Madras High Court
M/S.Sri Ramalinga Mills Limited vs The State Of Tamil Nadu on 26 February, 2020
Author: Pushpa Sathyanarayana
Bench: Pushpa Sathyanarayana
W.P(MD)No.14476 of 2013 (batch)
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 26.02.2020
CORAM
THE HONOURABLE Mrs. JUSTICE PUSHPA SATHYANARAYANA
W.P.(MD)Nos.14476, 14477 of 2013, 2669, 4499, 4500 of 2014,
20499 of 2015 and 3568 of 2016
and
MP(MD)Nos.1,1, 2, 2, 3, 3 of 2013
and
M.P(MD)Nos.1, 1, 2, 2, 2, 3, 3, 3 of 2014
and
M.P(MD)Nos.2, 3 of 2015
and
W.M.P(MD)Nos.7863, 8097, 8090 of 2019
and
W.M.P(MD)Nos.3193 and 3194 of 2016
W.P.(MD)No.14476 of 2013 :
M/s.Sri Ramalinga Mills Limited.,
Represented by its Chairman T.R.Dhinakaran .. Petitioner
Vs.
1.The State of Tamil Nadu,
Represented by its Secretary to the Government,
Energy Department, Fort St. George, Chennai - 600 009.
2.Tamil Nadu Generation and Distribution,
Corporation Limited (TANGEDCO),
Represented by its Chairman and Managing Director,
144, Anna Salai, Chennai – 600 002.
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W.P(MD)No.14476 of 2013 (batch)
3.The Chief Financial Controller/Revenue,
Accounts Branch, Revenue Division,
Tamil Nadu Generation and Distribution
Corporation Limited (TANGEDCO),
144, Anna Salai, Chennai – 600 002.
4.The Superintending Engineer,
Virudhunagar Electricity Distribution Circle,
Tamil Nadu Generation and Distribution
Corporation Limited (TANGEDCO), Virudhunagar.
5.Tamil Nadu Electricity Regulatory Commission (TNERC),
Represented by its Secretary,
19-A, Rukmini Lakshmipathy Salai(Marshall's Road),
Egmore, Chennai – 600 008. .. Respondents
Prayer : Writ Petition filed under Article 226 of the Constitution of
India praying for a Writ of Certiorarified Mandamus, calling for the
records of the impugned circular issued by the third
respondent in Lr.No/CFC/FC/DFC/AAO.HT/AS.3/REV/D.No.115/13
dated 29.07.2013 quash the same and forbear the respondents
1 to 4 from in any manner levying, demanding and /or collecting
demand charges without applying Deemed Demand Concept as
envisaged in Order No.2 dated 15.05.2006 issued by the fifth
respondent from the petitioner for procuring energy from Open
Access sources including CPP and third party sources.
For Petitioner : Mr.S.Karunakar
For R-2 to R-4 : Mr.S.M.S.Johny Basha
Standing Counsel
COMMON ORDER
Since all these petitioners laid challenge to the orders of cancellation of Deemed Demand Charges passed by the respondents 2/8 http://www.judis.nic.in W.P(MD)No.14476 of 2013 (batch) in these writ petitions, they are taken up together for hearing and disposed of by means of this common order.
2. The case of the petitioner in W.P.(MD)No.14476 of 2013 is that it is a High Tension Electricity Consumer supplied by the fourth respondent. Since there were power crisis, with the permission of the fifth respondent, which is a regulatory body, the official respondents enforced restrictive supply to the HT Consumers. It is also the case of the petitioner that to meet out its need for electricity the petitioner and other similarly placed industries in the State sourced electricity power from the third party power generators within and outside the State under certain terms and conditions. However, all of a sudden, the second respondent issued the impugned letter dated 29.07.2013 withdrawing the benefit of deemed demand so far granted to the petitioner and other similar HT Consumers without the approval of the fifth respondent. Since it has a slipping effect on the cost of their production activities, the petitioner instituted this writ petition. Similar is the case of the petitioners in the other writ petitions. 3/8 http://www.judis.nic.in W.P(MD)No.14476 of 2013 (batch)
3. Heard the learned counsels for the petitioners and the learned Standing counsel appearing on behalf of the respondents.
4. The very same impugned order was quashed by a learned Single Judge of this Court in the order dated 14.09.2018 passed in a batch of writ petitions in W.P.No.5916 of 2014, etc. batch (Rasi Tex (In) P Ltd V. TANGEDCO and Others).
5. The respondents/TANGECO questioned the said order in W.A.No.2539 and 2540 of 2018 before a Division Bench of this Court. The Division Bench, after taking note of the submission of the learned Advocate General that during the pendency of the writ petitions interim stay has been granted subject to the condition that the writ petitioners pay 50% of the amount demanded within a stipulated time and also considering the objections of the learned Senior counsel and other counsels for the respondents therein, while ordering notice on 19.11.2018, passed the following interim order :
"8. Therefore, in the light of the above facts and circumstances, and reasons assigned above, this Court is of the considered view that the same arrangement shall continue till the disposal of the writ appeals for the reason that appellant in the event of success in these appeals may not be 4/8 http://www.judis.nic.in W.P(MD)No.14476 of 2013 (batch) able to recover it and there may be possibility of respondents / writ petitioners to wind up operations due to vagaries of business or other reasons. Therefore, without prejudice to the rights and contentions, the first respondents / writ petitioners shall continue to pay 50% of the demand made as per the impugned orders / demand, the subject matter of challege in the writ petitions, within a period of two weeks from the date of each demand. It is also made clear that the amount collected by virtue of the interim order in the writ petitions as well as in these writ appeals, by the appellant is also subject to the result of these writ appeals, and if the appellant fails, they are liable to refund the Deemed Demand Charges already collected from the first respondents / writ petitioners. ....."
6. The learned Standing Counsel for the respondents admitted that the said writ appeals are pending and the petitioners are similarly placed units as that of the first respondents in the writ appeals. It is also brought to the notice of this Court that in the interregnum, following the interim order passed by the Division Bench, this Court disposed of a number of writ petitions with similar directions.
7. Considering the submissions of either side and in light of the facts coupled with the interim order passed by the Division Bench, these writ petitions are disposed of with the following 5/8 http://www.judis.nic.in W.P(MD)No.14476 of 2013 (batch) directions :
(i) The petitioners are directed to pay 50% of the deemed demand charges, if not paid so far and continue to pay the same till the disposal of the writ appeal.
(ii) The petitioners are also liable to pay the balance deemed demand charges, if the writ appeal filed by the TANGEDCO is allowed.
(iii) Needless to say that the petitioners are also entitled to get similar refund, if any, if the first respondents in the writ appeals succeed, subject to the orders/observations of the Division Bench.
(iv) It is open to the petitioners to take recourse to any suitable action in the manner known to law, in the interregnum.
There shall be no order as to costs. Consequently, the connected miscellaneous petitions are closed.
26.02.2020
Index : Yes/No
Internet : Yes
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W.P(MD)No.14476 of 2013 (batch)
To
1.The Secretary to the Government ,
State of Tamil Nadu,
Energy Department, Fort St. George, Chennai - 600 009.
2.Tamil Nadu Generation and Distribution, Corporation Limited (TANGEDCO), Represented by its Chairman and Managing Director, 144, Anna Salai, Chennai – 600 002.
3.The Chief Financial Controller/Revenue, Accounts Branch, Revenue Division, Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), 144, Anna Salai, Chennai – 600 002.
4.The Superintending Engineer, Virudhunagar Electricity Distribution Circle, Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), Virudhunagar.
5.Tamil Nadu Electricity Regulatory Commission (TNERC), Represented by its Secretary, 19-A, Rukmini Lakshmipathy Salai(Marshall's Road), Egmore, Chennai – 600 008.
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