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 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. The civil court, appellate court and the Punjab and Haryana High Court held the action of the discom illegal as neither prior notice was issued nor any reference was made to the Electricial Inspector. The plea of the discom before all the three courts that the suit by the consumer was not maintainable was rejected, following which it appealed in the apex court. Agreeing with the discom, the apex court held that the courts below had erroneously entertained the suit even though the relevant act barred it, as the consumer has to first explore all the alternative remedy available to him or her. The bench, however, clarified that it was not expressing any opinion on the merits of the case

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