HC dismissed petition ; upholds appellate order in theft assessment case
Case No: W.P. (C.) No. 2594 of 2009
By Sandhya kaika
The Jharkhand High Court has dismissed a writ petition filed by the Jharkhand State Electricity Board (JSEB), affirming that electricity theft assessments must align with the formulas officially gazetted by the State Regulatory Commission.
The case originated from a May 2008 inspection at M/s Sri Durga Cement Co. Ltd., where JSEB officials found tampered seals and alleged electricity theft. An initial assessment of approximately ₹62.17 lakh was challenged by the consumer. The Appellate Authority subsequently modified this assessment, doubling the units consumed but applying the standard tariff of ₹4 per unit.
JSEB challenged the modification, arguing that under Section 126(6) of the Electricity Act, 2003, the assessment should have been calculated at twice the tariff rate (₹8 per unit) rather than just doubling the units at the base rate.
Justice Sanjay Kumar Dwivedi noted that while the Electricity Act provides for theft control, the specific “Supply Code” enumerating the assessment formula in Jharkhand was only published on September 1, 2010.
The Court highlighted several key legal points:
No Retrospective Effect: The 2010 formula cannot be applied retrospectively to a 2008 occurrence. Citing Apex Court precedent, the High Court emphasized that State Electricity Boards lack the power to frame tariffs; this remains the exclusive domain of the State Electricity Regulatory Commission (SERC). Since no official formula existed at the time of the incident, the Appellate Authority’s method of doubling the units at the prevailing tariff was deemed reasonable.
Finding no illegality in the Appellate Authority’s order, the High Court dismissed the Board’s petition, ruling that charges can only be levied based on tariffs and formulas officially approved by the Commission.
