In Brief
The Bihar State Electricity Board appealed the High Court's judgment which found that the disconnection of electricity supply to Iceberg Industries Ltd. for non-payment of AMG charges was arbitrary. The Board contended the company had defaulted on payment obligations. The Supreme Court upheld the High Court's decision, holding that when the Board subsequently accepted the company's instalment payment arrangement after the disconnection, it demonstrated the company's willingness to pay. This acceptance of the instalment plea negated any culpable default and rendered the earlier disconnection action unjustified and arbitrary under the Electricity Act, 2003.
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