M/S. Shree Mandir Foods PVT. LTD vs. The State Of Telangana

Facts

M/s. Shree Mandir Foods Pvt. Ltd. (Petitioner) operates an industry in a shed within an industrial zone. Initially, they shared a main power supply meter with another industry, M/s. Jagadamba Engineering Works. After M/s. Jagadamba Engineering Works vacated, the Petitioner's power consumption charges decreased. However, the Petitioner received a demand notice from the Assistant Divisional Engineer (Operation), Quthbullapur (3rd Respondent), dated 22.01.2025. This notice provisionally assessed electricity charges of Rs. 25,00,230/- due to alleged electricity theft from tampered meter seals and missing phase voltages. The Petitioner was directed to pay 50% of the assessed amount, plus supervision charges, GST, and reconnection charges. Aggrieved, the Petitioner filed a writ petition seeking to declare the notice illegal and arbitrary and to reconnect power supply.

Held

The Court disposed of the writ petition by directing the Petitioner to deposit 50% of the amount indicated in the impugned provisional assessment notice dated 22.01.2025 within two weeks of receiving the order. Upon this deposit, the respondents were directed to forthwith restore the power supply to the Petitioner's unit. Furthermore, the respondents were directed to refer the matter to the competent Court for the determination of civil liability as mandated under Section 154(5) of the Electricity Act, 2003, within two weeks thereafter. The Court also observed that until the competent Court disposes of the issue on merits, the respondents shall not initiate any coercive steps against the Petitioner. The reasoning was based on the submissions made by both the Petitioner's counsel and the Standing Counsel for the respondents, which were not disputed by the Petitioner. The Court found this course of action appropriate given the stage of the proceedings and the statutory provisions.

Key Issues

1. Whether the impugned notice in Lr.No.ADE/OP/Q PUR FD.No.3558, dated 22.01.2025, issued by the 3rd respondent, assessing provisional electricity charges of Rs. 25,00,230/-, pending determination of civil liability, is illegal, arbitrary, null, and void? Petitioner's contention: The Petitioner argued that the notice was illegal, arbitrary, null, and void and sought its setting aside, along with the reconnection of power supply. Respondents' contention: The learned Standing Counsel for the respondents submitted that for the determination of civil liability under Section 754 of the Electricity Act, 2003, the Petitioner is bound to deposit 50% of the amount indicated in the impugned provisional assessment notice. Upon deposit, the respondents would refer the issue to the competent Court under Section 154(5) of the Electricity Act, 2003, for determination of civil liability. Until the Court's disposal, no coercive steps would be initiated against the Petitioner.