VidhiSangh

Supreme Court of India · 30/04/2021

STATE ELECTRICITY BOARD AND OTHERS versus M/S RAMKRISHNA FORGING LIMITED

[2021] 4 S.C.R. 454 · 2021 INSC 278

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Summary

Enhancement of sanctioned electricity load for the same continuing connection did not restart the initial three-year agreement period governing reduction of load. Later enhancement agreements were supplementary modifications of the original agreement. The Board wrongly treated the consumer’s reduction request as termination of supply. The request was deemed allowed with consequential benefits, without deciding the High Court’s finding that the regulatory restriction itself was arbitrary.

Issues

  1. Whether enhancement agreements restarted the initial period barring reduction of sanctioned load.
  2. Whether a reduction request could be rejected under the contractual clause governing termination.

Provisions considered

Held

Result

Board’s appeal dismissed without costs; the consumer’s application dated 20 September 2007 deemed allowed, with all consequential benefits.

Judgment PDF: Supreme Court of India, [2021] 4 S.C.R. 454.