Jurisdiction to Impose Civil Liabilities for Electricity Theft Lies with Special Court, Not Administrative Authorities: MP High Court

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Jurisdiction to Impose Civil Liabilities for Electricity Theft Lies    with Special Court, Not Administrative Authorities: MP High Court
By Abhishek Jat, Advocate

In a significant ruling, the Madhya Pradesh High Court has reaffirmed that the determination of civil liability in cases of electricity theft falls exclusively within the jurisdiction of the Special Court under the Electricity Act, 2003. The judgment, delivered by a single-judge bench of Justice Milind Ramesh Phadke, quashed an order issued by the Officer In-charge of M.P. Madhya Kshetra Vidyut Vitran Company Limited (MPMKVVCL), Shivpuri, which had imposed a civil liability of ₹1,93,561 on the petitioner for alleged electricity theft.

Background of the Case

The petitioner challenged the order dated July 23, 2022, issued by the Officer In-charge of MPMKVVCL, which invoked Section 135 of the Electricity Act, 2003, and imposed civil liability for alleged electricity theft. The petitioner contended that the determination of civil liability in cases of electricity theft is the exclusive domain of the Special Court, as mandated under Section 154(5) of the Electricity Act.

The petitioner argued that Chapter XIV of the Electricity Act, which includes Section 135, deals with "Offences and Penalties" and does not empower administrative authorities to unilaterally determine civil liability. The respondent authorities, however, defended the order, asserting that they were justified in imposing the liability under the provisions of the Electricity Act.

Key Legal Issues

The central issue before the High Court was whether administrative authorities, such as the Officer In-charge of MPMKVVCL, have the jurisdiction to impose civil liability for electricity theft, or whether such jurisdiction lies exclusively with the Special Court under Section 154(5) of the Electricity Act.

Court’s Observations and Ruling

The High Court examined the provisions of Sections 135 and 154 of the Electricity Act and observed the following:

  1. Exclusive Jurisdiction of the Special Court: The Court emphasized that Section 154(5) of the Electricity Act explicitly grants the Special Court exclusive jurisdiction to determine both penal actions and civil liabilities in cases of electricity theft. The Court noted that this provision leaves no room for administrative authorities to impose civil liability unilaterally.
  2. Precedent Relied Upon: The Court referred to the decision in Sangita v. State of M.P., 2008 SCC OnLine MP 328, where it was held that civil liability arising from electricity theft must be determined by the Special Court. This precedent reinforced the Court’s conclusion that administrative authorities cannot usurp the powers of the Special Court.
  3. Quashing of the Impugned Order: The Court found the order dated July 23, 2022, to be legally unsustainable, as it was issued without jurisdiction. Consequently, the Court quashed the order. However, it granted liberty to the respondents to approach the Competent Court under Section 154 of the Electricity Act for appropriate legal action.

Implications of the Judgment

This ruling serves as a crucial reminder of the statutory framework under the Electricity Act, 2003, and the clear demarcation of powers between administrative authorities and the Special Court. It underscores that civil liability in electricity theft cases cannot be unilaterally imposed by administrative authorities and must be determined by the Special Court.

This judgment highlights the importance of challenging orders that exceed the jurisdictional limits of administrative authorities. It also reinforces the principle that statutory provisions must be strictly adhered to, ensuring that legal processes are not bypassed or misapplied.

Conclusion

The Madhya Pradesh High Court’s decision in Naveen Kumar Jain v. M.P. Madhya Kshetra Vidyut Vitran Co. Ltd. reaffirms the exclusive jurisdiction of the Special Court in determining civil liability for electricity theft. By quashing the impugned order, the Court has upheld the rule of law and ensured that statutory provisions are interpreted and applied correctly.

This judgment is a significant addition to the jurisprudence surrounding the Electricity Act and serves as a guiding precedent for similar cases in the future.

 

 

 

 

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