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Interest on statutory deposit under Section 127(6) of the Electricity Act

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Judgment dated 11.12.2025 of the High Court of Bombay in Writ Petition No.8545 of 2015 of Illiyas Mangroo Shaikh  Vs.  Bombay Electricity Supply and Transport Undertaking and others

Section 127 of the Electricity Act, 2003 – Unauthorised Use of Electricity –

Interest on statutory deposit under Section 127(6) of the Electricity Act

During inspection of the factory and the meter cabin, it was found that although plastic processing machines were running, the meter did not show any corresponding load.

The petitioner had deposited Rs.6,75,000/- i.e. 50% of the assessed amount as per section 127(6) of the Electricity Act.  The appeal of the petitioner was allowed.  However, the interest on the statutory deposit was not granted.

Section 127(6) provides for a right to recover interest when the appeal fails and the consumer defaults in payment of the assessed amount.   However, the question was whether the consumer has a right to claim interest on the deposited amount in the case appeal is allowed.

 

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