Nipha Steels Ltd. And Anr vs West Bengal State Electricity Board And ...

The Supreme Court held that the West Bengal State Electricity Board's demand for maximum demand charges was improper in light of the disrupted supply of electricity, as per the agreements made under the Indian Electricity Act, 1910, and the Electricity (Supply) Act, 1948. The Court emphasized that the intention of the parties was for uninterrupted supply, and thus, charges should be abated during interruptions. The Court upheld the Single Judge's interpretation that the absence of specific provisions for maximum demand charges in cases of disruption indicated a need for remission, reversing the Division Bench's contrary view.