BIHAR STATE ELECTRICITY BOARD & ANR. vs DHANAWAT RICE AND OIL MILLS

The Supreme Court held that under the Electricity (Supply) Act, 1948, particularly clauses 1, 4, and 13 of the agreement, the Electricity Board is obligated to provide a constant supply of electricity, but this does not equate to a continuous supply. The Court ruled that consumers are liable to pay annual minimum guarantee charges unless they can demonstrate a failure in supply due to circumstances beyond the Board's control, in which case they are entitled to a proportionate reduction. The High Court's decision to quash the demand for minimum guarantee charges was overturned, affirming the need for proportionality in billing based on actual supply failures.