( 1 ) TWO questions arise in this batch of writ petitions filed by Grindwell Norton Ltd. , Tirupati, a Public Limited Company, having its factory at Karkambadi village of Chandragiri Taluk, in Chittoor District. They are :i) what are the minimum charges payable by the petitioner under the agreement entered into by it with the respondent-Electricity Board? andii) whether the petitioner is relieved of the obligation to pay the minimum charges on account of the interruptions in, and irregular voltage of the power supplied?these questions have to be answered with reference to the terms and conditions of the agreement entered into between the petitioner and the Electricity Board, and the relevant terms and conditions of supply which, indeed, constitute terms of agreement between the parties.

( 2 ) I. Factual Matrix : on 1-10-1977 the petitioner applied to the Electricity Board requesting it to confirm that the Board will be able to meet the petitioner s power requirements, and to issue a letter in that behalf so as to enable the petitioner to apply for the letter of intent. The petitioner stated in its application that it is having plants in Bombay and Bangalore manufacturing bonded Abrasives and silicon Carbide , and that it wishes to set up an additional unit to manufacture 5,000 tonnes per year Silicon Carbide in Andhra Pradesh for an export oriented project. It was submitted that the petitioner requires continuous and uninterrupted supply of power, and that its power requirements will be 2950 KVA in the first phase, and 5,600 KVA in the second phase. It stated that it preferred supply voltage at 66 KV, or alternatively at 11 KV. It was stated that the petitioner is a power consuming industry, requiring continuous and uninterrupted supply of power for three shifts for the proper growth of Silicon Carbide-Crystals. For that reason, it requested for a concessional power tariff.

( 3 ) ON 14/15 October, 1977 the Secretary to the Board replied to the petitioner assuring the supply of power for setting up a Silicon Carbide plant in Andhra Pradesh. It was, however, stated that it is not possible to supply power at 11 KV voltage.

( 4 ) THERE was further correspondence between the parties, and in reply to the petitioner s letter dated 11-9-1979, the Board sent a letter dated 10-10-1979 conveying the Board s approval for the supply arrangements with the following phased maximum demand, namely : first 21/2 months :- 5,600 KVA next 7 months :- 10,500 KVA and thereafter, 12,500 KVA. Meanwhile, the petitioner had selected the site and put up the plant.

( 5 ) AN agreement was entered into on 24-11-1979 in the form prescribed for High Tension consumers. The form of agreement is provided in Appendix-III to the terms and conditions of supply notified by the Board under Section 49 of the Electricity (Supply) Act, 1948. It is necessary to notice the terms of the said agreement. The agreement is signed by the consumer alone; the Board merely accepts and approves it. Clause 2 says : "i/we the abovementioned have requested the Board to supply electricity at High Tension for thepurpose of manufacturing Silicon Carbide and the Andhra Pradesh State Electricity Board has agreed to afford such supply on the terms and conditions notified by them from time to time under Section 49 of the Electricity (Supply) Act. 1948, and those hereinafter mentioned". Under clause 3 the petitioner undertook "to take" electric power for a maximum load not exceeding the approved graded demand, as mentioned therein. The contracted demand mentioned in the clause is 5,600 KVA for the first 21/2 months, commencing on 24-11-1979 10,500 KVA for the next 7 months; and 12,500 KVA thereafter. Under clause 4 the petitioner undertook nut to sell energy obtained from the Board, to any other person. Under clause 5, the petitioner undertook "to comply with all the requirements of the Indian Electricity Act, 1910; the Electricity (Supply) Act, 1948; the Rules thereunder