P&H High Court Upholds LS Tariff Demand; Says Load Reduction Request Alone Cannot Change Category

Case Name: M/s International Stone Crushing Company vs. Haryana State Electricity Board & Others
Date of Judgment: 10 November 2025
Citation: RSA-3674-1998
Bench: Hon’ble Mr. Justice Deepak Gupta

Held: The Punjab & Haryana High Court upheld the First Appellate Court’s decision that the plaintiff remained liable to pay LS tariff because its sanctioned load stood at 75.200 KW. The Court held that tariff classification depends on sanctioned load, not actual consumption. It ruled that merely applying for reduction to 65.950 KW did not alter the category unless the competent authority passed a formal order. Relying on PSEB v. Ashwani Kumar (1997) 5 SCC 120, the Court held that billing must follow the sanctioned load until it is lawfully reduced.

Summary: The plaintiff received an MS-category electricity connection with a sanctioned load of 75.200 KW. It later applied for reduction to 65.950 KW and continued consumption below that limit. The dispute began when the Board raised two bills, including ₹10,244.20 as LS–MS differential for six months. The plaintiff claimed that LS tariff was illegal because it never consumed above the requested reduced load. The defendants argued that under Sales Circular 1/88, any load above 70 KW attracted LS tariff and that no reduction had been approved. The Trial Court accepted the plaintiff’s plea and restrained recovery. The First Appellate Court reversed this finding, holding that sanctioned load alone determined tariff. The High Court agreed. It ruled that actual consumption cannot override sanctioned contractual terms, and a consumer cannot unilaterally assume a change in category. It found no perversity or illegality in the appellate findings.

Decision: The appeal was dismissed. The judgment and decree dated 19.02.1998 of the District Judge, Bhiwani, were affirmed. No order as to costs.