M.P. State Electricity Board & Anr vs Grasim Industries Ltd

The Supreme Court addressed the legality of the Madhya Pradesh High Court's decision regarding the deletion of Clauses 21(f) & 21(g) from the Board's General Conditions for Supply of Electrical Energy, which pertained to interest on security deposits. The Court held that the Division Bench of the High Court misinterpreted the judgment in Ferro Alloys Corpn. Ltd. v. A.P. State Electricity Board, specifically paragraph 158, which affirms the Board's authority under Section 49 of the Electricity (Supply) Act, 1948 to maintain such clauses. Consequently, the appeals were allowed, reinstating the provisions for interest on security deposits.