M/S RAYMOND LTD. vs M.P.ELECTRICITY BOARD .

The Supreme Court upheld the Madhya Pradesh High Court's ruling that the Electricity Board can only charge for the actual energy supplied when the contracted supply falls short of 40% of the contract load, as per the contractual agreement. This decision overruled the previous Division Bench ruling in M/s Gwalior Steels Private Ltd. vs M.P. Electricity Board (AIR 1993 M.P. 118). The Court clarified that the minimum charges cannot be levied if the supply is below the stipulated threshold, thereby ensuring fairness in billing practices under the Electricity Act.