In Brief
A manufacturing company challenged a short assessment notice demanding ₹1.35 crores for electricity billing errors spanning three years. The electricity company claimed it had wrongly applied a multiply factor of 5 instead of 10 in meter readings. The consumer argued that the two-year limitation period in Section 56(2) of the Electricity Act, 2003 barred recovery, and that the demand constituted deficient service. The Supreme Court dismissed the appeal, holding that 'first due' occurs when a bill is issued (not consumption), the limitation period commences from bill issuance, and raising a corrected demand for admitted short-billing is not a deficiency in service. The limitation bar applies only to consumer negligence, not licensee errors."
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