Summary: The Bombay High Court made a decision on a case involving the Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) and several businesses accused of using electricity without permission. The court canceled a previous decision and reinstated MSEDCL's findings.
This case involves MSEDCL, a government-owned electricity provider in Maharashtra, and several businesses, including Supreme Metal Industries and Geo Chem Laboratories Pvt. Ltd. MSEDCL accused these businesses of using electricity in ways they weren't supposed to.
On January 5, 2010, MSEDCL's inspection team checked out some places in the Raja Industrial Estate, Mulund West, Mumbai. They found that businesses were doing commercial work instead of the approved industrial work. Geo Chem Laboratories was said to be running a commercial lab without the right permissions.
"The inspection report clearly showed commercial use. Such use falls under Section 126(6)(b)(i) because electricity was used for a purpose other than what was approved."
MSEDCL gave a preliminary assessment on January 8, 2010, and a final assessment on March 26, 2010. Geo Chem Laboratories appealed, saying they didn't know about changes in electricity rates and that their work was industrial.
The court, led by Judge Amit Borkar, looked into whether a tenant could be seen as a customer according to the Electricity Act, 2003. It was decided that Geo Chem Laboratories did not qualify as a customer under the law.
"The legal definition must be used in a way that keeps the rules strong, not weakens them."
The court found clear proof of unauthorized use under Section 126, as the places were used for commercial activities without the right permissions.
"The inspection by the team showed that the places meant only for industrial work were being used for commercial laboratory and testing work."
The court canceled the decision from the Appellate Authority made on August 1, 2011, and brought back MSEDCL's final assessment from March 26, 2010. The court stressed that not knowing about changes in electricity rates is not a good excuse.
The court decided that the businesses were using electricity without permission and reinstated MSEDCL's original findings. This decision shows the importance of following the rules for electricity use and the consequences of not doing so.
