NADIAD ELECTRIC CO. LTD. versus NADIAD BOROUGH MUNICIPALITY & ANR.

NADIAD ELECTRIC CO. LTD. versus NADIAD BOROUGH MUNICIPALITY & ANR.

The benefit of continued supply on the same terms and conditions after expiry of an agreement under section 22-A(3) of the Indian Electricity Act, 1910 is available only to establishments duly notified by the State Government under section 22-A(1). In the absence of such notification, the municipality cannot claim this statutory privilege; the courts do not have the authority to declare an establishment eligible in the absence of notification.

Parties
Appellant: Nadiad Electric Co. Ltd.; Respondent No. 1: Nadiad Borough Municipality; Respondent No. 2: Gujarat State Electricity Board
Jurisdiction
India
Judgment Date
12 December 1979
Procedural Posture
Civil Appeal / Supreme Court Appeal by Certificate Under Article 133(1)(c) of the Constitution After Letters Patent Appeal Decision
Outcome
Appeal allowed
Legal Topics
Extension of Supply Agreements, Statutory Interpretation, Public Utility Obligations
Electricity Law Contract Law Administrative Law Extension of Supply Agreements Statutory Interpretation Public Utility Obligations

Case Brief

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Parties

Nadiad Electric Co. Ltd.

Appellant

Nadiad Borough Municipality

Respondent No. 1

Gujarat State Electricity Board

Respondent No. 2

Procedural Posture

Civil Appeal / Supreme Court Appeal by Certificate Under Article 133(1)(c) of the Constitution After Letters Patent Appeal Decision

Legal Issues

  1. 1 Whether municipality is entitled to continued supply of electrical energy on same terms after agreement expiry under s. 22-A(3) of the Indian Electricity Act, 1910, without State Government notification under s. 22-A(1).

Ratio Decidendi

The benefit of continued supply on the same terms and conditions after expiry of an agreement under section 22-A(3) of the Indian Electricity Act, 1910 is available only to establishments duly notified by the State Government under section 22-A(1). In the absence of such notification, the municipality cannot claim this statutory privilege; the courts do not have the authority to declare an establishment eligible in the absence of notification.

Court Disposition

Appeal allowed

Orders

  • Judgment and decree of the High Court set aside; decree of the trial court (dismissing the suit) restored.
  • Parties to bear their own costs throughout.