BIHAR STATE ELECTRICITY BOARD AND ANR. versus USHA MARTIN INDUSTRIES AND ANR.

BIHAR STATE ELECTRICITY BOARD AND ANR. versus USHA MARTIN INDUSTRIES AND ANR.

Fixation of electricity tariff is a statutory power and policy matter; absence of a contractual provision for tariff reduction upon excise duty abolition means no obligation exists for Board to reduce uniform tariff. Section 64-A of Sale of Goods Act is inapplicable due to clear contrary intention in the contract and statutory authority. Courts cannot direct tariff reduction as Board is mandated to ensure revenue and avoid losses under the Electricity (Supply) Act.

Parties
Appellant: Bihar State Electricity Board; Respondent: Usha Martin Industries; Advocate: Padam Khaitan; Advocate: Suman Khaitan; Advocate: P.N. Misra; Advocate: Pramod Swarup; Advocate: Binu Tamta
Jurisdiction
India
Judgment Date
08 May 1997
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal allowed; High Court order set aside.
Legal Topics
Tariff Fixation, Judicial Review, Statutory Interpretation, Excise Duty, Contractual Terms
Electricity Law Administrative Law Constitutional Law Tariff Fixation Judicial Review Statutory Interpretation Excise Duty Contractual Terms

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 4 Authorities cited 8 Party arguments 2 Amounts and remedies 15
Sign in to unlock

Parties

Bihar State Electricity Board

Appellant

Usha Martin Industries

Respondent

Padam Khaitan

Advocate

Suman Khaitan

Advocate

P.N. Misra

Advocate

Pramod Swarup

Advocate

Binu Tamta

Advocate

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether Bihar State Electricity Board was obliged to reduce uniform tariff upon abolition of central excise duty on electricity
  2. 2 Applicability of Section 64-A of Sale of Goods Act in tariff reduction
  3. 3 Jurisdiction of High Court to direct tariff reduction

Ratio Decidendi

Fixation of electricity tariff is a statutory power and policy matter; absence of a contractual provision for tariff reduction upon excise duty abolition means no obligation exists for Board to reduce uniform tariff. Section 64-A of Sale of Goods Act is inapplicable due to clear contrary intention in the contract and statutory authority. Courts cannot direct tariff reduction as Board is mandated to ensure revenue and avoid losses under the Electricity (Supply) Act.

Court Disposition

Appeal allowed; High Court order set aside.

Orders

  • Impugned judgment of Patna High Court is set aside.
  • No order as to costs.