BIHAR STATE ELECTRICITY BOARD, PATNA AND ORS vs GREEN RUBBER INDUSTRIES AND ORS.

The Supreme Court held that under the Electricity Supply Act, 1948, the relationship between the consumer and the Electricity Board is primarily contractual, and the terms of the agreement must be adhered to unless specifically terminated. The Court found that the agreement for minimum guaranteed charges remained valid despite the disconnection of supply, and the Board was entitled to recover the charges for the period until the contract was formally terminated. The appeal was allowed, reversing the High Court's decision that quashed the bills beyond September 1981.