Consumer Status and Refund Claim: A Revision Petition in Electricity Billing Dispute.
22 July 2025
Consumer Protection Act >> Consumer Rights
This revision petition, filed under Section 21(b) of the Consumer Protection Act, 1986, challenges the State Consumer Disputes Redressal Commission's decision, which had overturned a ruling from the District Commission in favor of the complainant, a company disputing over a higher electricity bill. The petitioner had initially received a 5600 KVA electricity connection, later reduced to 3000 KVA. Following the reduction, the electricity bill issued by the Power Distribution Company was higher than expected, and the company paid the amount under protest. The petitioner sought a refund of the overpaid amount, along with interest and compensation for mental distress.
The District Commission had ruled in favor of the complainant, directing a refund with interest and compensation, but the State Commission reversed this decision, asserting that the complainant company did not qualify as a "consumer" under the Consumer Protection Act. The dispute centers around whether the company, which uses electricity for manufacturing, qualifies as a consumer under the law.
The Supreme Court's decision in Karnataka Power Transmission Corporation vs. Ashok Iron Works and the more recent National Insurance Co. Ltd. vs. Harsolia Motors were cited, emphasizing that each case must be assessed on its specific facts. The complainant's claim was ultimately seen as an attempt to recover overpaid amounts for electricity used in its industrial operations, which does not qualify as a "commercial purpose" under the Consumer Protection Act.
The revision petition was allowed, setting aside the State Commission's decision, and the District Commission's ruling was upheld. The Power Distribution Company was directed to pay the refund within eight weeks, with interest accruing from the date of default.