Section 56 Electricity Act: Disconnection of supply in default of payment

Section 56 of Electricity Act: Disconnection of supply in default of payment

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

(1) Where any person neglects to pay any charge for electricity or any sum other than a charge for electricity due from him to a licensee or the generating company in respect of supply, transmission or distribution or wheeling of electricity to him, the licensee or the generating company may, after giving not less than fifteen clear days' notice in writing, to such person and without prejudice to his rights to recover such charge or other sum by suit, cut off the supply of electricity and for that purpose cut or disconnect any electric supply line or other works being the property of such licensee or the generating company through which electricity may have been supplied, transmitted, distributed or wheeled and may discontinue the supply until such charge or other sum, together with any expenses incurred by him in cutting off and reconnecting the supply, are paid, but no longer:

Provided that the supply of electricity shall not be cut off if such person deposits, under protest,—

(a) an amount equal to the sum claimed from him, or

(b) the electricity charges due from him for each month calculated on the basis of average charge for electricity paid by him during the preceding six months,

whichever is less, pending disposal of any dispute between him and the licensee.

(2) Notwithstanding anything contained in any other law for the time being in force, no sum due from any consumer, under this section shall be recoverable after the period of two years from the date when such sum became first due unless such sum has been shown continuously as recoverable as arrear of charges for electricity supplied and the licensee shall not cut off the supply of the electricity.

Legal Commentary & Landmark Judgments: Section 56

Section 56 of the Electricity Act, 2003 regulates the disconnection of supply in default of payment, prescribing a mandatory fifteen-day written notice and enacting a strict two-year limitation bar under subsection (2) against recovering past arrears.

Mandatory Fifteen Clear Days' Written Notice: Requires the licensee to serve not less than fifteen clear days' notice in writing before disconnecting supply for non-payment of electricity charges.
Strict Two-Year Recovery Limitation Bar under Sec 56(2): Explicitly bars the licensee from disconnecting supply or recovering any sum due after the period of two years from the date when such sum first became due, unless continuously shown as recoverable arrears.
Immediate Reconnection Upon Payment: Obligates the licensee to restore electricity supply within twenty-four hours upon the consumer paying the defaulted sum together with prescribed reconnection charges.

Key Landmark Precedents:

Prem Cottex v. Uttar Haryana Bijli Vitran Nigam Ltd. (2021) 16 SCC 497: Supreme Court analyzed Section 56(2), holding that the two-year limitation bar restricts the summary remedy of disconnection, but does not extinguish the licensee's underlying contractual right to file a civil suit for debt recovery within three years.
Assistant Engineer (D1), Ajmer Vidyut Vitran Nigam Ltd. v. Rahamatullah Khan (2020) 4 SCC 650: Supreme Court held that electricity dues first become due when the licensee raises a regular bill; the limitation period of two years runs from the date of the bill, not the date of consumption.
Kusumam Hotels Pvt. Ltd. v. KSEB (2008) 13 SCC 23: Supreme Court held that retrospective tariff demands raised years later cannot be recovered through coercive disconnection without giving fair hearing.

Courtroom Practice & Strategic Litigation Guidance:

If a licensee issues a disconnection threat for supplementary charges or tariff adjustments dating back more than two years without prior billing, file an immediate objection under Section 56(2) citing Rahamatullah Khan, or petition the Consumer Grievance Redressal Forum (CGRF) for an immediate interim stay.

Section 56: Disconnection of supply in default of payment

Section 56 of Electricity Act: Disconnection of supply in default of payment

Legal Commentary & Landmark Judgments: Section 56