K.RAMASWAMY, K.JAYACHANDRA REDDY
C. E. S. C. LTD. – Appellant
Versus
Bowreah Cotton Mills Company LTD. , Howrah – Respondent
(1) SPECIAL leave granted.
(2) WE have heard the learned counsel on either side. This appeal arises against the judgment of the division bench of the Calcutta High Court dated 21/05/1991 granting interim direction pending the matter arising under Article 226 of the Constitution. The appellant admittedly supplies electric energy to the respondent-mill and in terms of the contract the appellant, as contended by its learned counsel had to supply the electric energy and the respondent had to pay the consumption charges as well as surcharge on delay in payment thereof plus additional security deposit on average of three months consumption of electricity as per Section 24 of the Indian Electricity Act, 1910. It is the case of the appel lants that the respondent-mill had undertaken in July 1990 to make the payment of the arrears at the rate of Rs. 10 lakhs per month in addition to regular consumption charges till all the arrears were liquidated and had also undertaken to furnish the additional security and to pay sur- charge on the delayed payments but the respondent-mill committed default. The appellants, therefore, issued notice of disconnection and challenging the validi
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