RAYMOND LIMITED Vs. MADHYA PRADESH ELECTRICITY BOARD

JUDGEMENT

(1.) The above batch of appeals arise out of a common judgment rendered in a batch of writ petitions by a Full Bench of the Madhya Pradesh High Court, since, reported in AIR 1999 Madh Pra 143 and also the consequential separate orders passed subsequently by the Division Bench dismissing the writ petitions. The writ petitioner-Industries filed appeal against that portion of the opinion of the Full Bench confining the declaration of law made for prospective application only and the dismissal of the writ petitions, whereas, the Electricity Board had filed appeals against that portion of the opinion of the Full Bench declaring the position of law that whenever the contracted supply falls short of 40% of the contract load then the Board shall be entitled to charge only for the reduced energy actually supplied and not for 40% of the contract load as minimum charges and thereby overruling an earlier decision of a Division Bench of the said High Court reported in M/s. Gwalior Steels Private Ltd. vs. M. P. Electricity Board, AIR 1993 Madh Pra 118. For the purpose of appreciating the points raised, we would advert to the facts in one of these appeals, particularly those in M/s. Raymond Ltd. in C.A. Nos. 4218-4219 of 1998.

(2.) The appellant M/s. Raymond Ltd., a company registered under the Companies Act, 1956 and having its cement manufacturing division within the State of Madhya Pradesh, entered into an agreement with the Madhya Pradesh Electricity Board on 27-3-1979 renewed periodically for supply and purchase of high tension electric energy for use in the manufacture of cement. The minimum contractual demand was for 33 MW (38,822 KVA) per day and clause 19 provided for the Tariff, while clause 21 stipulated the term relating to minimum guarantee in the following terms :

(3.) Under the notification issued for High Tension for 132 KV/220 KV supply, the minimum tariff prescribed for cement factories is said to be as hereunder :