The provisions of Section 57, 57-A, 70 and Schedule VI of the Electricity (Supply) Act, 1948, override the provisions of the agreement between the licensee and the consumer and that the licensee had the power to revise the rates agreed to between it and the appellant, in accordance with Schedule VI to the 1948 Act.

ISMAIL, J.:- On 7th July 1925, the Government of Madras granted to the Tiruchirapalli-Srirangam Electricity Supply Corporation Ltd., Tiruchirapalli, a licence under Section 3(1) of the Indian Electricity Act 1910 (hereinafter referred to as "the 1910 Act") for supply of electrical energy to the towns of Tiruchirapalli and Srirangam. This licence with its conditions has been marked as Ex.A.94 in these proceedings. The Tiruchirapalli Municipality had its Head Water works and sub-pumping station run on electricity. Under Ex.A.1 dated 31st October 1934, the said Tiruchirapalli-Srirangam Electricity Supply Corporation Ltd., Tlruchirapalli, entered into an agreement with the Tiruchirapalli Municipality for supply of electricity for the purpose of running the Head Water works, sub-water works and other electric power driven installations within the Municipal limits. Clause 10 of this agreement dealt with the charge payable by the Municipality for the electrical energy supplied to it and the said clause is as follows:

"For each calendar month during the term of this agreement, the consumer shall pay to the licencee a charge calculated at the rate of ten pies per unit (kwh) for all energy consumed and registered through each meter, other than the meter for lights and fans, fitted at either the Head Water works or sub water works, vide schedule "A" and at the rate of one anna six pies per unit (kwh) for all energy consumed by any motor and registered through each meter other than the meter for lights and fans mentioned in schedule "B" Clause 15 of this agreement dealt with the duration of the agreement and it provided:

"This agreement shall, subject as herein before provided be and remain in force for a period of seven years from the date hereof. Either party shall be at liberty to determine this agreement after the expiration of such seven years on giving to the other two years notice in writing of such intention and (on the expiration of such notice), this agreement shall absolutely cease to be in effect and determine, but without prejudice to the rights or remedies, if any of either party, which may have accrued or arisen hereunder in the meantime".

During the currency of this agreement, on 25th March 1939, the company wrote to the Municipality suggesting a new schedule of rates and also contemplating the renewal of the agreement. This communication marked as Ex.A.2 pointed out:-

"Though the power agreement for the water works supply expires only in 1941, we agree with you that it may be renewed now as some of its clauses are out of date and relate to thermal generation of power by us. Rates for these, when in order that they may compare favourably with the rates you incurred on your own plant then in operation. Still we shall be glad to charge at the enclosed rates with effect from 1st March 1939 and in this connection, we are shortly sending you a revised draft agreement for your acceptance. The rates now proposed benefit you to the tune of Rs.9,000/- per annum, which we have no doubt, you will agree, is not inconsiderable. We enclose a tabulated sheet explaining how the sum of Rs.9,000/- is arrived at". The proposed rates were enclosed and they were:-

First 1000 units per month - 1.25 annas per unit Next 4000 units per month - 0.80 anna per unit; and all in excess per month - 0.60 anna per unit Minimum monthly charge. Rs. 100/-

2. By its resolution dated 24-6-39, the Municipal Council agreed to the rates proposed by the company for supply of power to main pumping station, sub-pumping station and other electrical installations within the Municipal limits. Even after the expiration of the period of seven years from the date of the agreement. Ex.A.1, neither party gave notice of termination and no revised agreement was actually entered into in writing as contemplated in Ex.A.2. It is the common case of the parties that the original agreement continued to subsist with the revised rates as agreed to between the parties as referred t