Law:

Section:

Contract Act (IX of 1872)- - - S. 37-Parties to contract, obligation of-Terms of agreement between parties reserving power to respondent to increase rates for supply of energy unilaterally-Contention that increase in rates being unconscionable and discriminatory was un-enforceable and petitioner was liable to pay on rates originally stipulated, held, rightly rejected by lower Court. Karachi Gas Company v. Dawood Cotton Mills Ltd. P L D 1975 S C 193 ref. JUDGMENT MUHAMMAD GUL, J.-This petition is from the order of the Lahore High Court dated 9-7-1974, dismissing in limine Regular Second Appeal by the petitioner herein, in a dispute between him and WAPDA, respondent with regard to the rates of electricity charged by the latter. The petitioner has installed a tubewell for the irrigation of land. The tubewell is worked by an electric motor which operates on the electric energy supplied by the respondents. It appears that under the terms of agreement between the parties, the petitioner originally undertook to pay the respondent a fixed charge of Rs. 8 per month per K. W. and in addition to a charge of paisas 0-04 per unit of the electricity consumed. However, under the terms of the agreement, the respondent reserved to itself the right to vary unilaterally the rates for the supply of electric energy to the petitioner. Pursuant to this reservation, the respondent increased the rate of electricity actually…

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