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Consumer Complaint Not Maintainable Against Power Distributor For Raising Additional Bill Due To Short Assessment : Supreme Court
LIVELAW NEWS NETWORK
12 Oct 2021 8:57 AM GMT
The Supreme Court has held that a consumer complaint is not maintainable against a power distributor for raising an additional bill on account of short-assessment.A bench comprising Justices Hemant Gupta and V Ramasubramanian agreed with the finding of the National Consumer Disputes Redressal Commission that the raising of additional bill did not amount to "deficiency in service" as defined...
The Supreme Court has held that a consumer complaint is not maintainable against a power distributor for raising an additional bill on account of short-assessment.
A bench comprising Justices Hemant Gupta and V Ramasubramanian agreed with the finding of the National Consumer Disputes Redressal Commission that the raising of additional bill did not amount to "deficiency in service" as defined under the Consumer Protection Act.
Background facts
The consumer had earlier approached the National Consumer Disputes Redressal Commission against the demand. The NCDRC however dismissed the complaint, holding that there was no 'deficiency of service' on the part of the power company and that the bill was for recovery of "escaped assessment". The consumer appealed to the Supreme Court against the NCDRC order.
Raising additional demand not a "deficiency in service"
A bench comprising Justices Hemant Gupta and V Ramasubramanian first considered the issue whether raising the additional demand will amount to "deficiency in service" within the meaning of the Consumer Protection Act.
The Court held that raising additional demand by itself will not amount to a "deficiency in service".
"The raising of an additional demand in the form of "short assessment notice", on the ground that in the bills raised during a particular period of time, the multiply factor was wrongly mentioned, cannot tantamount to deficiency in service. If a licensee discovers in the course of audit or otherwise that a consumer has been short billed, the licensee is certainly entitled to raise a demand. So long as the consumer does not dispute the correctness of the claim made by the licensee that there was short assessment, it is not open to the consumer to claim that there was any deficiency. This is why, the National Commission, in the impugned order correctly points out that it is a case of "escaped assessment" and not "deficiency in service"".
Observing as above, the bench held the dismissal of NCDRC as "perfectly in order".
Also held in the judgment - Electricity Act - Additional Bill Raised By Distributor After Detecting Mistake Not Hit By 2 Years Limitation Under Section 56(2) : Supreme Court
Case Title: M/S Prem Cottex v Uttar Haryana Bijli Vitran Nigam Ltd & Ors| Civil Appeal Number 7235 of 2009
Coram: Justice Hemant Gupta and Justice V Ramasubramanian
Appearances : Advocate KC Mittal for appellant; Additional Advocate General Of Haryana Govt Arun Bhardwaj for respondent
Citation : LL 2021 SC 541
Click Here To Read/ Download Order
