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The proposed rate were enclosed and they were:--

First 1000 Units per month - 1.25 annas per unit Next 4000 Units Per month - 0.80 anna per unit; and all in excess per month - 0.60 anna per unit Minimum monthly Charge. Rs. 100/-

2. By its resolution dated 24-6-39, the Municipal council agreed to the rates proposed by the company for supply of power to main pumping station, sub-pumping station and other electrical installations within the Municipal limits. Even after the expiration of the period of seven years from the date of the agreement Ex. A.1. neither party gave notice of termination and no revised agreement was actually entered into in writing as contemplated in Ex. A.2. It is the common case of the parties that the original agreement continued to subsist with the revised rates as agreed to between the parties as referred to above. Meanwhile the Tiruchirapalli-Srirangam Electricity Supply Corporation Ltd., Tiruchirapalli, and two other electricity supply undertaking were merged in the South Madras Electric Supply Corporation Ltd., the respondent in these appeals and the licence Ex. A.94 had been assigned to the respondent as per G.O.P. No. 1805 dated 26th August 1940. Subsequently, the Electricity (Supply) Act. 1948 (hereinafter referred to as the '1948 Act') was passed. Purporting to exercise it powers conferred on it by the provisions of the said Act, the respondent herein proposed to revise its charges for the supply of electrical energy with effect from 1st December 1956 and Ex. A.34 is a copy of the printed notice giving the proposed revised rates. This communication pointed out that the revision had be found necessary to enable the respondent to recoup partially the 30 per cent increase in surcharge levied on its bills by the Government Electricity Department from 1st August 1956. It has to be mentioned at this stage that at the time when Ex. A.1 agreement was entered into power was generated by the company itself by means of generating sets, but from 1939 the Government started supplying power in bulk to the company and the company had to discontinue generating electricity and it is the surcharge which the government levied on the bills for the supply of energy to the company that was referred to in this communication. Part B of Ex. A.34 dealt with the General Industrial tariff and paragraph 4 therein was applicable for the supply of electrical energy to the Municipality and the rate provided for in paragraph 4(a) are;