P&H HC quashes PSPCL recovery notices to 14 Mohali industrial units
Demands for past arrears were raised without giving the units a hearing; PSPCL left free to proceed afresh after one.
Published
00Background
PSPCL issued notices in June 2026 demanding arrears for 2019–2021, attributing them to a multiplying-factor error in the meters. The units were told to pay within 15 days or face disconnection.
01Submissions
For the petitioner-units
The arrears were never shown in any bill and are time-barred under S. 56(2). In any event the notices were issued without disclosing the meter data or hearing the consumers.
For PSPCL
A demand that corrects a billing mistake is not a fresh claim of arrears. The units can file objections before the dispute settlement committee.
02Observations
The Bench did not decide whether the demands were time-barred. It found that the notices gave no calculation and no opportunity to object before the threat of disconnection.
“A consumer cannot be asked to pay first and understand the demand later. The notices fail at the threshold for want of a hearing.”
Order, ¶ 14 · open at p. 9
03Findings & directions
- Recovery notices dated June 2026 to the 14 petitioner-units quashed.
- PSPCL may issue fresh notices with the meter data and calculation, after hearing the units.
- All contentions, including limitation under S. 56(2), left open.
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