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Section 142: Punishment for non-compliance of directions by Appropriate Commission

Electricity Act • Official Statutory Text & Practice Guide

Statutory Regulation
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Act 2003
Section 141 All 185 Sections of Electricity Act Section 143

Legal Commentary & Landmark Judgments: Section 142

Section 142 of the Electricity Act, 2003 penalizes non-compliance with directions issued by the Appropriate Commission, empowering the Commission to impose substantial financial penalties of up to one lakh rupees for each contravention, plus recurring daily fines of up to six thousand rupees.

  • Financial Retribution for Defying Commission Orders: Vests the Commission with coercive financial powers to penalize licensees, generating companies, or consumers who disregard its statutory directions or tariff mandates.
  • Cumulative Daily Escalating Fines: Imposes recurring penalties of up to six thousand rupees per day for every day during which the failure continues after the initial direction.
  • Requirement of Show-Cause Natural Justice: Obligates the Commission to issue a formal show-cause notice and provide an opportunity of hearing before imposing penalties.
Key Landmark Precedents:
  • Brihanmumbai Electric Supply v. MERC (2013) 4 SCC 71: Supreme Court affirmed that Section 142 provides the primary enforcement tooth enabling Regulatory Commissions to compel compliance with open access, supply, and consumer welfare mandates.
  • PTC India Ltd. v. CERC (2010) 4 SCC 603: Constitution Bench affirmed that Section 142 penalties ensure that Commission regulations are observed as binding statutory commands.
  • Tata Power Co. Ltd. v. Reliance Energy Ltd. (2009) 16 SCC 659: Supreme Court held that penalties under Section 142 must be proportionate to the gravity and duration of the regulatory violation.
Courtroom Practice & Strategic Litigation Guidance:

If a distribution licensee refuses to implement a tariff order or grant statutory open access, file a Section 142 execution petition before the State Commission praying for maximum financial penalties and personal recovery against the licensee's managing director.

Section 141 All 185 Sections of Electricity Act Section 143