Summary: The Bombay High Court has overturned a previous decision and reinstated a charge against Khemlani Exports Pvt. Ltd. and others for using electricity without permission in a Mumbai industrial area.
Who’s Involved?
The Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) brought the case against several parties, including Khemlani Exports Pvt. Ltd. and Geo Chem Laboratories Pvt. Ltd. Justice Amit Borkar heard the case.
Where Did This Happen?
The issue occurred in Raja Industrial Estate, Mulund West, Mumbai.
What Was Found?
On January 5, 2010, MSEDCL’s inspection team checked the site and found that areas meant for industrial use were being used for business labs. This was clearly using electricity without permission according to Section 126 of the Electricity Act, 2003.
What Happened Next?
An initial charge was made on January 8, 2010, followed by a final charge on March 26, 2010. Khemlani Exports Pvt. Ltd. and others did not provide any proof of industrial activity or permission for business use.
What Did the Appellate Authority Decide?
The Appellate Authority initially canceled the official charge, seeing it as a pricing issue rather than unauthorized use. They suggested that MSEDCL should send an extra bill without using Section 126.
Why Was This a Problem?
MSEDCL argued that this decision ignored the legal rules and Supreme Court decisions, weakening the purpose of Section 126, which is to prevent unauthorized use.
What Did the Court Decide?
On November 28, 2025, the court canceled the appellate authority’s order dated August 1, 2011, and brought back MSEDCL’s final charge from March 26, 2010. The court stressed that unauthorized use should be charged at twice the normal rate as per Section 126(6).
Key Takeaways:
- Unauthorized use was confirmed based on the inspection findings.
- The appellate authority’s decision was found to be legally incorrect.
- Not knowing about pricing changes is not a valid excuse.
Summary of the Verdict:
The court has confirmed that Khemlani Exports Pvt. Ltd. and others were using electricity without permission and must pay twice the normal rate. The decision highlights the importance of following electricity use rules and the consequences of breaking them.
