Bombay High Court
The Maharashtra State Electricity ... vs M/S Harman Fino Chem Private Limited ... on 27 February, 2026
2026:BHC-AUG:9634
1 of 12 72-WP.9470.2016-J
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
72 WRIT PETITION NO. 9470 OF 2016
1. The Maharashtra State Electricity
Distribution Company Ltd.,
Rural Circle, Nodal Officer, Aurangabad
Through its Superintending Engineer.
2. The Additional Executive Engineer,
Flying Squad, Aurangabad Rural,
Aurangabad. ... Petitioners
Versus
M/s. Harman Fino Chem Private Limited,
Plot No.A-100/1, MIDC Shendra, Aurangabad,
District:- Aurangabad.
Through Its Managing Director ... Respondent
...
Mr. Avishkar S. Shelke, Advocate for the Petitioners.
Dr. Birendra Saraf, Senior Advocate i/b. Mr. Subodh P. Shah, Advocate
for Respondent.
...
CORAM : SIDDHESHWAR S. THOMBRE, J.
DATE : 27th FEBRUARY, 2026
JUDGMENT:-
1. Rule. Rule made returnable forthwith. By consent of the parties, heard finally at the admission stage.
2. Learned Advocates for the respective parties.
3. By the present petition, the Petitioner is aggrieved by the order dated 04.05.2016, passed by Consumer Grievance Redressal Forum (CGRF), Aurangabad Zone, MSEDCL, Aurangabad in Case Tauseef 2 of 12 72-WP.9470.2016-J No.CGRF/AZ/AUR/R/577/2016/08.
4. Brief facts of the case:-
(i). The Petitioner is authority constituted under the provisions of the Electricity Act, 2003 (for short "the Act 2003") and engaged in operation and maintenance of the electricity. The Respondent herein is a consumer of the Petitioner-Company with Consumer No.490539009950 having CD-2355 KVA and CL-3207 KW from 29.03.2015. The complainant initially obtained LT connection of 15 KW. The complainant Consumer was santioned 33 KV HT supply for Industrial purpose on 29.03.2015.
(ii). On 01.10.2015, inspection was carried out and on the basis of that inspection, report was submitted that no production activity was carried out at the site and construction work and internal machinery installation was going on.
(iii). Pursuant to that inspection report, the Assessing Officer visited the Respondent-Company along with other officers of the Petitioner and further directed the Executive Engineer, Rural Division to cause detail inspection of the premises of the Respondent-Company.
(iv). On 15.10.2015, the Executive Engineer, Rural Circle, Aurangabad inspected the premises of the company and video recording of the Tauseef 3 of 12 72-WP.9470.2016-J inspection was done and same inspection was signed by the representative of the Respondent.
(v). On the basis of the inspection report dated 01.10.2015 and spot inspection report dated 15.10.2015, the Assessing Officer issued a provisional assessment under section 126 of the Act 2003 and by observing that the connection was being used for the purpose other than for which the usage of electricity was permitted. Therefore, the assessment order was issued and called upon the Respondent to pay the amount of Rs.4,86,09,032.49/- and pursuant to that provisional assessment and after giving an opportunity of hearing, Respondent was called for personal hearing. The Assessing Officer recorded the finding that the Respondent indulged in unauthorized use of electricity within the meaning of Section 126 (6)(iv) of the Act 2003 and confirmed the provisional assessment order dated 02.01.2016 and passed final assessment order dated 08.02.2016 under Section 126 of the Act 2003.
(vi). Being aggrieved by the same, Respondent-Company approached the Consumer Grievance Redressal Forum and after receipt of the notice, the Petitioner appeared before the CGRF and raised the ground that in view of the Regulation 6.8 of MERC (CGRF and Electricity Ombudsman Regulation) 2006 (for short "Regulations, Tauseef 4 of 12 72-WP.9470.2016-J 2006"), the grievance of the Respondent-Company was excluded from the jurisdiction of the forum. The CGRF allowed the grievance of the Respondent and declared that the grievance does not fall under the preview of Section 126 of the Act 2003 and directed the Petitioner to withdraw the assessment bill issued under Section 126 of the Act 2003. Hence, the present petition is filed.
5. Mr. Avishkar Shelke, learned Advocate for the Petitioner submits that as per the inspection report and pursuant to that, the provisional assessment order came to be issued and after hearing the Respondent, final assessment order was issued under Section 126 of the Act 2003. Therefore, he submits that the Petitioner is having remedy to file an appeal under Section 127 of the Act 2003.
6. Therefore, he canvassed the argument principally on this ground that once the order is passed under Section 126, then the forums jurisdiction to entertain is excluded as per Regulation 6.8 of Regulations, 2006 and, therefore, on this ground, he submits that the order passed by CGRF is without jurisdiction and nullity in the eyes of the law.
7. Per contra, Dr. Birendra Saraf, learned Senior Advocate instructed by Mr. Subodh Shah invited attention of this Court to the Tauseef 5 of 12 72-WP.9470.2016-J inspection report as well as the order passed by the Assessing Officer. He submitted that even in the panchanama, it only shows that the construction activities were going on and contended that spot inspection conducted by the Additional Executive Engineer itself was without jurisdiction. He invited my attention to Section 126 of the Act 2003 as well as to clause 24.1.2 of the conditions of supply based on the Maharashtra Electricity Regulatory Commission (Electricity Supply Code and Other Conditions of Supply) Regulations, 2005 (for short "Regulations, 2005") which reads as under:-
"Regulation No. 24.1.2 "Assessing officer"
Assessing officer means an officer of the state Govt. or the supplier/Franchisee, as may be designated by the state Govt. The State Govt. as per its notification No.IEA/2006/ C.R.477(1)/ NRG-3 dt. 26/09/2006 has designated following officers of MSEDCL as Assessing officer."
Sr. No. Consumer Category Designated/Assessing officer
1. Low tension consumers Asst. Engg./ Dy. Ex. Engg.
Dy. Ex. Engg (Flying squad) Ex. Engineer (O&M)
2. High Tension Consumers Supdt. Engineer/Chief Engineer "
. He further invited my attention to Regulation Nos. 24.2.1 and 24.2.2 of Regulations, 2005, which are reproduced as follows:-
"Regulation No.24.2.1:
Whenever as Assessing officer suspects or has reasons belive that a person is indulging in "Unauthorised use of Electricity" the Assessing ofifcer shall immedialetly inspect such premsies or any such equipments, gadgets, machines, devices etc as the case may be.. Such inspection shallbe recorded in a log book tobe maintained by Assessing ofifcer along with name of Assesisng offocer and deatils of visit to the consumers premsies.
Tauseef 6 of 12 72-WP.9470.2016-J Regulation No.24.2.2:
The Assessing ofifce or representative appointed by hin shall inspect any such place or premsies in the presence of the occupants if the situation so warrants."
. He submits that the Additional Executive Engineer, F.S., Aurangabad Rural was not a designated officer to conduct the inspection and, therefore, on this ground, the inspection report itself is contrary to this regulation.
8. Mr. Saraf, learned Senior Advocate further contended and invited my attention to the Maharashtra Electricity Regulatory Commission (Consumer Grievance Redressal Forum and Electricity Ombudsman) Regulations, 2020. He submitted that the CGRF is required to record findings in accordance with the applicable Regulations. He pointed out that the CGRF has recorded a finding that the Inspecting Officer did not record the inspection in the log-book.
9. He further referred to the provisions of the Electricity Act, 2003, the Regulations of 2006 and the subsequent amended Regulations. It was submitted that the CGRF, after visiting the premises, recorded a finding that the Inspecting Officer had not recorded the inspection in the log-book. He also contended that the report was submitted by the Additional Executive Engineer, F.S., Aurangabad Rural, who was not authorized to inspect a high-tension consumer under Clauses 24.1.2 of the Regulations, 2005 and without any proper Tauseef 7 of 12 72-WP.9470.2016-J application of Section 126 of the Electricity Act, 2003, passed an order which was not based on the true facts.
10. He further submitted that as per Regulation 6.8 of Regulations, 2006, it is for the Forum to satisfied itself and record reasons for the same that the grievance referred to it falls within its jurisdiction. According to him, the issue pertained to alleged unauthorized use of electricity under Section 126 of the Electricity Act, 2003. After considering the entire record and visiting the spot, the CGRF recorded a prima facie finding that the Respondent was not indulging in unauthorized use of electricity under Section 126 of the Act. Therefore, he submitted that the order passed by the CGRF is well within its jurisdiction.
11. After hearing the learned Advocates for the respective parties at length, I find that certain admitted facts require consideration. To consider the controversy involved, it is necessary to refer Section 126 of the Act 2003, which reads as under:-
"Section 126: (Assessment): --- (1) If on an inspection of any place or premises or after inspection of the equipments, gadgets, machines, devices found connected or used, or after inspection of records maintained by any person, the assessing officer comes to the conclusion that such person is indulging in unauthorized use of electricity, he shall provisionally assess to the best of his judgement the electricity charges payable by such person or by any other person benefited by such use.(2) The order of provisional assessment shall be served upon the person in occupation or possession or in charge of the place or premises in such manner as may be prescribed.[(3) The person, on whom an Tauseef 8 of 12 72-WP.9470.2016-J order has been served under sub- section (2) shall be entitled to file objections, if any, against the provisional assessment before the assessing officer, who shall, after affording a reasonable opportunity of hearing to such person, pass a final order of assessment within thirty days from the date of service of such order of provisional assessment of the electricity charges payable by such person.] (4) Any person served with the order of provisional assessment, may, accept such assessment and deposit the assessed amount with the licensee within seven days of service of such provisional assessment order upon him:
2 [***] [(5) If the assessing officer reaches to the conclusion that unauthorised use of electricity has taken place, the assessment shall be made for the entire period during which such unauthorized use of electricity has taken place and if, however, the period during which such unauthorised use of electricity has taken place cannot be ascertained, such period shall be limited to a period of twelve months immediately preceding the date of inspection.]
6) The assessment under this section shall be made at a rate equal to [twice] the tariff rates applicable for the relevant category of services specified in sub-section (5).
Explanation.- For the purposes of this section,-
(a) "assessing officer" means an officer of a State Government or Board or licensee, as the case may be, designated as such by the State Government;
(b) "unauthorised use of electricity" means the usage of electricity
-
(i) by any artificial means; or
(ii) by a means not authorised by the concerned person or authority or licensee; or
(iii) through a tampered meter; or [(iv) for the purpose other than for which the usage of electricity was authorised; or
(v) for the premises or areas other than those for which the supply of electricity was authorized."]"
12. After going through the order, admittedly, the fact on the record shows that the order is passed under Section 126 of the Act 2003 and Section 127 provides the remedy of appeal, which reads as under:-
Tauseef 9 of 12 72-WP.9470.2016-J "Section 127. (Appeal to Appellate Authority): --- (1) Any person aggrieved by the final order made under section 126 may, within thirty days of the said order, prefer an appeal in such form, verified in such manner and be accompanied by such fee as may be specified by the State Commission, to an appellate authority as may be prescribed.
(2) No appeal against an order of assessment under sub- section (1) shall be entertained unless an amount equal to 3 [half of the assessed amount] is deposited in cash or by way of bank draft with the licensee and documentary evidence of such deposit has been enclosed along with the appeal.
(3) The appellate authority referred to in sub-section (1) shall dispose of the appeal after hearing the parties and pass appropriate order and send copy of the order to the assessing officer and the appellant.
(4) The order of the appellate authority referred to in sub- section (1) passed under sub-section (3) shall be final. (5) No appeal shall lie to the appellate authority referred to in sub-section (1) against the final order made with the consent of the parties.
(6) When a person defaults in making payment of assessed amount, he, in addition to the assessed amount shall be liable to pay, on the expiry of thirty days from the date of order of assessment, an amount of interest at the rate of sixteen per cent, per annum compounded every six months."
. Regulation 6.8 of Regulations, 2006, which reads as under:-
"6.8 If the Forum is prima facie of the view that any grievance referred to it falls within the purview of any of the following provisions of the Act. The same shall be excluded from the jurisdiction of the Forum:
(a) Unauthorized use of Electricity provided under Section 126 of the Act.
....."
Tauseef 10 of 12 72-WP.9470.2016-J
13. There is no dispute regarding the issuance of the provisional bill. There is also no dispute about the inspection carried out by the competent authority. The action taken against the Respondent was under Section 126 of the Electricity Act, 2003. It is further undisputed that the final assessment order was passed after affording an opportunity of hearing to the Respondent.
14. In view of the provisions of Section 127 of the Electricity Act, 2003 and considering Regulation 6.8 of Regulations, 2006, whereby the jurisdiction of the Consumer Grievance Redressal Forum (CGRF) is expressly excluded in matters relating to unauthorized use of electricity, I find that the issue in the present case pertains to unauthorized use of electricity under Section 126 of the Act, 2003.
Once a statutory remedy of appeal is available to the Respondent under Section 127 of the Act and particularly when the jurisdiction of the Forum is barred under Regulation 6.8 of Regulations, 2006. The CGRF ought not have entertained the grievance. Consequently, the order passed by the CGRF is without jurisdiction. Therefore, without entering into the inter se merits of the matter, I am inclined to allow the writ petition on the limited ground that against the final assessment order issued under Section 126 of the Electricity Act, 2003, the Respondent has an efficacious alternate statutory remedy of appeal under Section 127 of the Act. Accordingly, without Tauseef 11 of 12 72-WP.9470.2016-J recording any findings on the merits of the case, the writ petition deserves to be allowed partly by setting aside the order dated 04.05.2016 passed by the Consumer Grievance Redressal Forum (CGRF), Aurangabad Zone, Aurangabad in Case No. CGRF/AZ/AUR/R/577/2016/08. Hence, I proceed to pass following order:-
ORDER
(i). Writ petition is partly allowed.
(ii). The order dated 04.05.2016, passed by Consumer Grievance Redressal Forum (CGRF), Aurangabad Zone, MSEDCL, Aurangabad in Case No.CGRF/AZ/AUR/ R/577/2016/08 is quashed and set aside.
(iii). The Petitioner is restrained from taking any coercive action against the Respondent for a period of eight weeks from today.
(iv). The Respondent is at liberty to file an appeal under Section 127 of the Act 2003 within a period of eight weeks from today.
(iv). Delay caused while prosecuting the present petition shall be taken into consideration by the Appellate Authority while considering the application for delay in Tauseef 12 of 12 72-WP.9470.2016-J filing appeal under Section 127 of the Act 2003. If the Respondent files an appeal within the above said period.
(v). All points are kept open.
(vi). Rule is made absolute in the above terms.
(SIDDHESHWAR S. THOMBRE, J.) Tauseef