In Brief
An electricity distribution utility demanded unpaid minimum guarantee charges for 1996–2000 from an industrial consumer nine years later. The consumer had run a captive power generator, allegedly in breach of supply conditions, leading to a cancellation notice. The consumer challenged this in court, and the High Court's interim orders made deposit of disputed charges a condition for staying the cancellation. Years later, when the utility issued a fresh demand notice, the consumer sought to quash it, arguing the two-year limitation under the 2003 Electricity Act applied. The Supreme Court held that the limitation period applies only to liabilities accrued under the 2003 Act, not earlier ones. More importantly, the Court found that the consumer had not appealed earlier court orders deciding liability in the utility's favour, so issue estoppel barred re-litigation. The demand was upheld, and the appeal was allowed.
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