1972 Supreme(Mad) 44
M.M.ISMAIL, K.S.PALANISWAMY
The Municipal Council, Tiruchirapalli, represented by its Executive Authority, the Commissioner – Appellant
Versus
The South Madras Electric Supply Corporation Limited represented by its Manufacturing Agents, Sesha-sayee Brothers Pvt. Ltd. , Tiruchi – Respondent
Advocates:
K. Alagiriswami, for Appellant.
C. Ramanathan and V. Narayanaswami, for Respondent.
Ismail, J. — On 7th July, 1925, the Government of Madras granted to the Tiruchirapalli-Srirangam Electricity Supply Corporation Limited, 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 town of Tiruchira- palli and Srirangam. This licence with its conditions has been marked as Exhibit A-94 in these proceedings. The Tiruchirapalli Municipality had its Head Water Works and sub-pumping station run on electricity. Under Exhibit A-1 dated 31st October, 1934, the said Tiruchirapalli-Srirangam Electricity Supply Corporation Limited, Tiruchirapalli 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 licensee a charge calculated at the rate of ten pies per unit (kw
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