heard both the parties and allowed the complaint filed
by the respondent/Airtel. The tariff applied at commercial
usage was struck-down. The MSEDCL was directed to adjust
the amount paid excess by Airtel for the usage of the
electricity.
6. Feeling aggrieved thereby, the MSEDCL has filed
present petition.
7. During the course of hearing, Mr. V. D. Sapkal, learned
Senior Advocate i/b Mr. A. S. Bajaj, learned Advocate for the
petitioner pointed out a judgment passed by the Division
Bench of this Court in the case of Bharat Sanchar Nirgam
Limited Vs. Maharashtra State Electricity Distribution
Company Limited, 2024 DGLS (Bom.) 1432 . He would submit
that the reasons recorded by the CGRF particularly its finding
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that the activities of Airtel constitute an industrial activity
cannot be made applicable for the present purpose. He would
submit that the CGRF has referred to the Income Tax Act and
has applied those provisions while deciding the complaint.
Pointing out the judgment delivered by this Court in the BSNL
case supra Mr. Sapkal, learned Senior Advocate submits that
this Court has clarified that the provisions under the Income
Tax Act could not be invoked for the purpose of present
controversy.
8. Then, Mr. Sapkal submits that the CGRF has not at all
considered the photographs produced by the MSEDCL to
demonstrate that the activity conducted by the Airtel at the
subject matter/site was in fact shows that it was a commercial
activity. The wholesome objection of Mr. Sapkal is that the
respondent Airtel was operating a telephone exchange at the
site and hence since it was a revenue generating activity, the
MSEDCL was justified in charging the tariff applied for the
commercial usage.
9. Mr. R. M. Gaikwad, learned Advocate for respondent/
Airtel advocates the reasoning rendered by the CGRF. He
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would submit that in fact the MSEDCL never conducted
physical inspection of the site. What was done was only on
visit by an Officer of the MSEDCL who purportedly prepared a
report of inspection and recorded that a commercial activity or
commercial usage was in operation at the subject matter site.
He would submit that the application which was given by the
MSEDCL to the consumers while securing a connection
prescribes only two types of usages; (i) Domestic and (ii)
Business. He submits that it ought to have been further
classification as to industrial or commercial usage. He submits
that the MSEDCL cannot take benefit of its own wrong.
10. It is another contention of learned Advocate for
respondent/Airtel that the petitioner/MSEDL could not
establish that any independent revenue generating activity
was being carrying out by Airtel through the use of the said
unit at the subject matter-site. He would submit that, having
regard to the actual activity carried out by the
respondent/Airtel, the unit installed at the site can only be
regarded as a unit or instrument ancillary to the mobile
towers. He submits that admittedly, no mobile tower was
installed at the subject site and that the unit installed therein
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is a REG Servers, which merely receives signals from one
tower and transmits them to another tower. He submits that
as such the unit by itself does not carry out any independent
activity and hence it is rightly termed by the CGRF as an
instrument or ancilliary unit of the mobile towers. Operation
of such unit is covered under industrial activity. He further
submits that MSEDCL could not establish that the unit was a
‘Telephone Exchange’. With this, Mr. R. M. Gaikwad, learned
Advocate submits that the Writ Petition be dismissed.
11. During the course of hearing, it appears that the
judgment rendered by the Division Bench was not brought to
the notice of the CGRF. Secondly, the contention of
respondent/Airtel as regards to the contents in the electricity
connection application are also not discussed by the CGRF.
Thirdly, the issue as to whether the petitioner/MSEDCL was
required to establish that the REG unit was generating
revenue, and if so, whether such activity would constitute a
commercial activity of the respondent/Airtel is required to be
proved before the CGRF. Although the complaint is allowed by
the CGRF, the basic objections of the MSEDCL as regards to
the commercial usage needs to the elaborately discussed by
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the CGRF. In view of this, I deem it appropriate to relegate
the matter to the CGRF. In view of the issues to be agitated by
the parties as observed supra, I pass following order:
ORDER
a. Writ Petition stands disposed of.
b. The matter is relegated to the CGRF for
fresh disposal.
c. All contentions of both the parties are kept
open.
d. Suffice to note, this Court has not
commented on merits of either party. The issues
referred are on the basis of contentions of the
parties.
e. Both the parties candidly agree to appear
before the CGRF on 05.10.2026. It is agreed that
no separate notice is needed for that purpose.
f. After appearance of both the parties, the
CGRF is requested to conclude its hearing within
a period of three months.
g. It is requested to the CGRF to issue
appropriate directions if required to the MSEDCL
for directing official disconnection at the site and
for issuing appropriate bill in the light of that
discontinuation.
( AJIT B. KADETHANKAR, J. )
Rushikesh/2026
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