NEW CENTRAL JUTE MILLS CO. LTD. vs UTTAR PRADESH ELECTRICITY BOARD, LUCKNOW & ORS.

The Supreme Court upheld the legality of the surcharge of 5.5 paise per unit imposed by the Electricity Board on the appellant for drawing electricity in excess of the permissible limit set by the State Government under Section 22-B of the Indian Electricity Act, 1910. The Court found that the Board had the authority to levy such a surcharge as per Section 49(3) of the Electricity Supply Act, which allows for different tariffs based on various factors including supply shortages. The appeal was dismissed, affirming the lower court's decision that the surcharge was valid and did not violate the terms of the agreement.