Power consumer cannot directly approach courts on dispute: SC

The Supreme Court has held that courts cannot entertain a petition filed by an electricity consumer accused of pilferage or involved in any other dispute pertaining to power supply.

New Delhi, Nov 14: The Supreme Court has held that
courts cannot entertain a petition filed by an electricity
consumer accused of pilferage or involved in any other dispute
pertaining to power supply unless he or she has exhausted all
available alternatives for remedy.

Interpreting sub-section (1) of Section 24 of the
Indian Electricity Act, 1910, a bench of Justices Arijit
Pasayat and Mukundakam Sharma said that a suit against the
action of a power distribution company was not maintainable
in a court of law, if the alternative remedies were not
exhausted.

The alternative remedy refers to higher authorities in
the power distribution company and the appellate tribunal
constituted for the purpose.

According to the Electricity Act, no Court shall take
cognizance of any matter pertaining to the payment of charges
due from any person to a licensee in respect of the supply of
energy to him or stay the recovery thereof unless - he has
exhausted all the remedies available to him under the terms
and conditions governing the supply of energy to him.

It further says that the consumer has to deposit forty
per cent of the amount outstanding against him, with the
licensee.

The apex court passed the ruling while upholding an
appeal filed by the Haryana Vidyut Parsaran Nigam Ltd against
M/s Super Star Grit Udyog which was served with a penalty of
Rs 11.37 lakh by the power discom for alleged pilferage of
energy.

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