C.K. Prasad, J.

1. Petitioner No. 1 is a company incorporated under the Companies Act and engaged in the business of manufacture of Cement and one of its Unit is at Jamul in the district of Durg. Petitioner No. 2 is a share holder of Petitioner No. 1. Petitioner No. 1 i.e. Associated Cement Companies Ltd., (hereinafter referred to as the Petitioner) as also the Madhya Pradesh Electricity Board (hereinafter referred to as the 'Board') entered into an agreement for high tension supply of 33,530 KVA electric energy on 22nd October, 1986. The agreement was to be valid for 5 years from the date of its commencement which is to continue upon the same terms and conditions after the expiry of the aforesaid period. After expiry of the period of 5 years, same is subject to termination by either party by giving 3 months notice in writing.

2. The Government of India, the Government of Madhya Pradesh and the M. P. Electricity Board took cognizance of the fact that the availability of electricity, which is an important component for giving thrust to the industrial growth leading to the economic development, is not adequate and consequently framed power policy and published it from time to time emphasising and encouraging the industries to install captive power plants to meet their requirement. The policy statement made by the State Government and the Board do indicate the constant power deficiency. One of such policy decision of the State Government is dated 20th May, 1996 which inter alia provides that the Board shall permit a consumer who establishes its captive power plant, to reduce its contract demand to the extent of zero. Last of the power policy dated 9-10-1998 framed by the State Government had been published in the State Gazette on 16th October, 1998. In the light of the policy of the State Government, Board wrote letters to various industries including the Petitioner to install its own power plant by letter dated 19-6-1997.

3. Prior to that, by letter No. JML/PH/963 dated 5-12-1995 (Annexure P/13) Petitioner wrote to the Board for grant of consent to install and run generating sets based on thermal energy sources as captive generating set to meet its partial power requirement. In this letter, Petitioner stated that the present contract demand shall be continued and maximum power available from the Board shall be availed. Petitioner wrote another letter on the same day bearing No. JML/PH/964 dated 5-12-1995 for grant of consent for installation and running generating sets; but unlike the earlier letter, there is no mention as regard to the continuance of present contract demand. Board by its letter dated 25-3-1996 (Annexure P/15) granted consent under Section 44 of the Electricity (Supply) Act, 1948 to instal and run one 25 MW thermal generating set. While granting consent; the Board put the following condition in regard to contract demand:

(v) From the date of operation of the aforesaid TG set, you would be required to guarantee a minimum monthly consumption equivalent to load factors, as under:

(i) For the period when power cut is imposed by the Board.

Consumption in units equivalent to 66% load factor on the ceiling on CD.

(ii) For the period when power cut is not imposed.

Consumption in units equivalent to 40% load factor on the CD.

From the date of operation of the TG Set, for the purpose of billing, the relevant provisions of tariff minimum charges in the HT tariff, as amended applicable to the consumer from time to time, shall stand modified to the above extent.

While granting the consent, the Board has referred to the Petitioner's letter No. JML/PH/964 dated 5-12-1995.

4. It is the stand of the Petitioner that in its letter No. JML/PH/964 dated 5-12-1995 it did not give any assurance that it will continue with the contract demand and the consent having been given in response to the said letter, Board ought not to have put any condition of minimum monthly consumption.

5. Petitioner in the light of the consent granted by the Board,