This civil appeal arose from a surprise inspection conducted at the premises of the appellant, a High Tension consumer, where authorities subsequently issued a provisional assessment order amounting to over ₹3.23 crores alleging electricity theft under Section 135 of the Electricity Act, 2003. While the Single Judge of the High Court quashed the provisional assessment due to a lack of conclusive evidence in the inspection report, the Division Bench reversed this decision on the ground of alternative remedies. Setting aside the Division Bench ruling, the Supreme Court held that suspicion cannot replace strict proof, establishing that a provisional assessment order cannot be sustained unless the underlying inspection report explicitly records a finding of theft alongside concrete details of evidence collected. The Court further affirmed that a writ petition under Article 226 remains maintainable against provisional assessment orders since Section 127 provides a statutory appeal solely against final assessment orders.
- Core Issue: Whether a provisional assessment order for electricity theft under Section 135 of the Electricity Act, 2003, can be sustained when the inspection report lacks conclusive evidence, and whether a writ petition is maintainable against such a provisional order.
- Distinction Between Section 126 and Section 135: The Supreme Court reiterated the clear statutory distinction between “unauthorized use of electricity” under Section 126 (civil remedy where mens rea is not essential) and “theft of electricity” under Section 135 (which requires the strict twin tests of actus reus and mens rea proved beyond reasonable doubt).
- Mandatory Requirements of an Inspection Report: The Bench underscored that to hold any entity responsible for electricity theft, the inspection must explicitly detect theft and record specific evidence (such as tampered seals or seized material). Vague inspections and mere suspicion cannot form the basis of penalizing consumers. In this case, all plastic seals were intact and no material evidence was seized, rendering the allegations baseless.
- Maintainability of Writ Petitions: The Court clarified that since Section 127 of the Electricity Act provides a statutory appeal only against a final order of assessment and not a provisional one, a writ petition under Article 226 of the Constitution challenging a provisional assessment order is fully maintainable.
- Final Order: The Supreme Court allowed the appeal, set aside the Division Bench’s judgment, and restored the Single Judge’s order that favored the consumer.




