Electricity Act: SC Limits Recovery of Dues Beyond Two Years to Continuous Arrears

Case Title: DAKSCHINANCHAL VIDYUT VITRAN NIGAM LTD. VERSUS VIDUT LOKPAL, UTTAR PRADESH AND OTHERS

Case No.: CIVIL APPEAL NO. 5099 OF 2013

Coram: Justice SVN Bhatti and Justice NV Anjaria

Court Observation

“A monthly bill was issued for consumption under the Agreement dated 24.02.1997. However, no bill was issued for the additional 2000 KVA along with the regular bills. The amount fell due when the supplier was entitled to raise the bill. The word ‘due’ must be read as referring to a specific point in time, not as something uncertain. Also, no material or pleading shows that the sum has been continuously treated as recoverable as arrears from Respondent No. 3. Hence, the demand raised under the bill is barred by limitation.”

“Notwithstanding anything contained in any other law for the time being in force, no sum due from any consumer, under this section shall be recoverable after the period of two years from the date when such sum became first due unless such sum has been shown continuously as recoverable as arrear of charges for electricity supplied and the licensee shall not cut off the supply of the electricity.”

“Even if applied, the demand raised for the first time on 13.02.2007 for an event covered by the period February 1998 to September 1998 is barred by limitation.”

Electricity Act: SC Limits Recovery of Dues Beyond Two Years to Continuous Arrears