Authority: High Court of Jharkhand, Ranchi (Bench of Justice Ananda Sen)
Order Date: 28 August 2026
Case Overview
- Petitioner: Arush Metal Casting Limited, represented by Director Sanjay Sabherwal.
- Respondents: Jharkhand Bijli Vitran Nigam Ltd. (JBVNL) and its officials.
- The petitioner obtained an electricity connection in September 2004 and deposited an initial security amount of Rs 18,00,000, later increased after the 2025 Electricity Code Regulation.
- The supply agreement was terminated on 31 March 2018 at the petitioner’s request; a provisional bill of Rs 1,01,65,730 was adjusted against the deposit, leaving a balance of Rs 51,53,368 to be refunded.
- Interest on the security deposit was calculated only up to FY 2013‑14; no further interest was shown. The petitioner sought interest up to the actual refund date (October 2021) and challenged the respondent’s calculation limited to FY 2017‑18.
- The petitioner filed a grievance through the MSME portal and subsequently a writ petition (W.P.(C) No. 2821 of 2020), which was disposed on 9 March 2021 directing the authority to decide on the claim. The refund of principal was made in October 2021, but interest was only calculated till 31 March 2018.
Final Outcome
- The Court held that interest on the security deposit accrues annually at the State Bank of India (SBI) Base Rate as of 1 April each year, both during the subsistence of the agreement and after its termination.
- The order dated 04 August 2021 of the respondent limiting interest calculation to FY 2017‑18 is quashed.
- JBVNL is directed to calculate and pay interest on the refunded security deposit from the date of termination (31 March 2018) up to the actual date of disbursement (October 2021), using the SBI Base Rate applicable on 1 April each year.
- The calculated interest must be paid to the petitioner within three months of receipt of a copy of this order.
Topics: Security Deposit Interest, Electricity Supply Regulation, Consumer Rights