V.K.khanna, J. - (1.) Petitioner Modi Spinning and Weaving Mills Co. Ltd. Modi- nagar is a Public Limited Company incorporated under the Indian Companies Act having its registered office at Modinagar and is running a textile manufacturing unit. For the purposes of running its unit it gets its electrical energy from the U.P. State Electricity Board (hereinafter referred to as the Board) under an agreement executed between the parties. The dispute in the present writ petition centres round the question as to whether the Board can disconnect the supply of electrical energy to the petitioner's textile mills in exercise of its power u/ S. 24 of the Indian Electricity Act after the petitioner's unit has been declared as a sick industrial company under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985.
(2.) Brief admitted facts for the purposes of adjudication of the question raised in the present writ petition are that the petitioner had filed a Civil Misc. Writ Petition No. 6915 of 1986 before the Lucknow Bench of this Court wherein the petitioner had challenged the notification dated 28-1-1986. by means of which the respondent Board had revised the rates of power tariff. In the aforesaid writ petition a stay order was granted in favour of the petitioner which stood vacated when the writ petition was finally dismissed on 7-5-1990.
(3.) The Board on 11-5-1990 intimated the petitioner that the total outstanding demand towards the petitioner amounted to Rupees 2,l7,30,335.65p. According to the petitioner as the Board was intending to disconnect the electricity supply to the petitioner's unit, the petitioner's unit and its sister concerns had to agree in writing vide letter dated 31-5-1990 that a substantial amount shall be paid by 4-6-1990 and the balance amount will be paid in monthly instalments of Rs.6 Lakhs with effect from August, 1990. The petitioner's unit and its sister concerns gave an assurance that if the Board does not disconnect their electricity supply they would not file any appeal against the judgment of the High Court dated 7-5-90 before the Supreme Court. In pursuance of the aforesaid agreement certain amounts were paid by the petitioner's unit.;