Pariyur Amman Spinning Mills (P) Ltd. vs Tamil Nadu Generation and Distribution Corporation Ltd.

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2021 Supreme(Mad) 2095

IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. ANAND VENKATESH, J.
Pariyur Amman Spinning Mills (P) Ltd. – Petitioner
Versus
Tamil Nadu Generation and Distribution Corporation Ltd. and Others – Respondents
W.P. Nos. 19703, 19704, 19705, 19713, 22929 of 2017, W.M.P. Nos. 21254, 21255, 21256, 21257, 21258, 21259, 21266, 21267, 24083, 24084 of 2017
Decided On : 20-10-2021

Advocates:
Advocate Appeared:
For the Petitioners: R.S. Pandiyaraj, R. Parthasarathy.
For the Respondents: J. Ravindaran, M. Abulkalam, L. Jai Venkatesh, M. Abdul Saleem.

Headnote:
Constitution of India, 1950 - Article 226 - Electricity Act, 2003 - Section 61, 181, 61(h), 62 and 86(1)(e) and (f) - Tariff - Rate Per Unit - Whether petitioners are entitled for tariff at rate of Rs. 7.01 per unit as per Tariff Order No. 7 of 2014 - Whether petitioners are entitled only for Rs. 5.10 per unit as per Tariff Order No. 2 of 2016 – Held, Once plant is ready and nature cooperates, energy is generated - This was perfectly understood by TANGEDCO till beginning of year 2017 and all of a sudden, they have turned around and applied concept of COD for solar power plants - The stand taken by TANGEDCO is illegal, arbitrary and it cannot stand test of law - Impugned communication issued to petitioners are hereby quashed as illegal, arbitrary and without any authority of law and there shall be a direction to respondents to strictly comply with Tariff Order No. 7 of 2014 and Tariff Order No. 4 of 2015 passed by TNERC and make payment for solar energy supplied by petitioners at rate of Rs. 7.01 per unit - If respondents have paid petitioners at rate of Rs. 5.10 per unit for solar energy supplied by petitioners, balance amount shall be paid with interest at rate of 6% per annum from date it became due and payable till date of actual payment - If respondents have committed default even insofar as payment of tariff at rate of Rs. 5.10 per unit, entire amount at rate of Rs. 7.01 per unit shall be paid with interest at rate of 6% per annum from date it became due and payable till date of actual payment - Petitions allowed.

JUDGMENT :

N. ANAND VENKATESH, J.

Prayer: W.P. No. 19703 of 2017: Writ Petitions filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorarified Mandamus, to call for the records of the 2nd respondent’s impugned communication in Letter No. CE/NCES/SE/Solar/EE/SCB/ A2/F.Solar/D.135/17 dated 18.2.2017 and the consequential impugned communication in LR. No. SE/GEDC/DFC/AS/HT/F.SOLAR/D.No. 12/2017 dated 21.4.2017 of the 4th respondent and quash the same as illegal arbitrary without the authority of law and against the TNERC’s order No. 7 of 2014 dated 12.9.2014 TNERC’s - Power Procurement from New and Renewable sources of Energy Regulations 2008 and consequently direct the 2nd and 4th respondents to strictly comply with TNERC’s Tariff Order No. 7 of 2014 dated 12.9.2014 and order No. 4 of 2015 dated 1.4.2015 in making payment for the solar energy supplied by the petitioner’s Solar Power Plant No. SPG Gobi 003 at Rs. 7.01/- unit along with interest of 12% per annum from the respective due date to the date of payment as per the EPA.

W.P. No. 19704 of 2017: Writ Petitions filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorarified Mandamus, to call for the records of the 2nd respondent’s impugned communication in Letter No. CE/NCES/SE/Solar/EE/SCB/A2/F. Solar/D.135/17 dated 18.2.2017 and the consequential impugned communication in LR. No. SE/GEDC/DFC/AS/HT/F.SOLAR/D.No. 15/2017 dated 21.4.2017 of the 4th respondent and quash the same as illegal arbitrary without the authority of law and against the TNERC’s Order No. 7 of 2014 dated 12.9.2014 TNERC’s - Power Procurement from New and Renewable sources of Energy Regulations 2008 and consequently direct the 2nd and 4th respondents to strictly comply with TNERC’s Tariff Order No. 7 of 2014 dated 12.9.2014 and Order No. 4 of 2015 dated 1.4.2015 in making payment for the solar energy supplied by the petitioner’s Solar Power Plant No. SPG Gobi 007 at Rs. 7.01/- unit along with interest of 12% per annum from the respective due date to the date of payment as per the EPA.

W.P. No. 19705 of 2017: Writ Petitions filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorarified Mandamus, to call for the records of the 2nd respondent’s impugned communication in Letter No. CE/NCES/SE/Solar/EE/SCB/A2/F. Solar/D.135/17 dated 18.2.2017 and the consequential impugned communication in LR. No. SE/GEDC/DFC/AS/HT/F.SOLAR/D.No. 13/2017 dated 21.4.2017 of the 4th respondent and quash the same as illegal arbitrary without the authority of law and against the TNERC’s order No. 7 of 2014 dated 12.9.2014 TNERC’s - Power Procurement from New and Renewable sources of Energy Regulations 2008 and consequently direct the 2nd and 4th respondents to strictly comply with TNERC’s Tariff Order No. 7 of 2014 and order No. 4 of 2015 dated 1.4.2015 in making payment for the solar energy supplied by the petitioner’s Solar Power Plant No. SPG Gobi 005 at Rs. 7.01/- unit along with interest of 12% per annum from the respective due date to the date of payment as per the EPA.

W.P. No. 19713 of 2017: Writ Petitions filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorarified Mandamus, to call for the records of the 2nd respondent’s impugned communication in Letter No. CE/NCES/SE/Solar/EE/SCB/A2/F. Solar/D.135/17 dated 18.2.2017 and the consequential impugned communication in LR. No. SE/GEDC/DFC/AS/HT/F.SOLAR/D.No. 14/2017 dated 21.4.2017 of the 4th respondent and quash the same as illegal arbitrary without the authority of law and against the TNERC’s order No. 7 of 2014 dated 12.9.2014 TNERC’s - Power Procurement from New and Renewable sources of Energy Regulations 2008 and consequently direct the 2nd and 4th respondents to strictly comply with TNERC’s Tariff Order No. 7 of 2014 dated 12.09.2014 and Order No. 4 of 2015 dated 1.4.2015 in making payment for the solar energy supplied by the petitioner’s Solar Pow

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