SIHOR ELECTRICITY WORKS LTD. vs THE GUJARAT ELECTRICITY BOARD AND ANR.

The Supreme Court held that under Section 2(8) and Section 19(1)(b)(ii) of the Electricity (Supply) Act, 1948, the 'maximum demand' must relate to an existing state of facts and cannot be based on hypothetical future demands. The Court found that the comparison for direct supply eligibility must be made between the actual maximum demand of the licensee at the time of request and the demand of the applicant, not anticipated future demands. The Court upheld the trial court's decree, ruling that the first respondent's decision to grant direct supply was ultra vires.