Madras High Court
M/S.Zuri Hotels & Resorts Private ... vs Tangedco on 22 September, 2022
Author: R.Subramanian
Bench: R.Subramanian
W.P.No.23803 of 2022
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 22.09.2022
CORAM:
THE HONOURABLE MR.JUSTICE R.SUBRAMANIAN
W.P.No.23803 of 2022
and
W.M.P.No.22785 of 2022
M/s.Zuri Hotels & Resorts Private Limited,
Represented by its Authorised Signatory Ashishkumar Singh,
Regd. Office: The Zuri Varca, Goa White Sands,
Resort & Casino, Varca Beach, Varca Salcete,
Goa – 403 721. ..Petitioner
Vs.
1.TANGEDCO,
Rep. by its Chairman & Managing Director,
144, Anna Salai, Chennai – 600 002.
2.The Chief Financial Controller (Revenue)
TANGEDCO, 144, Anna Salai,
Chennai – 600 002.
3.The Chief Engineer NCES,
TANGEDCO, 144, Anna Salai,
Chennai – 600 002.
4.The Superintending Engineer,
TANGEDCO,
Tirunelveli Electricity Distribution Circle,
Tirunelveli – 627 011. ..Respondents
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W.P.No.23803 of 2022
Prayer: Writ Petition filed under Article 226 of the Constitution of India
seeking issuance of Writ of Mandamus, directing the respondent
TANGEDCO to comply with the orders and directions passed by the Tamil
Nadu Electricity Regulatory Commission, Chennai (TNERC) and release
payment amounting to Rs.34,88,074/- (Rupees Thirty Four Lakhs Eighty
Eight Thousand Seventy Four only) being the balance amount payable to the
petitioner vide order dated 25.02.2020 passed by the TNERC in
D.R.P.No.17 of 2014 along with pendente lite interest at 12% payable
thereon.
For Petitioner : Mr.Rahul Balaji
For Respondents : Mr.M.Abul Kalam, Standing Counsel
ORDER
Considering the scope of the writ petition, the writ petition itself is taken up for disposal with the consent of the learned counsel for the parties.
2. The prayer sought for in the writ petition reads as follows:
“ to direct the respondent TANGEDCO to comply with the orders and directions passed by the Tamil Nadu Electricity Regulatory Commission, Chennai (TNERC) and release payment amounting to Rs.34,88,074/- (Rupees Thirty 2/8 https://www.mhc.tn.gov.in/judis W.P.No.23803 of 2022 Four Lakhs Eighty Eight Thousand Seventy Four only) being the balance amount payable to the petitioner vide order dated 25.02.2020 passed by the TNERC in D.R.P.No.17 of 2014 along with pendente lite interest at 12% payable thereon.”
3. The only grievance of the petitioner is that the respondent having failed to comply with the orders of the TNERC which directed it to pay interest at 6% per annum for the belated payments on or before 26.04.2020 along with the usual default clause which provided that if payment is not made by the date specified, then the entire amount should be paid, i.e,. interest at 1% per month and should be directed to pay the remaining interest also.
4. The order of the TNERC dated 25.02.2020 which stems out of the agreement between the parties reads as follows:-
a. The payment of 6% interest shall be paid by TANGEDCO on all payments made belatedly till date.
b. Such payment shall be made within 60 days of filing of this affidavit before the Hon'ble TNERC.3/8
https://www.mhc.tn.gov.in/judis W.P.No.23803 of 2022 c. The Hon'ble TNERC may record such payment only on the basis of the present affidavit and this shall not be treated as a precedent for further belated payments, in respect of which interest at the rate provided for in the Tariff orders, i.e., at 1% p.m shall be paid.
d. The Court fee paid by the petitioner may be directed to be paid by TANGEDCO, in addition to such interest as payment towards costs of this DRP.
e. In the event the full payments due are not settled and paid within 60 days, the entire sums due towards interest become automatically due and payment in that regard shall be paid by TANGEDCO.
7.4. As the parties have reached a settlement out of court, the respondent shall make payment as agreed to the petitioner within a period of 60 days from the date of this order. Accordingly, the petition is disposed of.
5. The last date for payment of interest at the concessional rate, as agreed to by the parties, is 26.04.2020. However, the payment was made by the TANGEDCO only on 15.05.2020 i.e., with the delay of at least 19 days. The petitioner would therefore contend that the order of the TNERC is self- working order. Hence, the concessional rate of interest will not be applicable 4/8 https://www.mhc.tn.gov.in/judis W.P.No.23803 of 2022 and the TANGEDCO should be directed to pay interest at 12% per annum as per the tariff order, and the terms of the contract.
6. Mr.Rahul Balaji, learned counsel appearing for the petitioner would submit that once there is a delay and the time fixed by the TNERC had not been extended by the TNERC, the liability to pay the entire interest is automatic and there cannot be any discretion on that.
7. Mr.Abul kalam, learned counsel appearing for the respondents would however submit that though TANGEDCO made the cheque ready, , the same could not be despatched and in the mean time lock-down was imposed due to pandemic and even during the peak of pandemic, the TANGEDCO paid the entire amount of interest calculated at 6% . Therefore, according to the learned counsel, TANGEDCO is also entitled to indulgence on the ground of pandemic/ lock-down. No doubt, certain other averments are made in the counter affidavit, which according to Mr.Rahul Balaji are incorrect.
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8. However, considering the fact that the TANGEDCO had come forward to pay the amount at atleast 6% interest as ordered by TNERC, even during lock-down imposed because of the pandemic and the delay is only a period of 19 days, I do not think that the order of the TNERC should be enforced in its letter and spirit. The benefit of the lock-down and the pandemic should be extended to the TANGEDCO also as is done to the other citizens.
9. Hence, the writ petition fails and it is accordingly dismissed. No costs. Consequently, the connected writ miscellaneous petition is closed.
22.09.2022
dsa
Index : No
Internet : Yes
Speaking order
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W.P.No.23803 of 2022
To
1.The Chairman & Managing Director,
TANGEDCO, 144, Anna Salai,
Chennai – 600 002.
2.The Chief Financial Controller (Revenue) TANGEDCO, 144, Anna Salai, Chennai – 600 002.
3.The Chief Engineer NCES, TANGEDCO, 144, Anna Salai, Chennai – 600 002.
4.The Superintending Engineer, TANGEDCO, Tirunelveli Electricity Distribution Circle, Tirunelveli – 627 011.
7/8 https://www.mhc.tn.gov.in/judis W.P.No.23803 of 2022 R.SUBRAMANIAN, J.
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