Restitution after reversal of tariff order can justify interest on unpaid enhanced charges

A High Court order striking down a tariff revision remained binding until reversed, so consumers could not be treated as defaulters for not paying at the revised rate during that period. Once the revised tariff was ultimately upheld, the enhanced charges became enforceable from the original effective dates. The principle of restitution required restoration of the benefit obtained under the erroneous judicial order, and restitution could include interest where justice, equity and fairness so required. Because the company retained the benefit of non-payment and used the sums in its business, interest on the unpaid enhanced amount was recoverable.

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Issues: Whether the electricity board was entitled to recover interest on the unpaid portion of the enhanced tariff bills for the period during which the tariff revision had been struck down by the High Court but was later upheld.

Analysis: A judgment of the High Court striking down the tariff revision remained operative and binding between the parties until it was reversed, and during that period the consumers could not be treated as defaulters in law for non-payment at the revised rate. However, once the validity of the revised tariff was finally upheld, the enforceability of the enhanced charges revived from the dates when the revised tariffs became effective. The principle of restitution requires the party who benefited from an erroneous judicial order to be restored, as far as practicable, to the position that would have existed but for that order. Restitution is not governed by any inflexible rule and may include interest where justice, equity, and fairness so require. Since the company had retained the benefit of non-payment and adjustment of earlier sums, and had used the money in its business, the board was entitled to claim interest on the unpaid enhanced amount.

Conclusion: The demand for interest was valid and the company was liable to pay interest at 18% per annum on the unpaid portion of the bills drawn on the revised tariff basis.

Ratio Decidendi: Where a party has gained the benefit of an erroneous judicial order striking down a monetary liability, and that order is later reversed, restitution may require payment of interest on the unpaid amount from the date the liability originally became enforceable.

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