The Madhya Pradesh Madhya Kshetra ... vs Bapuna Alcobrew Private Limited

The Supreme Court upheld the High Court's decision allowing the writ appeal filed by the first respondent, a company engaged in manufacturing liquor, against the cancellation of permission to operate a biogas turbo generating set. The Court emphasized that the appellants, the state electricity distribution utility, had a contractual obligation under the agreements dated 18th November 1991 and subsequent supplementary agreements, which included minimum consumption guarantees. The Court ruled that the cancellation notice issued by the appellants was invalid as it did not follow due process, thereby affirming the High Court's interim order requiring the first respondent to pay minimum guarantee charges.