THE SPECIAL OFFICER (REVENUE) KERALA STATE ELECTRICITY BOARD AND ANR. ETC. ETC. versus M.R.F. LIMITED ETC. ETC.

THE SPECIAL OFFICER (REVENUE) KERALA STATE ELECTRICITY BOARD AND ANR. ETC. ETC. versus M.R.F. LIMITED ETC. ETC.

The Kerala State Electricity Board is entitled to claim interest at 18% per annum on unpaid bills calculated on the basis of revised tariffs, as restitution demands restoration to the position had the erroneous High Court decision not been passed; enforceability revives from the date of revision, and the respondent, having agreed contractually to pay interest, is liable for such interest.

Parties
Appellant: Kerala State Electricity Board; Respondent: MRF Limited
Jurisdiction
India
Judgment Date
12 December 1995
Procedural Posture
Civil Appeal / Final Decision by Supreme Court
Outcome
Appeals allowed, High Court judgments set aside.
Legal Topics
Restitution, Interest on Unpaid Bills, Validity of Tariff Revision
Electricity Law Contract Law Administrative Law Restitution Interest on Unpaid Bills Validity of Tariff Revision

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Parties

Kerala State Electricity Board

Appellant

MRF Limited

Respondent

Procedural Posture

Civil Appeal / Final Decision by Supreme Court

Legal Issues

  1. 1 Whether Kerala State Electricity Board may claim interest on unpaid electricity bills calculated on revised tariffs during period when High Court judgment struck down revision.
  2. 2 Whether restitution principle requires payment of interest by MRF Limited after Supreme Court upheld tariff revision.

Ratio Decidendi

The Kerala State Electricity Board is entitled to claim interest at 18% per annum on unpaid bills calculated on the basis of revised tariffs, as restitution demands restoration to the position had the erroneous High Court decision not been passed; enforceability revives from the date of revision, and the respondent, having agreed contractually to pay interest, is liable for such interest.

Court Disposition

Appeals allowed, High Court judgments set aside.

Orders

  • Board entitled to claim interest at 18% per annum on unpaid portion of bills based on revised tariffs.
  • No order as to costs.