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2006 Supreme(Mad) 3066

High Court of Judicature at Madras
THE HONOURABLE CHIEF JUSTICE MR. A.P.SHAH & THE HONOURABLE MR. JUSTICE K.CHANDRU
BMF Beltings Limited - Appellant
Versus
The Chairman Tamil Nadu Electricity Board & Others - Respondents
W.P.Nos.26675 to 26677, 28337, 27044, 29318 and 29319, 29549, 30069 to 30071, 30408, 30725 and 30726, 31070, 31118, 31382 to 31384, 31549, 31962, 32655, 32700, 29660 to 29662, 33189 to 33193 of 2004
Decided On : 14 November 2006

Appearing Advocates:For the Petitioner:Palani Selvaraj, Advocate. For the Respondent: P.S. Raman, SC for R. Subbiah, Spl. G.P.

The main legal point established in the judgment is that the responsibility for installing meters to measure energy generated during peak hours lies with the Wind Mill owners, and they cannot claim a refund for electricity already generated and consumed.

Headnote:

Electricity Charges - Peak Hour Charges - G.O.Ms.No.17, Energy Department dated 14.02.1997 - Summary of Acts and Sections: G.O.Ms.No.17, Energy Department dated 14.02.1997 - The judgment discusses the legality of peak hour charges imposed on Wind Mill owners by the Tamil Nadu Electricity Board. It refers to the G.O.Ms.No.17, Energy Department dated 14.02.1997, which provided for peak hour charges for High Tension Industrial Consumers. The court's decision is influenced by the interpretation of this government order and its implications on the rights of Wind Mill owners.

Fact of the Case:

The petitioners, including Wind Mill owners, challenged the levy, demand, and collection of peak hour charges by the Tamil Nadu Electricity Board. They argued that the charges were arbitrary and unconstitutional, as they were unable to install meters or program the existing meters in their Wind Mills to record energy generated during peak hours.

Finding of the Court:

The court found that the Wind Mill owners were responsible for installing meters to measure energy generated during peak hours. It held that the petitioners could not claim a refund for electricity already generated and consumed, but if they installed devices to measure peak hour energy, they should not be charged additional duty for its use.

Issues: The main issue was the legality of peak hour charges and the responsibility for installing meters to measure energy generated during peak hours.

Ratio Decidendi: The court's decision was based on the principle that the Wind Mill owners were responsible for installing devices to measure energy generated during peak hours. It also emphasized that the petitioners could not claim a refund for electricity already generated and consumed.

Final Decision: The writ petitions were dismissed, and the court directed the respondent Board to supply a statement of account to each petitioner showing the arrears of payment towards peak hour charges. The petitioners were given four weeks to make the payment.

Judgment :-

(Prayer: Petition filed under Article 226 of the Constitution of India praying for issuance of writ of Declaration for the reasons as stated therein.)

Common Order:

K. Chandru, J.

W.P.No.26675 of 2004 is taken up as a representative case so as to set out the facts of the issues involved in the entire batch of cases listed before us. The prayer in all the writ petitions is almost identical and the relief claimed in this writ petition is extracted below:

"Petition to issue a writ of Declaration declaring that the levy, demand and collection of peak hour charges by the respondents at 0.70 paise extra (20% extra) from the petitioner on the total consumption of electricity in their industries/Mills/Factories without fixing a meter or programme the existing meter in their wind mills for taking in to consideration to set off the electricity generated or produced through their wind mills against consumption during the peak hour as unconstitutional, illegal and null and void and direct the respondents to refund to the petitioner the total amount collected illegally as peak hour charges from the petitioner for their own generated electricity through Wind Mills during peak hours till date."

2. In all these cases, the petitioners are manufacturers and are consuming High Tension energy from the respondent Tamil Nadu Electricity Board (for short, 'Board'). In W.P.No.23354 of 2004, the petitioner is an Association, which has filed the writ petition describing itself as Indian Wind Power Association (for short, 'Association'). It is an Association of companies and individuals, who have set up the Wind Mill Farm at various places in the State of Tamil Nadu and are producing electrical energy through Wind Mills and they are supplied electricity by the Board and they have a contractual agreement with the Board. The list of members of the Association has been given by them in the typed set of papers filed by them in W.P.No.23354 of 2004 and as many as 396 names of industries have been given as members of that Association and it also claims to be the representative body of all the industries, which have established Wind Mill Farm in the State of Tamil Nadu.

3. It is the case of the writ petitioners that as a consumer of electricity under the respondent Board, they are paying huge sum of money every month towards the electricity tariff and they have also deposited amount as security deposit. Since all of them have established Wind Mills and are producing power at various places, they are utilising the same for their own consumption in the industries and wherever they have not been utilised, it is given to the Board and the electricity generated is transferred into the grid established by the respondent Board. The surplus electricity generated in a month are kept in banking or reserve for being continued in the succeeding month with the permission of the respondents. While they are transferring the surplus energy to the grid established by the Board, they are also paying electricity charges as per the tariff fixed by the Government. By G.O.Ms.No.17, Energy Department dated 14.02.1997, tariffs were revised and subsequently, further revision was made by G.O.Ms.No.95, Energy Department dated 28.11.2001. Under the earlier G.O.Ms.No.17, clause (d) provided for peak hour charges, which are as follows:

“(d) for the High Tension Industrial Consumers, Time of the Day meter shall be provided. On installation of Time of the Day meters, the High Tension Industrial Consumers shall be billed at 20% extra on the energy charges for the energy recorded during peak hours. The duration of peak load hours shall be as under:-

(1) 6.00 a.m. to 9.00 a.m.

(2) 6.00 p.m. to 9.00 p.m.”

4. According to the petitioners, the extra tariff levied for peak hour consumption is arbitrary and it does not have any legal sanction and the said additional charge was challenged before this Court in various writ petitions, which were disposed of by a learned single Judge of this Court b



















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