Telangana High Court
M/S. Zuari Cement Limited. vs Telangana State Southern Power ... on 3 March, 2025
Author: Surepalli Nanda
Bench: Surepalli Nanda
HON'BLE MRS JUSTICE SUREPALLI NANDA
WRIT PETITION No.6339 of 2025
ORDER:
Heard Sri Deepak Chowdary, learned counsel appearing on behalf of petitioner and Sri N. Sreedhar Reddy, learned Standing Counsel for TGSPDCL, appearing on behalf of respondent Nos. 1 and 2.
2. The petitioner approached the Court seeking prayer as under:
"...to pass an order or orders or writ or direction more particularly one in the nature of Writ of Mandamus declaring the action of Respondents in issuing demands for payment of Cross Subsidy Surcharge ("CSS") for the FY 2005-06 to 2014-15 vide Lr.No. SE/OP/SRPT/SAO/JAO/HT/ D.No.243/24, dt. 06.02.2025, issued by the 2nd Respondent, purported to be based on the Tariff Order dt. 30.08.2024 issued by the Telangana Electricity Regulatory Commission determining the CSS for FY 2005-06 to 2014- 15 as arbitrary, illegal, contrary to the Judgment dt. 19.12.2023 of this Honble Court in W.P. No. 14918 of 2006 and batch, provisions of the Electricity Act, 2003, besides being violative of the petitioners' rights guaranteed under Article 14, 19 (1) (g) of the Constitution of India and consequently set aside the same and pass". 2
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3. The case of the petitioner, in brief, is that the petitioner company is availing HT power to its company viz., M/s. Zuari Cement Limited, sitapuram, Dondapdu Village, Chintalapalem Mandal, Suryapet District and entered into an Agreement with the Contracted Maximum Demand (CMD) of 5100 KV vide HT Service Connection No. SPT-206 (previously NLG-206). The petitioner company was purchasing power from the generators namely M/s. R.V.K. energy Ltd., and M/s. Rain Calcining Limited for an uninterrupted power supply for its in house requirement. The petitioner's generators had been granted permission by State Government of Andhra Pradesh under Section 43 (A) (1) (C) of the Electricity Supply Act, 1948 and is squarely covered under the Electricity (Removal of Difficulties) Second Order, 2005. Therefore, the petitioner is entitled to exemption from the payment of Cross Subsidy Surcharge (CSS). Following the issuance of the Common Order by the learned TGERC, determining the CSS for Financial Years 2005-06 to 2014-15, the 2nd respondent issued a demand notice vide Lr.No. SE/OP/SRPT/SAO/JAO/HT/ D. No. 243/24, dated 06.02.2025. The demand notice sought payment of Rs.9,25,07,670/- (Rupees Nine Crores Twenty Five Lakhs Seven Thousand Six Hundred and 3 SN, J WP_6339_2025 Seventy only) as CSS for the period from April, 2005 to March, 2015 with a clear stipulation that failing to do so would result in the surcharges being raised as per existing rules without further notice and service would be disconnected. It is further the case of the petitioner that the impugned demand raised by the respondents is a clear violation of Electricity (Removal of Difficulties) Second Order, 2005 and a direct contravention of the orders passed by this Court in W.P. No. 14918 of 2006 and batch and hence liable to be set aside. Therefore, the petitioner approached the Court by filing the present writ petition.
4. It is the specific case of the petitioner that in pursuance to the impugned notice vide Lr.No. SE/OP/SRPT/SAO/JAO/HT/ D.No.243/24, dated 06.02.2025 issued by the 2nd respondent the petitioner had submitted a detailed representation dated 15.02.2025 addressed to the 2nd respondent herein requesting the 2nd respondent to withdraw the said demand notice explaining the reasons in detail specifically contending that the said demand notice is contrary to the Judgment of the Apex Court dated 10.09.2024 passed in SLP (C) No.25649 of 2023 dated 19.12.2023 challenging the Common Judgment passed in W.P. No.8252 of 2008 and W.P.No.14918 of 2006 and batch. 4
SN, J WP_6339_2025 It is further the case of the petitioner that the 2nd respondent without considering the detailed explanation dated 15.02.2023 submitted to the 2nd respondent herein in pursuance to the demand notice dated 06.02.2025 issued to the petitioner by the 2nd respondent herein is proceeding for initiating coercive steps against the petitioner including disconnection of power supply to the petitioner's company i.z. M/s. Zuari Cement Limited, Sitapuram, Dondapadu Village, Chintalapalem Mandal, Suryapet District. Aggrieved by the said action of the Respondents, the present writ petition is filed.
5. The learned counsel appearing on behalf of the petitioner submits that the writ petition could be disposed of directing the 2nd respondent herein to consider the grievance of the petitioner as put forth in the petitioner's representation dated 15.02.2025 seeking withdrawal of the impugned demand notice dated 06.02.2025 issued to the petitioner by the 2nd respondent herein within a reasonable period.
6. The learned Standing Counsel appearing on behalf of respondents does not dispute the said submission made by the learned counsel appearing on behalf of the petitioner. 5
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7. Taking into consideration :
(a) The facts and circumstances of the case,
(b) The submissions made by the learned counsel appearing on behalf of the petitioner and the learned Standing Counsel appearing on behalf of respondents,
(c) The contents of the petitioner's detailed representation dated 15.02.2025 addressed to the 2nd respondent herein seeking withdrawal of the demand notices dated 06.02.2025 issued to the petitioner by the 2nd respondent herein explaining the reasons for the same,
(d) The fact that the said representation of the petitioner dated 15.02.2025 had not been considered by the 2nd respondent as on date, The writ petition is disposed of directing the 2nd respondent to consider the grievance of the petitioner as put forth in the petitioner's representation dated 15.02.2025 addressed to the 2nd respondent herein seeking withdrawal of the demand notice dated 06.02.2025 issued to the petitioner by the 2nd respondent herein, in accordance to law, in conformity with principles 6 SN, J WP_6339_2025 of natural justice by giving an opportunity of personal hearing to the petitioner and pass appropriate orders within a period of two (2) weeks from the date of receipt of a copy of this order.
Till the above exercise is initiated and concluded by passing of appropriate orders by the 2nd respondent duly considering the detailed representation dated 15.02.2025 as per the directions as indicated above, within the time period as stipulated as above, the respondents are directed not to take any coercive steps including that of disconnection of power supply pursuant to the demand notice dated 06.02.2025 issued to the petitioner by the 2nd respondent herein. There shall be no order as to costs.
As a sequel, the miscellaneous petitions, if any pending, in the Writ Petition shall also stand closed.
__________________________ MRS JUSTICE SUREPALLI NANDA Date: 03.03.2025 Skj