In Brief
Bihar State Electricity Board sought to recover Annual Minimum Guarantee (AMG) and other charges from Iceberg Industries Ltd., a brewery customer, and repeatedly disconnected electricity supply despite the consumer's request for instalment payment. The Supreme Court held that the Board's disconnections were illegal and arbitrary. Once the company's representation for instalments was accepted and an agreement was executed, it demonstrated willingness to pay, negating any 'neglect' to pay under Section 56 of the Electricity Act. The Redressal Forum had jurisdiction to hear the dispute. The Board could not charge AMG for periods of illegal disconnection and could not disobey the Forum's orders. The Court dismissed the Board's appeals and upheld the High Court's judgment in favour of the consumer.
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