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The Consumers are liable to pay Corrected Bills despite Procedural Errors by the Utility Company --- The Procedural Errors in Billing should not Exonerate Consumers from paying their Actual Dues --- Lahore High Court, Lahore

2 months, 2 weeks
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Islamabad 13-01-2025: In a significant judgment, the Lahore High Court has set aside an appellate Court decision in a gas billing dispute involving Sui Northern Gas Pipelines Limited (SNGPL) and remanded the matter for fresh adjudication. The Court ruled that the appellate Court failed to fulfill its duty of properly evaluating evidence and addressing material legal questions, as required by law.

The Petitioner, SNGPL, initiated a lawsuit against the legal heirs of Fazal Hussain (deceased), alleging a short payment of Rs. 4,15,986 due to errors in billing caused by a meter-reader’s miscalculation. The Petitioner claimed that the Gas Sales Contract required the consumer to pay corrected bills upon the discovery of such errors.

The Respondents, however, denied liability, asserting that they had fully paid all dues and could not be held accountable for errors committed by the Petitioner’s staff.

Lower Court Decisions:

The Civil Judge dismissed the suit on January 27, 2012, ruling that the Respondents could not be held liable for billing errors caused by the meter-reader.
The Additional District Judge upheld the dismissal on October 31, 2013, stating that no proper inquiry had been conducted and no show-cause notice had been issued to the Respondents.

Mr. Justice Rasaal Hasan Syed, in his judgment, criticized the lower Courts for ignoring crucial evidence and failing to apply the law properly. Key observations included:

Both the trial and appellate Courts disregarded substantial oral and documentary evidence, including the Gas Sales Contract (Ex.P-5), which explicitly bound the consumer to pay corrected bills for under-billing.
The appellate Court failed to comply with Rule 31, Order XLI of the Civil Procedure Code, which mandates appellate judgments to include points for determination, decisions on those points, and reasons for the decisions.
The Lahore High Court emphasized that under Clause 15(ii) of the Gas Sales Contract, consumers are obligated to pay corrected bills, irrespective of procedural lapses or errors by the utility company’s staff.

Key Legal Principles Highlighted:

Appellate Courts must independently evaluate evidence and address all material legal questions.
Procedural faults by a utility company, such as errors by its staff, do not absolve consumers of liability if contractual terms bind them.
Judgments lacking proper reasoning and evidence analysis are legally defective and subject to revision.

The Lahore High Court set aside the judgment of the appellate Court and remanded the case for fresh adjudication. The appellate Court was directed to re-evaluate the evidence, consider the material questions of law, and decide the matter in compliance with Rule 31, Order XLI of the Civil Procedure Code.

Mr. Justice Rasaal Hasan Syed noted that procedural errors in billing should not exonerate consumers from paying their actual dues and that the liability must be regulated by the terms of the contract.

This ruling reinforces the obligation of Appellate Courts to fully analyze evidence and legal issues in their judgments. It also underscores the importance of contractual obligations in utility disputes and the Lahore High Court supervisory role in Ensuring Justice.