JAGADAMBA PAPER INDHSTRIES (PVT.) LTD. ETC. ETC. versus HARYANA STATE ELECTRICITY BOARD & ORS. ETC.

JAGADAMBA PAPER INDHSTRIES (PVT.) LTD. ETC. ETC. versus HARYANA STATE ELECTRICITY BOARD & ORS. ETC.

The Board is conferred statutory authority under Section 49(1) of the Electricity (Supply) Act, 1948 and the contract terms to revise and demand enhanced security deposits, provided such power is not exercised arbitrarily or unreasonably. The two-month energy bill or slightly more is not unreasonable as security.

Parties
Petitioner: Jagdamba Paper Industries (Pvt.) Ltd. etc. etc.; Respondent: Haryana State Electricity Board & Ors. etc.
Jurisdiction
India
Judgment Date
29 September 1983
Procedural Posture
Writ Petition and Civil Appeal / Final Judgment
Outcome
Petitions dismissed
Legal Topics
Security Deposit for Electricity Bills, Unilateral Revision of Supply Terms, Interest Rate on Security Deposits
Electricity Law Contract Law Constitutional Law Security Deposit for Electricity Bills Unilateral Revision of Supply Terms Interest Rate on Security Deposits

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 3 Authorities cited 10 Party arguments 2 Amounts and remedies 8
Sign in to unlock

Parties

Jagdamba Paper Industries (Pvt.) Ltd. etc. etc.

Petitioner

Haryana State Electricity Board & Ors. etc.

Respondent

Procedural Posture

Writ Petition and Civil Appeal / Final Judgment

Legal Issues

  1. 1 Whether the Board can unilaterally increase the security deposit under Indian Electricity (Supply) Act, 1948
  2. 2 Whether demand for enhanced security is justified for energy bills and meters
  3. 3 Whether revision of security deposits amounts to arbitrary exercise of power

Ratio Decidendi

The Board is conferred statutory authority under Section 49(1) of the Electricity (Supply) Act, 1948 and the contract terms to revise and demand enhanced security deposits, provided such power is not exercised arbitrarily or unreasonably. The two-month energy bill or slightly more is not unreasonable as security.

Court Disposition

Petitions dismissed

Orders

  • Interest rate on security deposit to be enhanced to 10% per annum from October 1, 1983.
  • Escalated meter security demand to be reduced by 50%, fixed at Rs.2500 minimum and Rs.5000 maximum for industrial meters; new formula to be introduced from October 1, 1983.