Home  /  Electricity Act  /  Section 170

Section 170: Recovery of penalty payable under this Act

Electricity Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003
Section 169 All 185 Sections of Electricity Act Section 171

Legal Commentary & Landmark Judgments: Section 170

Section 170 of the Act provides for the recovery of penalties payable under the Act, establishing that any penalty imposed by the Commission or Adjudicating Officer shall be recoverable as arrears of land revenue.

  • Summary Recovery Mechanism as Land Revenue Arrears: Vests regulatory penalty orders with the coercive recovery powers of the revenue recovery code through the District Collector.
  • Attachment & Sale of Corporate Property: Empowers revenue authorities to attach corporate bank accounts, plant and machinery, and commercial real estate to satisfy unpaid penalties.
  • Priority Over Unsecured Creditors: Ensures that statutory penalties realized under the Act take priority over ordinary unsecured commercial liabilities.
Key Landmark Precedents:
  • State of Gujarat v. Vogue Garments (1983) 1 LLJ 255 (Guj HC): Affirmed that recovery of statutory dues as arrears of land revenue is a constitutionally valid exercise of sovereign enforcement power.
  • Organo Chemical Industries v. Union of India (1979) 4 SCC 573: Affirmed the summary enforceability of land revenue recovery certificates in statutory defaults.
  • PTC India Ltd. v. CERC (2010) 4 SCC 603: Affirmed that coercive recovery mechanisms ensure that regulatory financial penalties maintain real economic deterrence.
Courtroom Practice & Strategic Litigation Guidance:

To avoid sudden asset freeze or bank account attachment by the District Collector, corporate entities facing an adverse penalty order under Section 142 must either deposit the sum under protest or obtain an interim stay from APTEL under Section 111.

Section 169 All 185 Sections of Electricity Act Section 171