ORISSA .STATE ELECTRICITY BOARD versus ORISSA TILES LIMITED

Citation: [1993] 2 S.C.R. 860 · Decided: 31-03-1993 · Supreme Court of India · Bench: B.P. JEEVAN REDDY · Disposal: Appeal(s) allowed

Cited by 1 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

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A 
ORISSA .STATE ELECTRICITY BOARD 
v. 
ORISSA TILES LIMITED 
MARCH 31, 1993 
B 
[B.P. JEEVAN REDDY AND N. VENKATACHALA, JJ.] 
Indian Electricity Act, 1910: 
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c 
Agreement between Electricity Board and Consumer-Provision for 
minimum charges-Default in payment of electricity charges-Disconnectio11 
of supply-Liability of consumer to pay minimum charges for period sub-
~ 
sequent to date of disconnection of supply-Consumer held liable to pay 
minimum charg"' for period subsequent to disconnection. 
D 
The respondent-industry entered into an agreement with the appel-
!ant-Board for snpply of electricity on Sth March, 1965. Under the agree-
ment, which was valid for five years i.e. upto Sth March 1970, consumer 
was obliged to pay certain minimum charges in any event. However, on 
30th April, 1968 supply of electricity to respondent was disconnected for 
,.,l 
non-payment of electricity charges. Since the respondent also failed to pay 
E 
the minimum charges for the period subsequent to the date of disconnec-
lion, the Electricity Board filed a suit for the amount due on account of 
the electricity consumed upto April 30, 1968 and for the minimum charges 
from May 1, 1968 to March S, 1970. The Trial Court decreed the suit. 
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F 
The respondent preferred an appeal before the High Court which 
sustained the Trial Court's decree only for the period upto the date of 
;J., 
disconnection but disallowed the claim for the period subsequent to th• 
date of disconnection on the ground that since -the respondent did not 
avail of any energy whatsoever during the period subsequent to the discon-
G 
nection it was not liable to pay the minimum charges for that perioo. 
In appeal to this Court it was contended on behalf of the Electricity ·"'7 .. 
Board that in view of the judgment of this Court in the case of Bilzar State 
Electricity Board, Patna a11d Ors. v. Mis Green Rubber Industries a11d Ors., 
(1990] I S.C.C. 731 the respondent was liable to pay the minimum charges 
H 
for the period subsequent to disconnection. 
860 
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ORISSA S.E.B. v. ORISSA TILES [REDDY, J.] 
861 
Allowing the appeal dnd setting aside the order of the High Court, A 
this Court, 
HELD: Clause (13) of the agreement between the parties does oblige 
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the consumer to pay a certain minimum charges in any event. The judg-
ment and decree of the Trial Court is restored. [862 E, 863 DJ 
B 
Bihar State Electricity Board, Patna & Ors. v. Mis Green Rubber 
Industries and Ors., (1990] 1 S.C.C. 731, relied on. 
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CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1496 of 
1993. 
c 
·--( 
From the Judgment and Order dated 20.2.1985 of the Orissa High 
Court in First Appeal No.139 of 1974 
Raj Kumar Mehta for the Appellant. 
The Judgment of the Court was delivered by 
D 
B.P. JEEVAN REDDY, J. Heard the counsel for the appellant. None 
appears for the respondent though served. Leave granted . 
.J-.. 
This appeal by the Orissa State Electricity Board is preferred against E 
the judgment of the Orissa High Court allowing partly an appeal preferred 
by the respondent. The dispute pertains to the liability of the consumer 
(respondent in this appeal) to pay the minimum charges during the period 
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subsequent to the date of disconnection of supply of energy to him for the 
non-payment of electricity dues. 
F 
... 
The respondent is an industry. It entered into an agreement with the 
' 
appellant for supply of electricity on .March 5, 1965. The agreement was 
valid for a period of five years. He started availing of the energy with effect 
from July 31, 1965. The supply of his industry was disconnected on April 
30, 1968 for non-payment of electricity charges. Since the consumer also G 
failed to pay the minimum charges for the period subsequent to the date 
+'r 
of <iisconnection, the Board filed a suit for the amount due on account of 
the electricity consumed between April 1, 1968 and April 30, 1968 and for 
the minimum charges for the period May 1, 1968 to March 5, 1970. (It may 
be remembered that the agreement between parties was valid upto March 
5, 1970). The Trial Court decreed the suit as prayed for along with interest H 
862 
SUPREME COURT REPORTS 
[1993) 2 S.C.R. 
A 
of 6% per annum on the amount decreed from the date of suit till the date 
of decree and also future interest at the same rate till full satisfaction. On 
appeal, the High Court sustained the decree of the Trial Court only for the 
period upto the date of c(isconnection (April 30, 1968) but disallo

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