Disconnection of supply in default of payment
Section 56 of the Electricity Act, 2003 deals with disconnection of supply in default of payment. 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 givi The Act came into force on 10 Jun 2003.
(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.
Section 56, 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.
Referred to by 1
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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Prem Cottex v. Uttar Haryana Bijli Vitran Nigam Ltd.
Court's Decision & Legal Precedent
Labelled Judgement order-8.pdf 2021-10-05 DATE-CHECK VERIFY (body recites 2006-08-03 load extension and 2009-09-11/22 short-assessment notice/representation as fact dates; document ends NEW DELHI OCTOBER 05, 2021). Hemant Gupta + V. Ramasubramanian. CA 7235/2009. REPORTABLE. Isolate: Electricity Act s.56(2) bars both recovery and disconnection after two years from when the sum became first due; short-billing from the licensee's own multiplying-factor mistake is not the consumer's 'neglect to pay' under s.56(1), so the s.56(2) bar does not apply; Rahamatullah Khan is distinguished. Ajmer Vidyut labelled Judgement is a pronouncement ROP — do not attach it. Map 56 only.
On this section: Electricity Act s.56(2) bars both recovery and disconnection after two years from first due, but a licensee's bona fide short-billing multiplying-factor mistake is not the consumer's neglect to pay under s.56(1), so the bar does not apply to that supplementary demand (Prem Cottex; Rahamatullah Khan distinguished).
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Uttar Haryana Bijli Vitran Nigam Ltd. v. Sat Narain Dhanwantri
Court's Decision & Legal Precedent
Final Order order-1.pdf 2023-03-22 DATE VERIFIED. Vinod S. Bhardwaj J. CWP 20743/2020. Isolate: Electricity Act s.56(2) — a distribution licensee may raise additional/supplementary demand after two years where bills used the wrong multiplying factor by bona fide mistake; Permanent Lok Adalat award limiting recovery to two years is set aside on Rahamatullah Khan. Map 56 only.
On this section: Electricity Act s.56(2) does not stop a licensee from raising a supplementary demand after two years for a bona fide multiplying-factor mistake; a Permanent Lok Adalat award limiting recovery to two years is set aside (UHBVN / Sat Narain, applying Rahamatullah Khan).
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Kamla Engg. vs Punjab National Bank
Court's Decision & Legal Precedent
The dues of a secured creditor have priority over and shall be paid in priority to all other debts and government dues including Central Excise dues. An auction purchaser who purchases a mortgaged property from a secured creditor in an auction conducted under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 is not liable to pay the dues of the erstwhile owner/borrower/assessee that are claimed by the Central Excise Department or other government agencies, provided such dues do not arise from the utilization of the property itself and no charge has been created and notice given to the purchaser. The secured creditor's right of priority is established through Section 31B of Recovery Act 1993, Section 26E of Securitisation Act 2002, and Section 11E of Central Excise Act 1944, all of which have retroactive application to live and existing debts. A charge on immoveable property can only be enforced against a transferee if: (1) a charge has been validly created, and (2) the transferee had notice of such charge. In the absence of either element, the charge cannot be enforced against the transferee.
On this section: Court discussed that electricity dues are statutory in nature and auction purchaser may be liable for such dues as they arise from utilization of property itself.
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.
Made under this section, and citing it
6 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.
- Amendements in cash flow MechanismRule 2012
- MADHYA PRADESH ELECTRICITY REFORMS FIRST TRANSFER SCHEME RULES 2003- AMENDMENTSRule 2012
- MADHYA PRADESH ELECTRICITY REFORMS FIRST TRANSFER SCHEME RULES 2003- AMENDMENTSRule 2012
- Modification in Madhya Pradesh Electricity Reform First Transfer Scheme Rule 2003Rule 2012
- MADHYA PRADESH ELECTRICITY REFORMS FIRST TRANSFER SCHEME RULES 2003- AMENDMENTSRule 2005
- MADHYA PRADESH ELECTRICITY REFORMS FIRST TRANSFER SCHEME RULES 2003Rule 2003
Another 3 instruments name this provision in its title or its text without being made under it.
Questions about Section 56
What have the courts held on Section 56 of the Electricity Act?
Prem Cottex v. Uttar Haryana Bijli Vitran Nigam Ltd. (05 Oct 2021) is the leading judgment on this section among those set out below: Electricity Act s.56(2) bars both recovery and disconnection after two years from first due, but a licensee's bona fide short-billing multiplying-factor mistake is not the consumer's neglect to pay under s.56(1), so the bar does not apply to that supplementary demand (Prem Cottex; Rahamatullah Khan distinguished). Another 2 judgments on this section are set out below, 1 of them from the Supreme Court. They run from 2020 to 2023.
How do I find court cases under Section 56 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 56, section 56 Electricity Act 2003, section 56 of the Electricity Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 3 reported judgments on this section are set out on this page, beginning with Prem Cottex v. Uttar Haryana Bijli Vitran Nigam Ltd. (05 Oct 2021).
What should I read with Section 56 of the Electricity Act, and has it changed?
1 other provision in this corpus refers back to it. The rules and notifications made under it are where it actually bites, and there are 6: most recently Amendements in cash flow Mechanism (2012), then MADHYA PRADESH ELECTRICITY REFORMS FIRST TRANSFER SCHEME RULES 2003- AMENDMENTS (2012), and 4 more.
When did Section 56 of the Electricity Act come into force?
Section 56 of the Electricity Act, cited as Electricity Act 2003 56, 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.