WESTERN U.P. ELECTRIC POWER AND SUPPLY CO. LTD. vs STATE OF U.P. & ORS.

The Supreme Court held that the notification directing the Electricity Board to supply energy directly to the 3rd respondent was discriminatory, violating the rights of the petitioner company under its license and Section 3(2)(e) of the Indian Electricity Act, 1910. The Court emphasized that the Board could not supply energy at lower rates to the 3rd respondent without fulfilling the necessary conditions of a scheme or public interest authorization. The notification was thus invalidated as it breached the petitioner company's rights and created unfair competition among consumers.