ESTER INDS. LTD vs U.P.S.E.B.

The Supreme Court upheld the decision of the Allahabad High Court, affirming that the Uttar Pradesh Electricity Board is not bound by the State Government's directive for a 10% developmental rebate on electricity supply to newly established industries, as per Section 78A of the Indian Electricity (Supply) Act, 1984. The Court clarified that tariff fixation is a legislative policy allowing the Board to unilaterally revise tariffs, and the consumer must adhere to the notified tariff rates. The Court found no merit in the petitioner's claim that the Board was obligated to follow the State's directions, referencing the precedent set in Real Food Products Ltd. & Ors. vs. A.P. State Electricity Board & Ors. [AIR 1995 SC 2234].