These civil appeals addressed common questions of law regarding the correct mechanism for assessing electricity charges and restoring power supply when a consumer is accused of theft of electricity under Section 135 of the Electricity Act, 2003. The distribution licensees argued that the summary assessment and deposit requirement for reconnection under the third proviso to Section 135(1A) are independent of Section 126 (unauthorized use) and Section 127 (appeals), and that civil liability is strictly preserved for determination by a Special Court under Section 154(5). The Supreme Court held that in the absence of a separate statutory procedure or designated assessing officer for theft under the Supply Code, the “assessed amount” required for seeking emergency restoration of supply under Section 135(1A) must be determined by adopting the procedure delineated under Section 126 (including filing objections and hearings). The Court clarified that while this assessed amount is subject to an appeal under Section 127 and acts as final for the limited purpose of reconnection, it remains ultimately subject to the final determination of civil liability by the Special Court under Section 154(5) in the event of criminal prosecution. Finding the High Court’s interim orders directing electricity restoration upon a 50% deposit to be sound, the Supreme Court dismissed both appeals with necessary legal clarifications.
- Assessment Procedure for Electricity Theft: In the absence of a distinct statutory procedure or assessing officer for theft under the Electricity Act, 2003 or the relevant Supply Code, the assessment of energy charges for restoration of supply under Section 135(1A) must utilize the mechanism and formula prescribed under Section 126 for unauthorized use of electricity.
- Right to File Objections and Appeals: Consumers accused of theft are entitled to file objections against a provisional assessment, ensuring natural justice, and can prefer an appeal under Section 127. However, the appellate determination remains final only for the limited purpose of securing a reconnection under Section 135(1A).
- Prerogative of the Special Court: The assessment and appeal under Sections 126 and 127 do not override or oust the jurisdiction of the Special Court under Section 154(5). Where a criminal complaint is filed, the Special Court retains the exclusive power to determine final civil liability, and any excess amount deposited by the consumer must be refunded with interest under Section 154(6).
- Discretion of Constitutional Courts: While electricity is an essential commodity for life and livelihood, High Courts must exercise a circumspect and cautious approach when entertaining writ petitions for restoration of power in theft cases, though ordering a deposit of not less than 50% of the assessed amount (aligned with Section 127(2)) as a condition for interim relief is legally sound.
