Conditions of State in an agreement has to be fair and reasonable
Jharkhand State Electricity Board and Others vs. M/S Ramkrishna Forging Limited [Civil Appeal No.6145 Of 2010]
Brief: In the instant appeal of the Jharkhand State Electricity Board, the Hon’ble Supreme Court upheld the decision of the Hon’ble Jharkhand High Court allowing writ petition against order of the Board refusing to reduce the electricity load to 1325 KVM before the expiry of the term of agreement.
RELEVANT PARAGRAPH
15. It is noteworthy that the Jharkhand State Electricity Board (‘the Board’) is a monopoly supplier of electricity which has laid down its own terms and conditions, regarding which the consumer has no say or choice but to sign on the dotted lines, if it wants of get electricity load varied for running its industry. The Board is an instrumentality of the State. It has to be fair and reasonable. If the Regulations provide for contract load to be varied even through a written communication, then in our considered view, in all fairness, though fresh agreements may have been executed at the stage of enhancement of load of the same electricity connection, the same cannot be treated as anything but an extension/amendment or modification of the initial agreement granting the electricity connection, which in the present case would be the agreement dated 14.04.2004. On the dictates of the Board, the consumer may have been required to sign fresh agreements for each enhancement of load, but the enhancement being for the same electricity connection which still continues, it would merely be amendment of the initial agreement. This would also be in consonance with the provisions of the Regulations of 2005, which have to be liberally interpreted in favour of the consumer.