( 1 ) THE petitioners herein have challenged the action of respondents in adjusting the amounts of the bills of the petitioners for the electricity sold by it to the respondent Gujarat Electricity Board without the consent of the petitioner no. 1 and also prayed for consequential reliefs.

( 2 ) THE short facts of the case are as under: (1) The petitioner company is engaged in the business of manufacturing diverse types of chemicals and for that purpose it has a manufacturing plant and office at Bharuch. The petitioner company had entered into an agreement in December 1995 with the respondent Board for supplying electricity power. The contracted demand was thereafter extended to 25000 KVA and the said agreement stipulated that the period of supply under the Agreement shall be minimum period of two years. This agreement was between a licencee and a consumer as defined under the Indian Electricity Act, 1910 (hereinafter referred to as the said Act ). (2) In view of the power crisis in the State, the State Government has come out with power policy in the year 1995 permitting captive power generation. The said policy decision of the State Government stipulated encouragement of establishment of captive power plants by the industries in order to augment the energy generation and it was also stipulated therein that the Board would consider purchase of surplus power from such captive power plants on mutually agreed terms. (3) The Electricity (Supply) Act, 1948 casts a responsibility on Gujarat Electricity Board (GEB) to coordinate electricity generation and its distribution in the whole State. Previous permission of GEB is necessary under the provisions of the said Act, if anybody wants to generate power for self consumption (captive generation ). Any industrial unit intending to set up captive power plant would be given consent by GEB under Section 44 (1) of the said Act to set up captive power plant and further would be permitted to supply electric power to its subsidiary/parent company from the captive power plant of parent/subsidiary company and the sanction of the State Govt. required under section 28 of Indian Electricity Act, 1910 would be granted for such purpose. The petitioner decided to set up a captive power plant as envisaged in the power policy of the State Government. The respondent Board accorded its consent as required under section 44 of the Electricity (Supply) Act, 1948 by letter dated 20. 5. 1996 to establish captive power plant with a capacity of 41 MW. Accordingly the petitioner commissioned the captive generation plant in the year 1997 and subsequently the respondent Board accorded its consent for enhancing the capacity by 7. 5 MW with co-generation system making the total generating capacity of 48. 5 MW by its letter dated 23. 3. 1999. It is to be noted that this agreement was also entered between the same parties in different capacities for different purpose wherein petitioner is supplier and respondent Board is in place of consumer. (4) Upon commissioning of the captive generation plant of 41 MW in March 1997, the petitioner company addressed a letter dated 25. 6. 1997 requesting the Board to reduce its demand from 25000 KVA to 3000 KVA in view of the fact that upon commissioning of the captive plant, as approved by the Board vide its letter dated 20. 5. 1996, the requirement/demand of the petitioner company for power from the Board had considerably reduced and there was no purpose in continuing the earlier position regarding demand which was imposing financial burden on the company. (5) Resolution dated 22nd December 1997 stipulates the guidelines for Captive Power Projects. It sets out the terms and conditions for setting up of captive power plant and supply of electric power. Copy of the Resolution is produced at Annexure-D to the petition (page 58 ). (6) The respondent Board vide its communication dated 15. 7. 1997 informed the petitioner company that the petitioners contract for demand w