VidhiSangh

Supreme Court of India · 05/10/2021

M/S PREM COTTEX versus UTTAR HARYANA BIJLI VITRAN NIGAM LTD. & ORS.

[2021] 8 S.C.R. 645 · 2021 INSC 617

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Summary

The Court upheld dismissal of a consumer complaint against a supplementary electricity demand correcting an admitted multiplying-factor error. Raising the corrected short-assessment demand did not itself establish deficiency in service. Section 56(2)’s bar concerns recovery and disconnection, but limitation did not run against an amount never previously billed: neglect to pay could arise only after demand. The earlier Rahamatullah Khan decision was distinguished. The consumer was granted eight weeks to pay the balance after its interim deposit.

Issues

  1. Whether correcting undisputed short billing by supplementary demand constituted deficiency in service.
  2. Whether Section 56(2) barred recovery or disconnection for charges omitted through the licensee’s billing mistake.
  3. How the earlier Rahamatullah Khan decision applied to this demand.

Provisions considered

Held

Result

Appeal dismissed; consumer given eight weeks to pay the balance demand after credit for its interim payments. No costs.

Judgment PDF: Supreme Court of India, [2021] 8 S.C.R. 645.