SUPREME COURT ON DEFAULT OF PAYMENT OF ELECTRICITY DUES
India is the world’s third largest producer and third largest consumer of electricity. Electricity has been incorporated in the 7 th Schedule of the Constitution of India as a concurrent list subject which connotes that both Central and State Governments are empowered to regulate policies and laws for the electricity sector. The Constitutional Bench of Apex Court in State of Andhra Pradesh v. National Thermal Power Corporation Ltd has held ‘Electricity’ as goods. It can be transmitted, transferred, delivered, possessed but cannot be stored. A purchaser of goods is liable to pay for it at the time of purchase or consumption under the Sale of Goods Act, 1930. The quantum and time of payment may be ascertained post facto either by way of an agreement or the relevant statute. The law relating to the generation, transmission, distribution and trading and use of Electricity is contained in the Electricity Act, 2003. The Act further empowers the licensee to disconnect the electricity su