GOPISETTI VENKATARATNAM AND OTHERS vs THE VIJAYAWADA MUNICIPALITY AND OTHERS

The Supreme Court held that under the Indian Electricity Act, 1910, specifically Section 21(2), the consumers had a contractual obligation to pay the enhanced rates as per the 'current official scale of rates' agreed upon with the Municipality. The Court clarified that the term 'current official scale of rates' allows for adjustments in rates over time without requiring prior sanction from the State Government, as there was no alteration of the agreement's conditions. The appeal was dismissed, affirming the legality of the Municipality's rate increases.