Madras High Court
M.R. Krishnamurthy Co-Op Sugar Mills ... vs Tamil Nadu Generation And Distribution ... on 29 June, 2022
Author: Mohammed Shaffiq
Bench: Mohammed Shaffiq
W.P. No.6560 of 2015
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 29.06.2022
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ
W.P. No.6560 of 2015
and
M.P.Nos.3 and 4 of 2015
M.R. Krishnamurthy Co-op Sugar Mills Limited,
Rep by its Administrator,
Sethiyathope-608 702
Chidambaram Taluk,
Cuddalore District. ... Petitioner
Vs.
1. Tamil Nadu Generation and Distribution Corporation Limited
Represented by its Chairman,
NPKRR Maaligai,
144, Anna Salai, Chennai 600 002.
2. The Chief Finance Controller/Revenue
TANGEDCO ( Accounts Branch),
144, Anna Salai, Chennai 600 002.
3. The Director ( Finance)
TANGEDCO,
144, Anna Salai, Chennai 600 002.
4. The Superintending Engineer,
TANGEDCO,
Cuddalore Electricity Distribution Circle,
Capper Hills, Cuddalore – 607 004.
1/8
https://www.mhc.tn.gov.in/judis
W.P. No.6560 of 2015
5. Tamil Nadu Electricity Regulatory Commission,
No.19A, Rukmini Lakshmipathy Salai,
Egmore, Chennai 600 008.
... Respondents
PRAYER: Writ Petition filed under Article 226 of the Constitution of India,
praying to issue a Writ of Certiorarified Mandamus calling for the records of
the second Respondent in the impugned instruction the Second Respondent
in Letter No./CFC/FC/DFC/AAO.HT/AS.3/D.No.126/13 dated 07.09.2013
and the consequent demand notices received from the 4th Respondent in
Lr.No. SE/CEDC/CUD/DFC/AO/Rev/RCS/AS/F. Tariff/ 2013 dated
25.10.2013 and to consequently direct refund of the sum of Rs.25,01,105/-
collected towards start-up power charges from the petitioner together with
interest at the same rate charged by the Respondents towards Belated
Payment surcharge and quash the same and to consequently direct the
Respondents to collect payment for drawal of power during season and off-
season in terms of the PPA and applicable Tariff Orders or in the alternative
to collect payment for drawal of power under HT I A both during season and
off-season and pass orders.
For Petitioner : Ms. Simran Srinivasan for
Mr. Rahul Balaji
For Respondents 1 to 4 : Mr. L. Jai Venkatesh
For Respondent 5 : No appearance
ORDER
This writ petition is filed calling for the records of the 2nd Respondent in Letter No./CFC/FC/DFC/AAO.HT/AS.3/D.No.126/13 dated 07.09.2013 and the consequent demand notices received from the 4th Respondent in Lr.No. SE/CEDC/CUD/DFc/AO/Rev/RCS/AS/F. Tariff/ 2013 dated 25.10.2013 and to consequently direct refund of the sum of Rs.25,01,105/-
2/8https://www.mhc.tn.gov.in/judis W.P. No.6560 of 2015 collected towards start-up power charges from the petitioner together with interest at the same rate charged by the Respondents towards belated Payment of surcharge and quash the same and to consequently direct the Respondents to collect payment for drawal of power during season and off-
season in terms of the PPA and applicable Tariff Orders or in the alternative to collect payment for drawal of power under HT I A both during season and off-season and pass orders.
2. It is submitted by the learned counsel for the Petitioner as well as the Respondents that this Court in a Batch of matters in W.P.Nos.26266,26553 etc., dated 27.08.2021, on the very same issue had directed the TNERC to pass final orders.
3. It is also submitted by both the counsels that similar orders can be passed in this writ petition. The relevant portions of the said order is extracted below:
“25....... this court will now proceed to set out certain best practices in line with the spirit behind the Electricity Act, 2003 and this court expects TANGEDCO to scrupulously follow the same in future and avoid unnecessary litigations and consequent loss of 3/8 https://www.mhc.tn.gov.in/judis W.P. No.6560 of 2015 revenue.
I. TANGEDCO should establish clear policies for immediate implementation of orders issued by the TNERC and the Implementation should commence immediately after the tariff orders are issued.
II. Such implementation should take place by way of appropriate Implementation Circulars for adherence by the jurisdictional officers and the consumers/public.
III. Prior to issuance of such implementation Circulars, the draft should be placed before the TNERC for approval and on its website for any public comments to be provided directly to the TNERC.
IV. The TNERC shall within a strict timeline, approve such circulars with such modifications or changes as it deems fit after considering all aspects/inputs.
V. The approval of the implementation Circular in as much as it is done on the administrative and regulatory side by the TNERC would not by itself affect the rights of stakeholders, since it is only the orders issued under the Statute and Regulations, which would cover the field and be paramount. However, such best practice is advisable for reasons of transparency and avoiding unnecessary litigation.
VI. In terms of mandate of S.45(2)(b), the implementation circulars or instructions issued by the TANGEDCO to its field officers should mandatorily be made available on the website of the TANGEDCO and be easily accessible to all. This would ensure that all stakeholders are fully aware of the orders and the manner 4/8 https://www.mhc.tn.gov.in/judis W.P. No.6560 of 2015 of their implementation.
26.The above discussion leads to the final phase of the order. This court is inclined to transfer all these Writ Petitions to the file of the Tamil Nadu Electricity Regulatory Commission, Chennai by setting out the following issues which requires clarification from TNERC in line with the tariff order passed by TNERC in TP No. 1 of 2013 dated 20.06. 2013.
a. Clarify whether, in case of drawal of start~up power by generators, whether the same should be charged at the rate of energy and energy equated demand charges or whether it should be charged on the basis of two~part tariff and how the charges are to be raised and recovered.
b. Whether, if the drawl of start~up power by generators are to be billed on the basis of two part tariff of 300 Rs./KVA/Month and 9.50 Rs./kWh, the demand charges should be pro~rated to actual hours of usage instead of calculating it for the entire month.
c. Whether, if the drawl of start~up power by generators are to be billed on the basis of two part tariff of 300 Rs./KVA/Month and 9.50 Rs./kWh, the demand charges are to be based on actual percentage of maximum demand or on the demand being fixed by TANGEDCO.
d. How different categories of generators are to be treated while determining the startup charges and ;
e. To issue appropriate orders under S.62(6) of the Act, in case of payments to be made to the generators/consumers since the petitioners have deposited charges in compliance with the conditional orders passed by this court.
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27. The TNERC is directed to pass final orders within a period of 3 months from the date of receipt of copy of this order after issuing adequate publicity in line with the provisions extracted supra. This will enable all the stakeholders to give their inputs and it need not be confined only to the petitioners. The interim orders passed by this court during the pendency of these Writ Petitions, shall continue to be in force till final orders are passed by TNERC.
28. All the Writ Petitions are accordingly disposed of. The registry is directed to transfer all the Writ Petitions to the file of TNERC, Chennai forthwith.”
4. It is submitted by the learned counsel for the petitioner and the Respondents that the matters are still pending before the TNERC though the timelines set out by this Court for the TNERC to pass final orders has expired.
5. Recording the same, the present writ petition is also remanded back to the TNERC leaving it open to the petitioner to make submission in the said proceedings which is stated to be pending before the TNERC.
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6. With the above directions, the writ petition is disposed of on the above terms. Consequently, the connected miscellaneous petitions are closed.
No costs.
29.06.2022 Speaking (or) Non Speaking Order Index : Yes/ No smn 7/8 https://www.mhc.tn.gov.in/judis W.P. No.6560 of 2015 MOHAMMED SHAFFIQ, J.
Smn To:
1. Tamil Nadu Generation and Distribution Corporation Limited Represented by its Chairman, NPKRR Maaligai, 144, Anna Salai, Chennai 600 002.
2. The Chief Finance Controller/Revenue TANGEDCO ( Accounts Branch), 144, Anna Salai, Chennai 600 002.
3. The Director ( Finance)TANGEDCO, 144, Anna Salai, Chennai 600 002.
4. The Superintending Engineer, TANGEDCO,Cuddalore Electricity Distribution Circle, Capper Hills, Cuddalore – 607 004.
5. Tamil Nadu Electricity Regulatory Commission, No.19A, Rukmini Lakshmipathy Salai, Egmore, Chennai 600 008.W.P. No.6560 of 2015
and M.P.Nos.3 and 4 of 2015 29.06.2022 8/8 https://www.mhc.tn.gov.in/judis