Special electricity tariff under statutory power remains binding; general financial powers cannot override agreed contractual rates.

A special electricity tariff fixed under the Board's statutory power was held binding on the Board and could not be replaced by a later unilateral enhancement. The court reasoned that a stipulation validly made under Section 49(3) was part of the lawful exercise of statutory power, not a mere private term that could be ignored for uniform tariff revision. Section 59 of the Electricity (Supply) Act, 1948 was construed as financial guidance only; it did not authorise breach of valid contractual rates or override a special-rate agreement. The enhanced tariff was therefore unenforceable against the consumer, and the agreed rates remained payable.

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Issues: (i) Whether the Board could unilaterally enhance the tariff for supply of electricity notwithstanding agreements fixing special rates with the consumer. (ii) Whether Section 59 of the Electricity (Supply) Act, 1948 authorised the Board to override those contractual rates because it was operating at a loss.

Issue (i): Whether the Board could unilaterally enhance the tariff for supply of electricity notwithstanding agreements fixing special rates with the consumer.

Analysis: The agreement for supply of electricity at specified rates was treated as having been validly entered into in exercise of the Board's statutory power to fix special tariffs under Section 49(3). A stipulation made in exercise of a statutory power is not a mere private contract term fettering discretion; it is itself a lawful exercise of that power. The Board could not therefore disregard the agreed special tariff and substitute a higher tariff by unilateral action under the guise of fixing uniform rates. The contractual rate was inseverable from the bargain and remained binding on the Board.

Conclusion: The Board had no power to unilaterally enhance the agreed tariff. The issue was decided in favour of the appellant.

Issue (ii): Whether Section 59 of the Electricity (Supply) Act, 1948 authorised the Board to override those contractual rates because it was operating at a loss.

Analysis: Section 59 was construed as laying down only general financial guidance requiring the Board, as far as practicable, not to run its operations at a loss and to adjust charges accordingly. The provision did not contain language overriding agreements or authorising breach of valid contractual stipulations. Since enhancing the tariff in the face of a binding special-rate agreement would not be practicable in law, Section 59 could not be used to defeat the agreed tariff.

Conclusion: Section 59 did not empower the Board to override the contractual rates. The issue was decided in favour of the appellant.

Final Conclusion: The notification enhancing extra high tension tariffs was unenforceable against the appellant, and the agreed contractual rates alone remained payable.

Ratio Decidendi: Where a public authority validly fixes a special tariff in exercise of statutory power, that stipulation binds it and cannot be displaced by a later general power to revise charges unless the statute expressly or by necessary implication so provides.

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