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1982 Supreme(Bom) 223

S.P.BHARUCHA
Mukund Iron and Steel Works Ltd – Appellant
Versus
Maharashtra State Electricity Board – Respondent


JUDGMENT - Bharucha S.P., J.-The effect of a power cut upon the minimum demand charge payable by a consumer of electricity to the supplier thereof has to be determined in this writ petition.

2. The petitioners Mukand Iron and Steel Works Ltd., are manufacturers of iron and steel products. They have a plant at Kalwe, Thane. They are large consumers of electricity supplied to them by the 1st respondent the Maharashtra*State Electricity Board. On 3rd August 1965 the Board entered into an agreement with the company. Clause 3 of the agreement states that the Board shall supply to the company and the company shall take from the Board all the electrical energy required at its plant at Kalwe upto a maximum of 15,000 K. V. A. (kilo volt amperes), which quantum is referred to as the “contract demand”. Under clause 7 (a) the company is entitled to apply to the Board for supply in excess of the contract demand and the Board is obliged to make it available within the stated period provided it has the additional energy available and it is economical to do so. Under clause 7(c), if additional supply is made available, the contract demand specified in clause 3 is increased to that extent. (It must





























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