STATE OF U.P. & ORS. vs HINDUSTAN ALUMINIUM CORPN. LTD. & ORS.

The Supreme Court examined the validity of the agreement between the Company and the U.P. State Electricity Board under the Electricity Act, 1910, particularly Section 22B, and the Electricity (Supply) Act, 1948, Section 26. The Court held that the U.P. State Electricity Board, as a licensee, must adhere to the terms of the agreement for bulk supply of electricity, and any unilateral increase in rates or imposition of restrictions must be justified under the statutory framework. The Court ruled in favor of the Company, affirming its right to a continuous supply of electricity at the agreed rate, thereby reinforcing the contractual obligations of the State Electricity Board.