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Jharkhand State Electricity Board and Others v. M/s Laxmi Business & Cement Co. Pvt. Ltd. and Another

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 2909 of 2014)Decided 28 Feb 2014
Civil Appeal No. 2909 of 2014
Justice K.S. Radhakrishnan · Justice A.K. Sikri

Background

Industrial consumers challenged electricity bills calculated using an older agreement requiring charges on at least seventy-five per cent of contracted demand. The state regulator had introduced a new tariff from January 2004. The electricity board nevertheless continued the old method, and the consumers paid under protest to avoid disconnection.

Decision Breakdown

The Court dismissed the board's appeals and upheld the consumers' relief, including refund of excess charges. Tariff determination belonged to the regulator, and the board could not charge a different tariff through an earlier contract. The regulator had considered the relevant demand charges, so the board could not treat the old formula as an omitted matter preserved by the new schedule. Even a saved agreement yielded to the later statutory tariff. The consumers' ongoing protests and the board's clarification proceedings explained the delay in approaching court.

Lesson Learnt

An electricity supplier must follow the regulator's applicable tariff even when an older supply contract contains another charging formula. Paying disputed bills under protest can help explain a later challenge.

Official source (sci.gov.in)View Judgment (PDF)

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