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Punjab and Haryana High Court
Decided on: 14.10.2021

Electricity Act, 2003 (36 of 2003), Section 126, 135 – Specific Relief Act, 1963 (47 of 1963), Section 39 -- Code of Civil Procedure, 1908 (V of 1908), Section 9 -- Theft of electricity – Compounding of offence – Legality of -- Suit for mandatory injunction -- Memo demanding Rs.85,158/- allegedly committing offence of theft u/s 135 of Electricity Act – Another memo for compounding the offence on deposit of Rs.8,000/- as compounding fee – Lower Appellate Court found that it is not the case of the appellants-defendants-Vidyut Nigam  that the plaintiff was found to be abstracting the electricity energy by unauthorized means; So, there was no case of electricity theft by the plaintiff; M&T report show that the working of the meter is within limit; However, despite this fact, the instructions for dealing with the cases of theft of electricity vide sale circular No.U-15/2014 have not been complied with; Section 126 of the Indian Electricity Act, 2003 provides that any theft of electricity energy shall be communicated in the shape of order of provisional assessment to the person who may be aggrieved; Requirement of Section 126 for the assessment of amount for theft of electricity has not been complied with by the defendants; Defendants-Vidyut Nigam are not entitled for the recovery of assessment vide impugned notice; However, there is no illegality in service of notice u/s 135 of Electricity Act as the same was issued for the compounding fee, which is permissible under the provisions of Electricity Act – Held, there seems no perversity or illegality in the concurrent findings of facts returned by the Courts below -- No interference called for to disturb the said concurrent findings.

(Para 3, 8, 9)

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