THE AMALGAMATED ELECTRICITY CO. LTD. vs N.S. BHATHENA AND ANOTHER

The Supreme Court held that the maxima prescribed by the State Government under the Indian Electricity Act, 1910, no longer limited the rates a licensee could charge after the Electricity Supply Act, 1948, came into force. The Court established that the licensee had a statutory right to adjust rates as per Schedule VI of the 1948 Act. Furthermore, it ruled that in challenges to the legality of rates under the 1948 Act, the burden of proof lies with the party alleging a right to relief, not the licensee. The Court concluded that civil courts lack jurisdiction to declare rates illegal based on excess profit unless specific conditions under the Act are met.