S.154 Electricity Act | Only Special Court Can Decide Civil Liability For Energy Theft, State Distributor Can't Usurp Power: MP High Court
The Madhya Pradesh High Court has held that only a Special Court constituted under Section 154 of the Electricity Act, 2003 can determine civil liability for theft of energy, and that electricity distribution authorities cannot usurp such power. [2026 LiveLaw (MP) 294]In doing so, the Court set aside an order of the MP Madhya Kshetra Vidyut Vitaran Co. Ltd. determining the petitioner's...
The Madhya Pradesh High Court has held that only a Special Court constituted under Section 154 of the Electricity Act, 2003 can determine civil liability for theft of energy, and that electricity distribution authorities cannot usurp such power. [2026 LiveLaw (MP) 294]
In doing so, the Court set aside an order of the MP Madhya Kshetra Vidyut Vitaran Co. Ltd. determining the petitioner's civil liability of ₹1.16 lakh for alleged electricity theft.
The bench of Justice Milind Ramesh Phadke held,
"As per Sub Section 5 of Section 154 of the Act, the Special Court is even empowered to determine the civil liability against the consumer or a person in terms of money for theft of energy. Thus, when the Special Court is very well empowered to determine the civil liability apart from taking any penal action against the person who has committed theft of energy, the authorities could not have usurped such powers and could not had determined the liability and could not have raised a demand of Rs.1,16,734/- vide Annexure P/1 dated 19.12.2023".
A petition was filed by the petitioner challenging the order of the Officer-in-Charge of the said department. Per the order, the petitioner was directed to deposit the aforementioned amount.
The counsel for the petitioner argued that Section 135 of the Act falls under the chapter "offences and penalties". However, examining Section 154(5) of the Act, a Special Court is empowered to determine the civil liability against the consumer or person regarding theft of energy.
The counsel further argued that the cognisance of the said theft is taken under Section 135; however, the authority which is empowered to do so is a Special Court under Section 154 of the Act.
The petition was thereby allowed, and the impugned order was set aside.
Case Title: Narendra Kumar Ojha v State of Madhya Pradesh, WP-28733-2025
Citation: 2026 LiveLaw (MP) 294
For Petitioner: Advocate Siddharth Sijoria