Madras High Court
Tamil Nadu Electricity Board vs Mani Spinning Mills (P) Ltd on 2 August, 2012
Author: R.Banumathi
Bench: R.Banumathi, G.M.Akbar Ali
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 02/08/2012
Coram
THE HONOURABLE MRS.JUSTICE R.BANUMATHI
AND
THE HONOURABLE MR.JUSTICE G.M.AKBAR ALI
WRIT APPEAL (MD)No.407 OF 2012
WRIT APPEAL (MD)No.408 OF 2012
WRIT APPEAL (MD)No.409 OF 2012
WRIT APPEAL (MD)No.410 OF 2012
WRIT APPEAL (MD)No.411 OF 2012
WRIT APPEAL (MD)No.412 OF 2012
AND
M.P.(MD)No.1 of 2012 in all the above Writ Appeals
W.A.(MD)Nos.407 and 408 of 2012
1.Tamil Nadu Electricity Board,
Represented by its Chairman,
800, Anna Salai, Chennai - 600 002.
2.The Superintending Engineer,
Dindigul Electricity Distribution Circle,
Tamil Nadu Electricity Board,
Dindigul. ... Appellants
Vs.
Mani Spinning Mills (P) Ltd.,
HT SC No.177,
Nagamapatty Village, Vedasandur,
Dindigul District,
represented by its General Manager,
G.T.Sambandam ... Respondent
W.A.(MD)No.409 of 2012
1.Tamil Nadu Electricity Board,
Represented by its Chairman,
800, Anna Salai, Chennai - 600 002.
2.The Superintending Engineer,
Dindigul Electricity Distribution Circle,
Tamil Nadu Electricity Board,
Dindigul. ... Appellants
Vs.
Pavathal Spinning Mills (P) Ltd.,
HT SC No.168,
Koluman Road,
Neikkarapatti - 624 615,
Palani Taluk, Dindigul District,
represented by its Manager,
C.Santhosh Kumar. ... Respondent
W.A.(MD)No.410 of 2012
1.Tamil Nadu Electricity Board,
Represented by its Chairman,
800, Anna Salai, Chennai - 600 002.
2.The Superintending Engineer,
Dindigul Electricity Distribution Circle,
Tamil Nadu Electricity Board,
Dindigul. ... Appellants
Vs.
Eveready Spinning Mills (P) Ltd.,
HT SC No.104,
Koluman Road,
Kottaiyur Agaram Village,
Thadicombu, Dindigul District,
represented by its General Manager,
G.T.Sambandam. ... Respondent
W.A.(MD)No.411 of 2012
1.The Chairman,
Tamil Nadu Generation and
Distribution Corporation Limited,
144, Anna Salai, Chennai - 600 002.
2.The Superintending Engineer,
Madurai Metro Electricity Distribution Circle,
TANGEDCO, Madurai. ... Appellants
Vs.
M/s.Sri Sathu Spinning Mills (P) Ltd.,
Represented by its Authorized Signatory,
G.Munisamy, HT SC No.60,
335/1, Bye Pass Road,
Avaniapuram, Madurai - 12. ... Respondent
W.A.(MD)No.412 of 2012
1.The Chairman,
Tamil Nadu Generation and
Distribution Corporation Limited,
144, Anna Salai, Chennai - 600 002.
2.The Superintending Engineer,
Sivangai Electricity Distribution Circle,
TANGEDCO, Sivangani. ... Appellants
Vs.
M/s.Sree Jeya Soundharam Textile Mills
Private Limited,
Represented by its Managing Director,
D.Kothai, HT SC No.95,
Perungudi Village, Madagupatti - 623 553,
Sivagangai District. ... Respondent
PRAYER
Writ Appeal (MD)No.407 of 2012 filed under Clause 15 of the
Letters Patent against the order dated 16.5.2012 passed in W.P.(MD)No.6798 of
2012 on the file of this Court.
Writ Appeal (MD)No.408 of 2012 filed under Clause 15 of the Letters Patent
against the order dated 16.5.2012 passed in W.P.(MD)No.6799 of 2012 on the file
of this Court.
Writ Appeal (MD)No.409 of 2012 filed under Clause 15 of the Letters Patent
against the order dated 16.5.2012 passed in W.P.(MD)No.6800 of 2012 on the file
of this Court.
Writ Appeal (MD)No.410 of 2012 filed under Clause 15 of the Letters Patent
against the order dated 16.5.2012 passed in W.P.(MD)No.6801 of 2012 on the file
of this Court.
Writ Appeal (MD)No.411 of 2012 filed under Clause 15 of the Letters Patent
against the order dated 23.5.2012 passed in W.P.(MD)No.6973 of 2012 on the file
of this Court.
Writ Appeal (MD)No.412 of 2012 filed under Clause 15 of the Letters Patent
against the order dated 23.5.2012 passed in W.P.(MD)No.6974 of 2012 on the file
of this Court.
!For Appellants in all
the above W.A(s). ... Mrs.Srimathy
for M/s.S.M.S.Johnny Basha
^For Respondents in
W.A.(MD)Nos.407 to
410 of 2012 ... Mr.R.S.Pandiyaraj
For Respondents in
W.A.(MD)Nos.411 and
412 of 2012 ... Mr.S.Karunakaran
:COMMON JUDGMENT
R.BANUMATHI, J Being aggrieved by the orders dated 16.5.2012 and 23.5.2012 passed in W.P.(MD)Nos.6798, 6799, 6800, 6801, 6973 and 6974 of 2012, permitting the respondent(s)/writ petitioner(s) to pay the Additional Security Deposit in twelve equal monthly instalments along with regular current consumption charges, the Tamil Nadu Electricity Board have preferred these Appeals.
2. Respondent(s)/Writ Petitioner(s) are manufacturing yarn and are having HT Service Connection. The respondent(s)/writ petitioner(s) have already paid Security Deposit. As per Regulation 5(5)(ii)(a) of the Tamil Nadu Electricity Supply Code, 2004, the Current Consumption Deposit should be two times of the monthly average of the electricity charges for the preceding twelve months prior to April. On a review adequacy of the current consumption deposit at the credit of HT supply to the respondent(s), as per Regulation 5(5)(ii)(a) of the Tamil Nadu Electricity Supply Code, the appellant called upon the respondent(s) to pay additional current consumption deposit in one lumpsum on or before 17.5.2012. Additional Current Consumption Deposit to be paid by the respondent(s) is as hereunder:
Sl HT Name of the Mill Amount to be No SC deposited No Rs.
1 177 M/s.Mani Spinning Mill (P) Ltd 68,15,193/- 2 282 M/s.Mani Spinning Mill (P) Ltd 64,94,404/- 3 168 M/s.Pavathal Spinning Mill (P) Ltd 24,76,781/- 4 104 M/s.Eveready Spinning Mill (P) Ltd 34,12,194/- 5 60 M/s.Sathu Spinning Mill (P) Ltd 27,66,968/- 6 95 M/s.Sree Jayasoundharam Textile 13,92,182/-
Mills (P) Ltd
3. Respondent(s) have filed individual Writ Petitions seeking Writ of Mandamus directing the Tamil Nadu Electricity Board to permit them to pay the Additional Current Consumption Deposit in twelve equal monthly instalments. Considering the nature of the amount sought for to be paid, by the orders dated 16.5.2012 and 23.5.2012, the learned single Judge directed the respondent(s) to pay the Additional Security Deposit in twelve equal monthly instalments along with current consumption charges and further directed that the first installment shall commence on or before 21.5.2012 and subsequent instalments shall be paid on or before 10th of every succeeding month and in the event of failure to pay even one installment within the time, the entire balance amount shall become payable.
4. Challenging the order of the Writ Court, Tamilnadu Electricity Board have preferred these Writ Appeals contending that the impugned order passed is totally repugnant to Regulation 5(5)(ii)(a) of the Tamil Nadu Electricity Supply Code and that if the respondents are permitted to pay the Additional Security Deposit in 12 instalments, it will defeat the provisions since the Additional Security Deposit is to be reviewed every year and that is after every 12 months.
5. Learned counsel for the appellants, Ms.Srimathy, contended that the writ Court ought to have taken note of the amendment which was introduced by the Tamil Nadu Electricity Regulation Commission in Regulation 5(5)(iv) of the Tamil Nadu Electricity Supply Code as per which, the Additional Security Deposit is payable in three equal instalments and while the order of the learned single Judge granting relief is against the express statutory provisions and is liable to be set aside.
6. Learned counsel for the the respondent(s)/writ petitioner(s) would submit that since the Additional Security Deposit/CCD demanded is very high, considering the amount involved Writ Court rightly permitted the the respondent(s)/writ petitioner(s) to pay the amount in twelve equal instalments. It is further submitted that the the respondent(s)/writ petitioner(s) have already paid three instalments and that they may be permitted to pay the remaining instalments.
7. We have considered the submissions and also the provisions of Electricity Supply Code 2004. As per Regulation 5(5)(ii) of the Tamil Nadu Electricity Supply Code, the adequacy of security deposit shall be based on the periodicity of billing for the respective category. As per Regulation 5(5)(ii)(a), for the categories of consumer under monthly billing, the security deposit is equivalent to two times of the monthly average of the electricity charges for the preceding twelve months prior to April. As per Regulation 5(5)(iv) as existed from 1.19.2004, "(iv) If available deposit is less than the revised Security Deposit, the balance shall be collected as Additional Security deposit either through a separate notice or by a distinct entry in the consumer meter card for LT Services. Thirty days notice period shall be allowed for the payment. If the payment is not received within the above period of thirty days, the service is liable for disconnection."
The above provision was substituted vide Notification No.TNERC/SC/7-20 dt.30.6.2010. Amended Regulation 5(5)(iv) reads as under:-
" If available deposit is less than the revised Security Deposit, the balance shall be collected as Additional Security Deposit. Intimation of such Additional Security Deposit shall be through a separate notice in the case of IIT services and by a distinct entry in the consumer meter card or separate notice in the case of LT services. Thirty days notice period shall be allowed for the payment. However, on request by consumers, the Licence is permitted to collect such Additional Security Deposit in three instalments commensurate with the billing cycle."
Thus, as per the amended provision, Additional Security Deposit should be collected in three instalments commensurate with billing cycle. When the Electricity Supply Code stipulates the appellants to pay Additional Security Deposit in three instalments, the Writ Court was not right in granting relief against the right in fixing twelve equal monthly instalments and such direction is in violation of the express statutory provisions.
8. It is to be pointed out that Regulation (5)(5)(iv) of the Tamil Nadu Electricity Supply Code forms the term of contract and the respondent(s) is governed by the same, the purpose of adequacy of the current consumption deposit is re-viewable once in 12 months. The purpose of the review and obtaining additional Security Deposit is to avoid any loss due to default in payment to current Consumption Charges. When the adequacy of the current consumption deposit is reviewable once in 12 months, permitting the the respondent(s)/writ petitioner(s) to pay additional Security Deposit in twelve instalments will defeat the very provision since the Additional Security Deposit is to be reviewed every year that is after every 12 months. The direction issued by the Writ Court is against the express statutory provisions of the Tamil Nadu Electricity Supply Code and the same cannot be sustained and is liable to be set aside.
9. It was stated that the respondent(s)/writ petitioner(s) have paid three instalments as per the order of the Writ Court and the remaining amount is payable in three equal instalments commencing from August, 2012. So far as the remaining amount, the first installment is payable on or before 10th of August, 2012, the second installment shall be payable on or before 10th September, 2012 and the third installment is payable on or before 10th October,2012. Failure to pay any one of the instalments, it is open to the appellant Electricity Board to proceed against the the respondent(s)/writ petitioner(s) in accordance with law. Accordingly, the order of the Writ Court is modified and the Writ Appeals are partly allowed. No costs. Connected Miscellaneous Petitions are closed.
asvm To
1.The Chairman, Tamil Nadu Electricity Board, 800, Anna Salai, Chennai - 600 002.
2.The Superintending Engineer, Dindigul Electricity Distribution Circle, Tamil Nadu Electricity Board, Dindigul.