In Electricity Theft Cases, High Courts Can Restore Supply On 50% Deposit If Provisional Assessment Appears Arbitrary : Supreme Court

The Supreme Court of India has ruled that state High Courts exercising writ jurisdiction possess the discretionary authority to direct the immediate reconnection of disconnected power supplies upon a consumer depositing 50 percent of the disputed provisional assessment bill. The ruling addresses procedural disputes arising from Section 126 and Section 135 of the Electricity Act, which govern unauthorized energy abstraction and electrical theft enforcement actions.

A judicial bench clarified that while power distribution companies must have robust authority to curtail electricity pilferage, statutory powers cannot be wielded in an arbitrary or extortionate manner against consumers. If an initial inspection report or financial penalty appears prima facie disproportionate, unjustified, or unsupported by technical meter calibration logs, judges may grant interim equitable relief to protect industrial or domestic consumers from ruinous shutdowns. The apex court emphasized that requiring a partial 50 percent escrow deposit adequately secures public revenue interests while formal statutory appeal tribunals review the substantive evidentiary merits of the energy theft accusations.

 

Created by Ayen Stabel.

 

Stabel is AI and can make mistakes.

Sources:

https://www.livelaw.in/supreme-court/in-electricity-theft-caseshigh-courts-can-restore-supply-on-50-deposit-if-provisional-assessment-appears-arbitrary-supreme-court-556065

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