Supreme Court bars recovery of 1998 electricity dues as barred by limitation
The case involves a dispute over whether past electricity dues exceeding two years can be recovered, specifically regarding a demand for Minimum Consumption Guarantee Charges (MCGC) for the period from February 1998 to September 1998, which the Appellant (Dakschinanchal Vidyut Vitran Nigam Ltd.) sought to recover from the Respondent (Vidut Lokpal, Uttar Pradesh).
Appellant: Dakschinanchal Vidyut Vitran Nigam Ltd., Respondent: Vidut Lokpal, Uttar Pradesh and others, Bench: S.V.N. Bhatti, J. and N.V. Anjaria, J.
- The Supreme Court dismissed the appeal filed by Dakschinanchal Vidyut Vitran Nigam Ltd.
- The Court held that the demand for MCGC dated 13.02.2007 for the period February 1998 to September 1998 is barred by limitation under Section 56(2) of the Electricity Act, 2003.
- The Court stated that past dues beyond two years can be recovered only if continuously shown as arrear in bills.
- The Court referred to its earlier judgment in Assistant Engineer (D1), Ajmer Vidyut Vitran Nigam Limited and Another v. Rahamatullah Khan Alias Rahamjulla.
- The Court held that Section 56(2) restricts the right of the licensee to disconnect electricity supply after two years, but does not restrict other modes of recovery for supplementary demands.
Written from the document by AI, and checked against it. The original below is authoritative.
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Document details
| Official title | Electricity Act | Past Dues Beyond Two Years Can Be Recovered Only If Continuously Shown As Arrear : Supreme Court |
| Source body | Supreme Court of India — orders & judgments |
| Reference number | Writ Petition before the High Court, which had upheld the Ombudsman order, prompting the dist |
| Status | closed (order) |
| Year | 2026 |
| Closing date | — |
| Documents | 1 |