JUDGMENT

B. P. JEEVAN REDDY, J :—Leave granted, Heard counsel for the parties.

The Orissa State Electricity Board is questioning in this appeal the correctness of the judgment of the Orissa High Court declaring the proviso to Regulation 46 of the Orissa State Electricity Board (General Conditions of Supply) Regulations 1981, (hereinafter referred to as "Regulations") as unreasonable, arbitrary and illegal. Having struck down the proviso - i.e., the proviso as substituted by Notification dated June 25, 1987 - the High Court has directed the Board to revise the bills issued to the respondent - writ petitioner "on the basis of proportionate reduction taking into account the actual consumption of energy."

2. The respondent-writ petitioner (M/s. IPI Steel Limited) has a mini steel plant in Orissa. On August 16, 1984, it had entered into an agreement with the appellant-Board whereunder the Board undertook to supply "up to but not exceeding a maximum demand of 7778 KVA/7000 KW". The agreement contains the following stipulations among others :

(1) "The consumer has perused a copy of the Orissa State Electricity Board (General Conditions of Supply) Regulations, 1981, understood its contents an