SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2012 Supreme(Mad) 2193

High Court of Judicature at Madras
R. SUDHAKAR
M/s. Prime Gold International (P) Ltd. Represented by its Manager, C. Murugesan & Others
Versus
Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), Represented by its Chairman and Managing Director & Others
Writ Petition Nos.14257 of 2012 to 14259 of 2012 & M.P.Nos.1 to 3
Decided on: 05-06-2012

Advocates Appeared:
For the Petitioners:K. Seshadri, Advocate.
For the Respondents:Varunkumar, Advocate.

The main legal point established is the requirement for appropriate orders from the State Commission for the installation of ABT Meters, emphasizing adherence to technical specifications and the role of the Appropriate Commission in decision-making.

Headnote:

ABT Meters - Electricity Distribution - Electricity Act, 2003, Section 2(47), Section 42 - The court discussed the provisions of open access under Section 2(47) and the duties of Distribution Licensee under Section 42 of the Electricity Act, 2003. The court emphasized the requirement for ABT compliant meters and the need for appropriate orders from the State Commission for installation, highlighting the importance of adherence to technical specifications and the role of the Appropriate Commission in decision-making.

Fact of the Case:

The petitioners, companies consuming High Tension Electricity, sought to quash certain directions issued by the Distribution Licensee regarding the installation of Availability Base Tariff Meters (ABT Meters) as a pre-condition for availing the open access facility.

Finding of the Court:

The court found that the Distribution Licensee's directions, particularly clauses IX and XIII, were unreasonable and arbitrary. It emphasized the need for appropriate orders from the State Commission for the installation of ABT Meters and the importance of adherence to technical specifications.

Issues: The primary contention was the Distribution Licensee's power to impose conditions without appropriate orders from the State Commission. The petitioners objected to the lack of specification for the ABT Meters and technical parameters.

Ratio Decidendi: The court held that the Distribution Licensee must approach the State Commission for appropriate orders regarding the installation of ABT Meters and proceed based on the Commission's directions. It emphasized the need for adherence to technical specifications and the role of the Appropriate Commission in decision-making.

Final Decision: The court ordered that the Distribution Licensee shall not insist on the installation of ABT Meters as a pre-condition for availing the open access facility until the State Commission passes a final order. It directed the Commission to ensure appropriate notice and expedite the decision-making process.

Judgment :-

1. Writ Petition No.14257 of 2012 is praying to issue a Writ of Certiorari, calling for the records of the second respondent's impugned Memo.No.CE/Comml./EE/R&C/AEE/F.R&C/D.No.70-1/12 dated 12.03.2012 and the consequential letter No.SED/Gen/F.Power Cut/D 1526/2012 dated 30.03.2012 issued by the third respondent and quash the same as illegal and arbitrary.

2. Writ Petition No.14258 of 2012 is filed praying to issue a Writ of Certiorari, calling for the records of the second respondent's impugned Memo.No.CE/Comml./EE/R&C/AEE/F.R&C/D.No.70-1/12 dated 12.03.2012 and the consequential letter No.SE/CEDC/N/DFC/N/HT/A4/F.1577/D.1866/2012 dated 24.04.2012 issued by the third respondent and quash the same as illegal and arbitrary.

3. Writ Petition No.14259 of 2012 is filed praying to issue a Writ of Certiorari, calling for the records of the second respondent's impugned Memo.No.CE/Comml./EE/R&C/AEE/F.R&C/D.No.70-1/12 dated 12.03.2012 and the consequential letter No.SE/CEDC/N/DFC/N/HT/A5/F.1648/D.1865/2012 dated 24.04.2012 issued by the third respondent and quash the same as illegal and arbitrary.

4. The prayer sought for in all three writ petitions are identical. Hence, by consent, all three writ petitions are taken up together for final disposal.

5. Thiru K.Seshadri, learned counsel appears for the petitioners. Thiru Varunkumar, learned counsel appears for the respondents.

6. The three writ petitions have been filed by petitioners companies who are consumers of High Tension Electricity. They also buy power through third party source, like, windmill generators/CPP through the Open Access facility provided by the respondents.

This issue has been considered by this court in a batch of writ petitions, viz., W.P.Nos.7897 to 7901 of 2012 etc., dated 26.4.2012. Relevant portion of the common order dated 26.4.2012 reads as follows:-

“4. The batch of writ petitions have been filed by petitioners companies who are consumers of High Tension Electricity. They also buy power through third party source, like, windmill generators/CPP through the Open Access facility provided by the respondents. The open access system as defined under Section 2(47) of the Electricity Act, 2003 reads as follows:-

“(47) Open access means the non- discriminatory provision for the use of transmission lines or distribution system or associated facilities with such lines or system by any licensee or consumer or a person engaged in generation in accordance with the regulations specified by the Appropriate Commission;”

The first respondent is the Distribution Licensee. Section 42 specifies the duties of Distribution Licensee with regard to open access as follows:-

“42. (Duties of distribution Licensee and open access):-

(1) It shall be the duty of a distribution licensee to develop and maintain an efficient, coordinated and economical distribution system in his area of supply and to supply electricity in accordance with the provisions contained in this Act.

(2) The State Commission shall introduce open access in such phases and subject to such conditions, (including the cross subsidies, and other operational constraints) as may be specified within one year of the appointed date by it and in specifying the extent of open access in successive phases and in determining the charges for wheeling, it shall have due regard to all relevant factors including such cross subsidies, and other operational constraints:”

Provided that such open access shall be allowed on payment of a surcharge in addition to the charges for wheeling as may be determined by the State Commission:

Provided further that such surcharge shall be utilised to meet the requirements of current level of cross subsidy within the area of supply of the distribution licensee :

Provided also that such surcharge and cross subsidies shall be progressively reduced in the manner as may be specified by the State Commission:

Provided also that such surcharge shall not be leviable in case open access is pr









































Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top