Bihar State Electricity Board vs The Patna Electric Supply Co. Ltd. & Ors

The Supreme Court held that under the Indian Electricity Act, 1910, the Bihar State Electricity Board (BSEB) is obligated to pay the Patna Electric Supply Company Limited (PESCO) the book-value of assets taken over, amounting to 135.45 lakhs, of which 99.72 lakhs had been paid, leaving a balance of 35.74 lakhs. The Court affirmed that BSEB cannot contest the consumer dues calculated in the book value and recognized PESCO's entitlement to an additional 36.59 lakhs, contingent upon proof of payment to the Bank of India. The Court directed BSEB to pay interest on the amounts due upon submission of requisite documentation by PESCO.