In Brief
An electricity distribution company issued a short assessment notice demanding recovery of over Rs. 1.35 crore for short billing due to a wrong multiply factor applied over three years. The consumer sought relief claiming negligence and that the two-year limitation bar under Section 56 of the Electricity Act, 2003 applied. The Supreme Court dismissed the appeal, holding that correcting a billing error does not constitute deficiency in service. The Court clarified that the two-year limitation bar applies only to consumer defaults in payment, not to licensee-initiated corrections of billing mistakes. Consumer forums must first determine if there was service deficiency before examining limitation defences.
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