Electricity Act| Fine For First Conviction U/s. 135 Must Be Minimum Three Times Financial Gain From Theft: Karnataka HC

The Karnataka High Court ruled that, in cases of theft of electricity where the load used is less than 10 kilowatts, the penalty for the first conviction of theft under section 135 of the Electricity Act, 2003 (Act) must be three times the financial gain acquired. Therefore, the Court modified and enhanced the fine of the accused to Rs. 1,08,189.  

The Bench of Justice Shivashankar Amarannavar observed, “The minimum sentence for the theft of electricity under Section 135 of the Act for the first conviction is, if the load used is less than 10 kilowatt, shall not be less than three times the financial gain. The financial gain by this respondent – accused by the said offence of theft of electricity is Rs.36,063/-. Therefore, the minimum fine is three times the said amount of Rs.36,063/- which comes to Rs.1,08,189/-”.

Government Pleader Renukaradhya R D appeared for the Appellant/ State and Advocate Lingaraj appeared for the Respondent/Accused.

In this case, an appeal was filed by the State seeking to modify and enhance the sentence passed by the Special Court, wherein the Court had convicted the Respondent under Sections 135 and 138 of the Act and imposed a fine of Rs. 10,000 along with the direction to pay the black-billed amount of Rs. 36, 063. The State contended that the minimum sentence for an offence under Section 135 of the Act could not be less than three times the financial gain on account of theft of electricity in the event of first conviction.

The Court observed that the amount of financial gain from the theft of electricity by the Respondent has to be ascertained. The Court noted that the back billing amount was calculated as Rs. 36,063 based on the average consumption and meter readings of the accused.

“Therefore, the back billing amount is a financial gain by the respondent – accused by commission of theft of electricity. Therefore, the financial gain by the respondent – accused is of Rs.36,063/-. Even, the Special Court, based on the evidence on record has held that the back billing amount is Rs.36,063/- and it is required to be paid by the respondent – accused to the MESCOM”, the Court noted.

The Court asserted that since the financial gain by the Respondent was Rs. 36,063, then the minimum fine would be Rs. 1,08,189.

Accordingly, the Court allowed the appeal, modified and enhanced the fine, and directed the Respondent to deposit the amount within six months from the date of the judgment.

Cause Title: State By PI Mescon v. B Usman Beary (2023:KHC:27419)

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