BIHAR STATE ELECTRICITY BOARD AND ORS. versus M/S. ALLIED REFRACTORIES (PVT.) LTD. AND ORS.

BIHAR STATE ELECTRICITY BOARD AND ORS. versus M/S. ALLIED REFRACTORIES (PVT.) LTD. AND ORS.

Respondents cannot be granted proportionate reduction for minimum guarantee charges without first making a formal application as stipulated in the contract and Section 49 of the Electricity Supply Act. High Court orders granting such reduction directly are not justified.

Parties
Appellant: Bihar State Electricity Board; Respondent: M/s. Allied Refractories (Pvt.) Ltd.; Respondent: Respondent 2; Respondent: Respondent 3; Respondent: Respondent 4; Respondent: Respondent 5; Respondent: Respondent 6
Jurisdiction
India
Judgment Date
25 January 1996
Procedural Posture
Civil Appeal / Appeal From Patna High Court Judgment in C.w.j.c. No. 1480 of 1988
Outcome
Appeal allowed
Legal Topics
Minimum Guarantee Charges, Contractual Obligations Under Electricity Supply Act, Proportionate Reduction for Non Supply
Electricity Law Minimum Guarantee Charges Contractual Obligations Under Electricity Supply Act Proportionate Reduction for Non Supply

Case Brief

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Parties

Bihar State Electricity Board

Appellant

M/s. Allied Refractories (Pvt.) Ltd.

Respondent

Respondent 2

Respondent

Respondent 3

Respondent

Respondent 4

Respondent

Respondent 5

Respondent

Respondent 6

Respondent

Procedural Posture

Civil Appeal / Appeal From Patna High Court Judgment in C.w.j.c. No. 1480 of 1988

Legal Issues

  1. 1 Whether respondents are entitled to a proportionate reduction of minimum guaranteed charges for electricity due to disruptions such as trippings, load sheddings, and power cuts without making an application as per the contract

Ratio Decidendi

Respondents cannot be granted proportionate reduction for minimum guarantee charges without first making a formal application as stipulated in the contract and Section 49 of the Electricity Supply Act. High Court orders granting such reduction directly are not justified.

Court Disposition

Appeal allowed

Orders

  • High Court order dated August 16, 1988 in C.W.J.C. No. 1480 of 1988 set aside
  • Respondents may apply for reduction under Section 49 of the Electricity Supply Act; Board to consider and pass orders within a reasonable time