Madras High Court
M/S. Shri Pkp Spintex Mills (P) Ltd vs The Chairman on 22 July, 2020
Author: N.Anand Venkatesh
Bench: N.Anand Venkatesh
W.P.Nos. 8164, 8522 and 8670 of 2020
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 22.07.2020
CORAM:
THE HONOURABLE MR.JUSTICE N.ANAND VENKATESH
W.P.Nos. 8164, 8522 and 8670 of 2020
and WMP.Nos.9712, 10294 to 10296 of 2020, 10448, 10455
and 10504 to 10506 of 2020
W.P.No.8164 of 2020
M/s. Shri PKP Spintex Mills (P) Ltd.,
Represented by its Managing Director,
P.K.Pounraj,
Having registered office at
No.5-A, South Railway Road, Kumarasamypet,
Dharmapuri - 636 703. ... Petitioner in W.P.No.8164/2020
Vs
1. The Chairman,
Tamil Nadu Electricity Board,
800, Anna Salai,
Chennai - 600 002.
2. The Chief Engineer,
Distribution - Vellore Region,
Vellore.
3. The Superintending Engineer,
Dharmapuri Electricity Distribution Circle,
Dharmapuri.
4. The Executive Engineer,
Operation & Maintenance,
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W.P.Nos. 8164, 8522 and 8670 of 2020
Dharmapuri. ... Respondents in W.P.No.8164/2020
PRAYER in W.P.No.8164 of 2020: Writ Petition filed under Article 226 of
Constitution of India, seeking Writ of Certiorarified Mandamus, calling for the
records relating to the impugned orders of the third respondent dated
29.05.2020 and 01.06.2020, bearing Reference
No.Lr.No.SED/DEDC/DFC/RCS-HT/F.HTSC.No.421/D.No.0/4/2020 and
No.Lr.No.SED/DEDC/DFC/RCS-HT/F.HTSC.No.421/D.No.015/2020 and
quash the same as illegal, arbitrary in so far as it relates to the demand for
Belated Payment Sur-Charge and to permit the petitioner to pay the arrears of
the consumption charges for the period from 01/2020 to 05/2020 in four
quarterly installments and to restore electricity supply to H.T.S.C. No.421 of
the petitioner.
W.P.No.8522 of 2020
Sangeeth Textiles Private Limited,
Represented by its Managing Director,
HTSC No.136,
No.551, Ganesapuram Post,
S.S. Kulam (via)
Annur, Coimbatore - 641 107. ... Petitioner in W.P.No.8522/2020
Vs
1. The Tamil Nadu Electricity Generation and
Distribution Company (TANGEDCO),
No.144, Anna Salai,
Chennai - 600 002.
2. The Superintending Engineer,
TANGEDCO,
Coimbatore Electricity Distribution Circle (North),
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W.P.Nos. 8164, 8522 and 8670 of 2020
Coimbatore - 641 012.
3. The Chief Financial Controller-Revenue,
TANGEDCO,
7th Floor, 144, Anna Salai, Chennai. ... Respondents in W.P.No.8522/2020
PRAYER in W.P.No.8522 of 2020: Writ Petition filed under Article 226 of
Constitution of India, seeking Writ of Certiorarified Mandamus, to call for the
records contained in the monthly current consumption bill (CC Bill) issued by
the second respondent herein dated 07.06.2020 for the billing period May, 2020
with regard to the petitioner's service connection HTSC No.039094300136 and
quash the same in as much as the CC bill has failed to take into consideration
the excess Additional Security Deposit paid by the petitioner company lying
with the second respondent and consequently direct the second respondent to
issue a fresh CC Bill for the billing period May, 2020 and subsequent months
after adjusting the excess Additional Security Deposit paid by the petitioner
company.
W.P.No.8670 of 2020
Southern India Mills Association,
Represented by its Secretary General,
No.41, Race Course,
Coimbatore - 641 018. ... Petitioner in W.P.No.8670/2020
Vs
1.The Tamil Nadu Electricity Generation and
Distribution Company (TANGEDCO),
Represented by its Chairman,
No.144, Anna Salai,
Chennai - 600 002.
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W.P.Nos. 8164, 8522 and 8670 of 2020
2. The Chief Financial Controller-Revenue,
TANGEDCO,
7th Floor,
144, Anna Salai, Chennai - 600 002.
3. Chief Engineer - NCES/ Wind Power,
TANGEDCO,
144, Anna Salai, Chennai - 600 002.
4. Tamil Nadu Electricity Regulatory Commission (TNERC),
Represented by its Secretary,
TIDCO Office Building No.19-A,
Rukmani Lakshmipathy Salai,
Marshalls Road, Egmore,
Chennai - 600 008. ... Respondents in W.P.No.8670/2020
PRAYER in W.P.No.8670 of 2020: Writ Petition filed under Article 226 of
Constitution of India, seeking Writ of Mandamus, directing the respondents 1
to 3 to redraw the CC Bills for the HT consumers from the month of April by
calculating the Current Consumption Deposit in line with the Regulations and
deleting the levy with respect to Power Factor penalty during period of
lockdown imposed by the Government and consequently effect adjustments to
the CC Bills of the members of the petitioner Association for such period to
give effect to the same.
For Petitioner in
[W.P.No.8164/2020] : Mr. T. Sai Krishnan
For Petitioner in : Mr.Rahul Balaji
[W.P.Nos.8522 & 8670/2020] for S. Parthasarathy
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W.P.Nos. 8164, 8522 and 8670 of 2020
For Respondents : Mr.P.H.Aravind Pandian
[in all W.Ps.] Additional Advocate General
assisted by Mr.M.Varun Kumar
Standing Counsel
COMMON ORDER
The main issue involved in all the writ petitions pertain to adjustment of the Additional Security Deposit towards the payment due under the current consumption bills to the TANGEDCO.
2. When the matter came up for admission, this Court passed the following order on 15.07.2020:
"The issue involved in all these writ petitions pertains to the adjustment of the additional security deposit wherever it is found in excess of the requirement towards the payment due to the Electricity Board. Rule 5 of the Tamil Nadu Electricity Supply Code, 2004, mandates that the adequacy of the security deposit must be reviewed once in a year in case of the HT consumers and once in every two years in case of LT consumers taking into account the interest due for credit. These reviews should be normally undertaken in the month of April/May. However, due to the pandemic situation, the Electricity Department was not able to undertake this http://www.judis.nic.in Page No.5/12 W.P.Nos. 8164, 8522 and 8670 of 2020 exercise. In the meantime, HT consumers have approached this Court for a direction to the Electricity Department to adjust the bills from the excess of the additional security deposit in the hands of the department. On the alternative, a suggestion was made to the effect that the consumers themselves will make a self-assessment in accordance with Rule 5 of the Code and adjust the excess additional security deposit and make the payments accordingly and if in case it is found by the department in future that the self-assessment is erroneous, whatever deficit amount requires to be paid can be collected with belated payment surcharge. Failure to make the payment can also result in disconnection of electricity.
2.This Court needs to find a balance to protect the rights of the consumers and at the same time ensure that the Electricity Department is not put to undue hardship. This Court has to take into consideration the prevailing situation and the difficulties faced by the industries in carrying on with their operation. In the given circumstances, the learned Additional Advocate General is directed to take instructions from the department in line with what has been suggested by the learned counsel appearing on behalf of the petitioners and report to this Court during the next date of hearing.
3.Post this case under the caption “ for orders” on 22.07.2020."
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3. When the matter was called today, the learned Additional Advocate General brought to the notice of this Court the notification issued by the Chief Finance Controller/Revenue dated 18.07.2020. By pointing out to the said notification, the learned Additional Advocate General submitted that the HT software has been enabled for the calculation of the security deposit and all the Superintending Engineers have been instructed to follow Regulation 5(5)
(ii) of the Tamil Nadu Electricity Supply Code, 2004.
4. For better appreciation, the said notification is extracted hereunder:
"Through E-Mail Very Urgent TANGEDCO ACCOUNTS BRANCH Memo No.CFC/REV/FC/REV/DFC/AAO/JA/F.ASD Review/D.400/20, dated 18.07.2020 Sub: Electricity-Review of adequacy of Security Deposit(SD) for HT during 2019-20 & allowing of interest on MCD for HT Servies - Instructions -Issued -Reg. \ Ref: 1. TNERC Order No.1 of 2020 dated 17.02.2020
2. Circular Memo.No.CFC/REV/FC/REV/DFC/AAO/JA/F.ASD Review/D.172/20 dt, 09.03.2020.
3. Memo No.CFC/REV/FC/REV/DFC/AAO/JA/F.ASD Review/W.I/D.272/2020, dt. 07.05.2020.
4. D(D)/TG & D(F)/TG Note Approval dated.10.07.2020
5. CMD/TG approval dated.18.07.2020 ***** 1.0) Instructions have been issued for the review of adequacy of security deposit for HT & LT services (LTCT and III B http://www.judis.nic.in Page No.7/12 W.P.Nos. 8164, 8522 and 8670 of 2020 Industries) during the year 2019-20, vide ref.(2) cited.
2.0) Now, as per the approvals cited, the HR softward have been enabled for the calculation of security deposit requirement, issue of Notices for security deposit demand and procedure to be adopted for refund of excess deposit. In this regard, the following instructions are issued:
2.1) The Superintending Engineers/EDCs are instructed to follow the Regulation 5(5)(ii) of Tamil Nadu Electricity Supply Code for ensuring the adequacy of Security Deposit.
2.2) Further, the Superintending Engineer/EDCs are instructed to follow the Regulation 5(5)(iv) & 5(5)(v) of the Tamil Nadu Electricity Supply Code with regard to issue of demand Notices to the HT consumers for Additional Security Deposit.
sdxxxxxxxx dated 18.07.2020 Chief Financial Controller/Revenue All the Superintending Engineers/EDCs. Copy to All the Chief Engineers/Distribution Regions. Copy to Chief Financial Controller/General/TG, Copy to Chief Financial Controller/Regulator Cell/TG. Copy to Chief Engineer/Information Technology (For necessary action).
Copy to Chief Internal Audit Officer/TANGEDCO. Copy submitted to Director (Finance) & Director (Distribution)/TANGEDCO.
Copy to Stock file.
5. The learned counsel appearing on behalf of the respective petitioners submitted that normally the review of the additional security deposit takes place during the Month of April/May and the adjustment takes place during the month of June. However, due to the pandemic conditions, there was a delay in undertaking this exercise and now only the process has been started. http://www.judis.nic.in Page No.8/12 W.P.Nos. 8164, 8522 and 8670 of 2020 It was further submitted that the industries are facing severe financial crunch and therefore if the exercise of the review of the security deposit is completed, the pending bill can be adjusted and if there is any balance, it can be refunded in accordance with Regulation 5(5)(ii) of the Tamil Nadu Electricity Supply Code, 2004. This amount will help the industries to take care of other essential commitments.
6. In reply, the learned Additional Advocate General submitted that already instructions have been issued to the Superintending Engineers across Tamil Nadu to strictly follow Regulation 5(5)(ii) of the Tamil Nadu Electricity Supply Code, 2004 and the process of reviewing the security deposit has already started by enabling the HT software. The learned Additional Advocate General therefore submitted that the adjustment and refund of the balance security deposit, if any, will be strictly made in accordance with the Regulations.
7. This Court takes into consideration the subsequent development that has taken place in this case and also records the submissions made by the learned Additional Advocate General. In view of the specific stand taken by TANGEDCO, no further directions are required to be made and it is expected http://www.judis.nic.in Page No.9/12 W.P.Nos. 8164, 8522 and 8670 of 2020 that the process of reviewing the security deposit will be completed at the earliest and if it is found to be in excess, the same will be adjusted against the current consumption demands and the balance will also be refunded to the consumers and the same shall be done strictly in accordance with regulation 5(5)(ii) of the Tamil Nadu Electricity Supply Code, 2004.
In the result, all the writ petitions are disposed of accordingly. No costs. Connected miscellaneous petitions are closed.
22.07.2020
Index : Yes/No
Internet : Yes/No
Speaking Order: Yes/No
mp/vkr
To
1. The Chairman,
Tamil Nadu Electricity Board,
800, Anna Salai,
Chennai - 600 002.
2. The Chief Engineer,
Distribution - Vellore Region,
Vellore.
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W.P.Nos. 8164, 8522 and 8670 of 2020
3. The Superintending Engineer,
Dharmapuri Electricity Distribution Circle, Dharmapuri.
4. The Executive Engineer, Operation & Maintenance, Dharmapuri.
5. The Tamil Nadu Electricity Generation and Distribution Company (TANGEDCO), No.144, Anna Salai, Chennai - 600 002.
6. The Superintending Engineer, TANGEDCO, Coimbatore Electricity Distribution Circle (North), Coimbatore - 641 012.
7. The Chief Financial Controller-Revenue, TANGEDCO, 7th Floor, 144, Anna Salai, Chennai.
8. The Chief Financial Controller-Revenue, TANGEDCO, 7th Floor, 144, Anna Salai, Chennai - 600 002.
9. Chief Engineer - NCES/ Wind Power, TANGEDCO, 144, Anna Salai, Chennai - 600 002.
10. Tamil Nadu Electricity Regulatory Commission (TNERC), Represented by its Secretary, TIDCO Office Building No.19-A, Rukmani Lakshmipathy Salai, Marshalls Road, Egmore, Chennai - 600 008.
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