Assessment
Section 126 of the Electricity Act, 2003 deals with assessment. If on an inspection of any place or premises or after inspection of the equipments, gadgets, machines, devices found connected or used, or after inspection of records maintained by any person, the assessing officer comes to the conclusion that such person is indulging in unauthorised use of electric The Act came into force on 10 Jun 2003.
(1) If on an inspection of any place or premises or after inspection of the equipments, gadgets, machines, devices found connected or used, or after inspection of records maintained by any person, the assessing officer comes to the conclusion that such person is indulging in unauthorised use of electricity, he shall provisionally assess to the best of his judgment the electricity charges payable by such person or by any other person benefited by such use.
(2) The order of provisional assessment shall be served upon the person in occupation or possession or in charge of the place or premises in such manner as may be prescribed.
1 [(3) The person, on whom an order has been served under sub-section (2), shall be entitled to file objections, if any, against the provisional assessment before the assessing officer, who shall, after affording a reasonable opportunity of hearing to such person, pass a final order of assessment within thirty days from the date of service of such order of provisional assessment, of the electricity charges payable by such person.]
(4) Any person served with the order of provisional assessment may, accept such assessment and deposit the assessed amount with the licensee within seven days of service of such provisional assessment order upon him:
2 * * * * *
3 [(5) If the assessing officer reaches to the conclusion that unauthorised use of electricity has taken place, the assessment shall be made for the entire period during which such unauthorised use of electricity has taken place and if, however, the period during which such unauthorised use of electricity has taken place cannot be ascertained, such period shall be limited to a period of twelve months immediately preceding the date of inspection.]
(6) The assessment under this section shall be made at a rate equal to 4 [twice] the tariff rates applicable for the relevant category of services specified in sub-section (5).
Explanation.--For the purposes of this section,--
(a) "assessing officer" means an officer of a State Government or Board or licensee, as the case may be, designated as such by the State Government;
(b) "unauthorised use of electricity" means the usage of electricity--
(i) by any artificial means; or
(ii) by a means not authorised by the concerned person or authority or licensee; or
(iii) through a tampered meter; or
5 [(iv) for the purpose other than for which the usage of electricity was authorised; or
(v) for the premises or areas other than those for which the supply of electricity was authorised.]
Section 126, The Electricity Act, 2003 (Act 36 of 2003).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Kerala State Electricity Board v. Thomas Joseph
Court's Decision & Legal Precedent
Judgement of Main Case order-20.pdf 2022-12-16. CA 9252-9253/2022. J.B. Pardiwala. DATE-CHECK false positive (2017-04-12 Kerala HC); body is the named REPORTABLE batch against Thomas Joseph. Isolates Electricity 126: overdrawal beyond sanctioned/connected load is ‘unauthorised use’ under Explanation (b); assessment is at twice the applicable tariff (fixed plus energy), and 126 (civil assessment, no mens rea) is distinct from 135 theft. Same-tariff excess load already metered is treated differently from use in a higher-tariff category. Order-19.pdf same date is ROP — skip 19. Do not pad 135 (theft) or 111/178 (already filled by PTC).
On this section: Electricity 126: overdrawal beyond connected/contracted load is unauthorised use; assessment is twice tariff; 126 is not 135 theft (Thomas Joseph). Do not pad 135/111/178.
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Chairman, W. B. S. Electricity Board vs Syed Mukbul Hossain
Court's Decision & Legal Precedent
While a statutory authority like the State Electricity Board has the authority to disconnect electricity supply for alleged meter tampering or electricity theft as permitted under applicable regulations, the exercise of such authority must strictly comply with the prescribed procedural requirements. A disconnection effected without following due procedure constitutes a breach of the regulatory framework and entitles the consumer to judicial relief including restoration of supply and compensation. However, the substantive merits of the assessment amount itself must be examined through the statutory appeal mechanism provided under the Electricity Act, and consumers retain their rights to file objections under Section 126 and appeals under Section 127 of the Electricity Act 2003.
On this section: Consumer's right to file objection against provisional assessment for alleged theft of electricity. Court held that this right exists and must be exercised before final assessment
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… The assessment order has been issued way back on 03.06.2017. The said assessment orders were challenged by the petitioner in the appeal, and the appellate authority set aside the assessment order with a direction to collect only fixed charges under Section 126 of the Electricity Act. In view thereof, the excess amount collected from the petitioner was refunded. 126 of the Electricity Act. The Board was not successful in challenging the appellate orders before this Court. However, the liberty was granted to the Board, depending on the outcome of the judgment in Thomas …
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… Supreme Court in Thomas Joseph (supra), the respondent Board issued a notice to the petitioner for remitting the energy charges assessed under Section 126 of the Electricity Act along with interest. 7. The petitioner has remitted the charges as per the assessment orders issued by the assessing authority under Section 126 of the Electricity Act. However, they disputed the liability regarding payment of interest. The learned counsel for the petitioner submits that the petitioner had succeeded before the appellate authority and before this Court, wherein the petitioner was not liable to pay the energy charges under Section 126 of …
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… Thus the Electricity Act no doubt is complete code by itself. 12. It is pertinent to note that in respect of the assessments made under Section 126 of the Electricity Act, the Act itself provides a complete mechanism for redressal of the grievances. This Court cannot be oblivious of the fact that the jurisdiction of the Civil Court is barred in terms of the provision contained under Section 145 of the Electricity Act. Section 145 of the Electricity Act, reads …
Made under this section, and citing it
3 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
- Amendment in the MP Electricity (service of Provisional Assessment order) Rules 2004Rule 2013
- Madhya Pradesh Electricity(service of provisional assessment order)Rules 2004Rule 2004
- Inspecting Officer, Assessing Officer and Compounding Officer under under Sections 126, 135 & 152 Electrcity Act 2003Notification 2003
Another 10 instruments name this provision in its title or its text without being made under it.
- CSERC (Redressal of Grievances of the Consumers) Regulations, 2023.Regulation 2023
- UP Electricity Regulatory Commission (Consumer Grievance Redressal Forum) Regulations, 2022Regulation 2022
- Electricity (Rights of Consumers) Rules, 2020Rule 2020
- The Electricity (Amendment) Rules, 2020Rule 2020
- Delhi Electricity Regulatory Commission (Forum for Redressal of Grievances of the Consumers and Ombudsman) Regulations, 2018Regulation 2018
- JERC Notification dated 26.11.2018Notification 2018
- Delhi Electricity Regulatory Commission (Supply Code and Performance Standards) Regulations, 2017Regulation 2017
- The Himachal Pradesh Electricity Regulatory Commission (Consumer Grievances Redressal Forum and Ombudsman) Regulations, 2013Regulation 2013
- JERC Notification dated 31.07.2009Notification 2009
- The Himachal Pradesh Electricity Regulatory Commission (Procedure for filing Appeal before the Appellate Authority) Regulations, 2005Regulation 2005
Questions about Section 126
What have the courts held on Section 126 of the Electricity Act?
Kerala State Electricity Board v. Thomas Joseph (16 Dec 2022) is the leading judgment on this section among those set out below: Electricity 126: overdrawal beyond connected/contracted load is unauthorised use; assessment is twice tariff; 126 is not 135 theft (Thomas Joseph). Do not pad 135/111/178. Another 1 judgment on this section is set out below, all of them from the Supreme Court. They run from 2008 to 2022.
How do I find court cases under Section 126 of the Electricity Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Electricity Act 2003 126, section 126 Electricity Act 2003, section 126 of the Electricity Act. People searching for it also type electricity act 126 135 and indian electricity act 126. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Kerala State Electricity Board v. Thomas Joseph (16 Dec 2022).
What should I read with Section 126 of the Electricity Act, and has it changed?
4 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 3: most recently Amendment in the MP Electricity (service of Provisional Assessment order) Rules 2004 (2013), then Madhya Pradesh Electricity(service of provisional assessment order)Rules 2004 (2004), and 1 more.
When did Section 126 of the Electricity Act come into force?
Section 126 of the Electricity Act, cited as Electricity Act 2003 126, came into force on 10 Jun 2003, having been enacted on 26 May 2003. It is in force as at the date shown on this page.
Other sections of this Act
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.