In Brief
An industrial steel manufacturer applied for 500 KVA electricity supply and claimed exemption from minimum guarantee charges under a 1995 state policy. During 1999-2000, the Maximum Demand Indicator (MDI) meter recorded the consumer drawing power exceeding 500 KVA for six months, breaching the contract. The High Court quashed the demand, holding the meter unreliable. The Supreme Court upheld the Board's demand, finding the MDI meter is a credible and internationally accepted device for measuring actual power drawn. Once actual maximum demand exceeds contracted load, exemption is lost. The Court set aside the High Court's orders and upheld the electricity board's demand.
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