M/S Raymond Limited & Anr., Etc. Etc vs Madhya Pradesh Electricity Board & ...

The Supreme Court upheld the Madhya Pradesh High Court's decision that the Electricity Board can only charge for the actual energy supplied when the contracted supply falls short of 40% of the contract load, thereby overruling the previous decision in M/s Gwalior Steels Private Ltd. vs M.P. Electricity Board (AIR 1993 M.P. 118). The Court clarified that the minimum guarantee clause in the contract does not permit the Board to charge minimum charges based on the contract load when the actual supply is less. The judgment was rendered under the provisions of the Electricity Act, affirming the principle of fair billing practices in electricity supply contracts.