0.9680636028533384 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/FIRST APPEAL NO. 4660 of 2025 [On order dated 03/03/2026 in R/FA/4660/2025 ]

With CIVIL APPLICATION (FOR INTERIM RELIEF) NO. 1 of 2025 In R/FIRST APPEAL NO. 4660 of 2025 With R/FIRST APPEAL NO. 4665 of 2025 With CIVIL APPLICATION (FOR INTERIM RELIEF) NO. 1 of 2025 In R/FIRST APPEAL NO. 4665 of 2025 FOR APPROVAL AND SIGNATURE:

HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA AGARWAL and HONOURABLE MR.JUSTICE D.N.RAY ==========================================================

Approved for Reporting Yes No ==========================================================

DAKSHIN GUJARAT VIJ COMPANY LTD Versus KADAKIA ALKALIES AND CHEMICALS PRIVATE LIMITED & ANR.

==========================================================

Appearance:

MR. S.N.SOPARKAR, SR.ADVOCATE WITH MS. LILU K.BHAYA, LD.ADVOCATE WITH MS. KRISHNA K BHAYA(13331) for the Appellant(s)

No. 1 MR. DHAVAL C.DAVE, SR.ADVOCATE WITH MR. BIJAL CHHATRAPATI AND MR. ARVIND PARIKH, LD. ADVOCATE FOR J SAGAR ASSOCIATES(8162) for the Defendant(s) No. 1 ========================================================== CORAM:HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA AGARWAL and HONOURABLE MR.JUSTICE D.N.RAY Date : 03/03/2026

JUDGMENT

(PER : HONOURABLE MR.JUSTICE D.N.RAY)

1. Heard Mr. S. N. Soparkar, learned Senior advocate with Ms. Lilu K. Bhaya, learned advocate with Ms. Krishna K.

0.9680636028533384 Bhaya for the appellant and Mr. Dhaval C. Dave, learned advocate with Mr. Bijal Chhatrapati, learned advocate with Mr. Arvind Parikh, learned advocate for the respondent No.1.

2. Issues raised in First Appeal No. 4660 of 2025 and First Appeal No. 4665 of 2025 are substantially identical and they were heard together. For the sake of convenience, First Appeal No. 4660 of 2025 is treated as the lead matter, and the decision rendered herein shall govern the outcome of the connected appeal as well. Factual matrix of the First Appeal No. 4660 of 2025, in nuce, is as under:-

2.1 The appellant, originally the applicant, is the Electricity Board for the State of Gujarat, entrusted with the functions of generation, procurement, transmission, and distribution of electrical energy within the State. Respondent No.1, the original opponent No.1, is a registered company engaged in manufacturing activities and operates its industrial unit at Village Borindra, Taluka Ankleshwar, District Bharuch. Respondent No.2, Shri B.K. Patel, who acted as the Sole Arbitrator in the dispute, had previously served as a Member (Technical) of the Electricity Board and had retired prior to

0.9680636028533384 the arbitration proceedings.

2.2 Respondent No.1 applied to the appellant Board for the supply of electrical energy for its manufacturing unit. Pursuant to such request, the appellant sanctioned and allotted a contract demand of 12,000 KVA to Respondent No.1. An agreement incorporating the said conditions of supply was executed between the parties as a prerequisite for availing electricity supply. It is the case of the appellant that the supply of electricity to the Respondent No.1 commenced on or about 16.08.1995. In accordance with the standard practice of the Board, the electricity meter installed for such consumer was pre-tested in the Board’s laboratory before installation. After installation, the meter was subjected to periodic testing. On 05.09.1995, the meter was tested and found to be slow by 0.41%. Subsequently, on 18.12.1995, it was again tested and found to be fast by 1.122%. According to the appellant, both deviations were within the permissible limits prescribed under the applicable regulations and therefore did not affect billing. It is alleged that a further test was scheduled around 22.01.1996; however, the same could

0.9680636028533384 not be conducted due to insufficient load.

2.3 Thereafter, after recording the complaints, on or about 19.02.1996, the existing meter bearing No.3020701 was replaced with another meter bearing No.3014403. However, it is averred tha