Supreme Court allows High Courts to restore power supply in theft cases on a fifty per cent deposit

26 October 2026

In Dakshin Gujarat Vij Company Limited versus Vaibhav Metal Crusher, a Supreme Court bench of Justices Manoj Misra and K.V. Viswanathan has held that a High Court may, in an appropriate case, order restoration of an electricity connection disconnected in a theft case if the consumer deposits at least fifty per cent of the provisionally assessed amount. The Court said this can be done only where the provisional assessment appears prima facie arbitrary and the court records its reasons. It held that the amount for restoration is to be worked out using the procedure in Section 126 of the Electricity Act, 2003 unless the Supply Code prescribes another method, and that an appeal against that assessment lies under Section 127. The Court added that such an appellate determination is final only for the purpose of restoration and does not bind the Special Court deciding civil liability under Section 154, and that any excess deposit must be refunded. The appeal by the distribution companies was dismissed.