Heard counsel for the petitioner and Standing Counsel for KSEB. The petitioner is challenging Ext.P4 bill and Ext.P6 instalment scheme for payment of the same. The petitioner is billed for short-assessment on account of application of wrong multiplication factor in the original invoices. Therefore, demand for the actual consumption by applying correct multiplication factor cannot be challenged. However, I find KSEB has charged penal charges of Rs.11,254/- along with short-assessment which obviously cannot be demanded from the petitioner as the fault is of the KSEB as well in their failure to apply the correct multiplication factor while original bills were raised. So far as petitioner's challenge against demand of surcharge is concerned, it is not tenable because surcharge is demanded only because of instalment facility claimed by the petitioner and granted by KSEB. Surcharge is statutory interest which petitioner is bound to pay. In the circumstances, W.P. is partly allowed quashing the demand of penal charges of Rs.11,254/- with direction to respondents 3 and 4 to exclude the same from Ext.P6 instalment facility and proportionately