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Madras High Court

M/S. Empee Sugars And Chemicals Ltd vs Tamil Nadu Generation And on 22 September, 2022

Author: R.Vijayakumar

Bench: R.Vijayakumar

                                                                          W.P(MD).No.20711 of 2013


                          BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                                 DATED : 22.09.2022

                                                       CORAM:

                                  THE HONOURABLE MR.JUSTICE R.VIJAYAKUMAR

                                             W.P.(MD)No.20711 of 2013
                                                      and
                                             M.P(MD)Nos. 1 to 3 of 2013

                     M/s. Empee Sugars and Chemicals Ltd.,
                     Alangulam Road,
                     Edaikal Post,
                     Ambasamudram – 627 602
                     Tirunelveli District.
                     Represented by its Deputy General Manager
                     (Power Plant) Mr.M.Elangovan                             ... Petitioner
                                                       -vs-

                     1. Tamil Nadu Generation and
                        Distribution Corporation Limited,
                        TANGEDCO,
                        Represented by its Chairman,
                        144, Anna Salai, Chennai – 600 002.

                     2. The Chief Financial Controller/ Revenue
                        TANGEDCO,
                        144, Anna Salai,
                        Chennai – 600 002.

                     3. The Superintending Engineer,
                        TANGEDCO,
                        Tirunelveli Electricity Distribution Circle,
                        Tirunelveli.

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https://www.mhc.tn.gov.in/judis
                                                                               W.P(MD).No.20711 of 2013



                     4. Tamil Nadu Electricity Regulatory Commission,
                        No.19A, Rukmini Lakshmipathy Salai,
                        Egmore, Chennai – 600 008.                               .... Respondents

                     PRAYER: Writ Petition is filed under Article 226 of the Constitution of
                     India for issuance of a Writ of Certiorarified Mandamus, calling for the
                     records of the second respondent in the issuance of the impugned
                     instruction in Letter No. /CFC/FC/DFC/AAO.HT/AS.3/D.No.126/13, dated
                     07.09.2013 in respect of billing start-up power under a two part tariff system
                     and quash the same and to consequently direct the respondents herein to
                     forbear from demanding and collecting separate demand charges and energy
                     charges under two part tariff system as tariff for start-up power and to
                     charge only energy charges and to refund the amount of Rs.50,84,550/- that
                     has already been paid by the petitioner.


                                       For Petitioner   : Mr.N.Sudalai Muthu
                                       For Respondents : Mr.S.Deenadhayalan
                                                         Standing Counsel.

                                                         ORDER

The present Writ Petition has been filed challenging the working instructions issued by the second respondent herein, on 07.09.2013. The impugned order is mainly relating to the start-up power charges. The same 2/7 https://www.mhc.tn.gov.in/judis W.P(MD).No.20711 of 2013 issue was considered by this Court in a batch of writ petitions in W.P(MS) Nos.26266 of 2013 etc., dated 27.08.2021. The paragraph No.26 of the order is extracted as follows:-

“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 drawl 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 3/7 https://www.mhc.tn.gov.in/judis W.P(MD).No.20711 of 2013 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.”

2. Under the said order, this Court has transferred all the Writ Petitions to the file of the Tamil Nadu Electricity Regulatory Commission, to be considered by them, within a period of three months, after giving opportunity to the writ petitioner and other stakeholders.

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3. Hence, the learned counsel for the respondents Board also brought to the notice of this Court that he had raised written instructions received from the third respondent herein to the effect that the Writ Petition may be tagged along with other Writ Petitions already transferred to the file of TNERC, Chennai. Based upon the above said requests and the order passed by this Court in the batch of Writ Petitions, this Writ Petition is also transferred to TNERC to be tagged along with other Writ Petitions, in which, orders were passed on 27.08.2021.

4. In view of the above, this Writ Petition stands transferred to TNERC. No costs. Consequently, connected Miscellaneous Petitions are closed.




                                                                                           22 .09.2022

                     Index    : Yes / No
                     Internet : Yes / No

                     ebsi



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https://www.mhc.tn.gov.in/judis W.P(MD).No.20711 of 2013 To

1. Tamil Nadu Generation and Distribution Corporation Limited, TANGEDCO, Represented by its Chairman, 144, Anna Salai, Chennai – 600 002.

2. The Chief Financial Controller/ Revenue TANGEDCO, 144, Anna Salai, Chennai – 600 002.

3. The Superintending Engineer, TANGEDCO, Tirunelveli Electricity Distribution Circle, Tirunelveli.

4. Tamil Nadu Electricity Regulatory Commission, No.19A, Rukmini Lakshmipathy Salai, Egmore, Chennai – 600 008.

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