DIPTE INPUT Vs. BIHAR STATE ELECTRICITY BOARD

JUDGEMENT

(1.) The question for consideration is whether the petitioner is liable to pay the annual minimum guarantee charges even when there is no constant supply of electrical energy by the respondent-Board in terms of the agreement and/or in case where the agreement has been broken by disconnecting the line for non-payment of unauthorised charges ?

(2.) The petitioner is a partnership firm registered as a Small Scale Industry and is engaged in production of steel shots which is an import substitute. The factory is situated at Mihijam in the district of Santhal parganas. It is the only factory engaged in manufacture of steel shots in the State of Bihar according to the petitioner. Steel shots are manufactured through the medium of electric are furnance which needs constant power supply and any interruption and failure in the supply of electrical energy leads to solidifying of the molten or semi-molten steel. In view of the nature of production requiring constant power supply, this type of industry has been characterised by the respondent-Board as the priority sector to be fed by electricity continuosly. It is stated that this industry cannot accept any trippings or interruption in the process of its manufacture while the furnance is in operation.

(3.) On 21-1-1978 the petitioner-company executed an agreement with the respondent-Board in Form I. A copy of the agreement has been annexed as Annexure 2 to the writ application. According to the agreement the respondent- Board agreed to supply and the consumer, namely, the petitioner-company agreed to take energy in bulk at the premises in the schedule annexed to the agreement for its own use subject to certain terms and conditions. Clause 1 (a) of the agreement, which is relevant, reads as under :-