IN THE HIGH COURT OF JUDICATURE AT MADRAS
ABDUL QUDDHOSE, J.
The Ramco Cements Limited, Represented by its General Manager – Legal, T. Mathivanan - Appellant
Versus
Tamilnadu Generation and Distribution Corporation Ltd., (TANGEDCO), Represented by its Chairmen Cum Managing Director & Others - Respondent
W.P. No. 15965 of 2022
Decided On : 24-06-2022
Mandamus - Energy Purchase Agreements - Conversion to Energy Wheeling Agreements
Fact of the Case:
The petitioner sought a mandamus to allow the utility change by terminating the existing Energy Purchase Agreements and execute fresh Energy Wheeling Agreement for their own Captive Consumption.
Finding of the Court:
The court found that similar orders were passed in other writ petitions allowing conversion of Energy Purchase Agreements into Energy Wheeling Agreements under the Group Captive/Third Party Scheme. The court held that the directions issued in those cases would hold good for the petitioner as well.
Issues: The main issue was the conversion of Energy Purchase Agreements to Energy Wheeling Agreements for captive consumption due to defaulted payments by the respondents.
Ratio Decidendi: The court relied on previous similar cases where directions were issued to permit the petitioner to switch over to their own captive consumption and settle the respective dues along with interest.
Final Decision: The court disposed of the writ petition in favor of the petitioner, citing that the directions issued in previous similar cases would hold good for the petitioner as well.
JUDGMENT
(Prayer: Writ petition filed under Article 226 of the Constitution of India for Writ of Mandamus for directing the 1st, 2nd and 3rd respondents to allow the utility change to the petitioner by terminating the existing Energy Purchase Agreements dated (EPAs) dated 27.03.2014 respectively and execute fresh Energy Wheeling Agreement for their own Captive Consumption at their HTSC No.069094400069 of the energy generated in Petitioner's WF HTSC No.039214340736 (Old No.U1310), 039214340737 (Old No.U1311), 039214340835 (Old No.U1459, 039214340836 (Old No.U1460 and 039214340837 (Old No.U1464) as per the Common Order of this Court dated 30.08.2019 which was upheld by the Division Bench of this Court dated 18.02.2020 and by the Hon'ble Supreme Court of India dated 24.09.2020 and make payment of the outstanding dues payable to the petitioner towards the wind energy sold by the petitioner till the date of the termination of the EPA dated 27.03.2014 as per their respective invoices along with interest at 1% per month for any delay in payments.)
1. This writ petition has been filed for a mandamus seeking for a direction to the first, second and third respondents to allow the utility change for the petitioner by terminating the existing Energy Purchase Agreements (EPAs) dated 27.03.2014 respectively and execute fresh Energy Wheeling Agreement for their own Captive Consumption at their HTSC No.069094400069 of the energy generated in Petitioner's WF HTSC No.039214340736 (Old No.U1310), 039214340737 (Old No.U1311), 039214340835 (Old No.U1459, 039214340836 (Old No.U1460 and 039214340837 (Old No.U1464) as per the Common Order of this Court dated 30.08.2019 passed in W.P.No.5196 of 2019 etc., batch which was upheld by the Hon'ble First Bench of this Court dated 18.02.2020 in W.A.No.4189 of 2019 etc., batch and thereafter by the Hon'ble Supreme Court by its order dated 24.09.2020.
2. Mr.C.Jai Venkatesh, learned Standing Counsel accepts notice on behalf of the respondents. By consent of both parties, this writ petition is taken up for final disposal in the admission stage itself.
3. Heard Mr.S.Pandiyaraj, learned counsel for the petitioner and Mr.C.Jai Venkatesh, learned Standing Counsel for the respondents.
4. The petitioner had earlier entered into a Energy Purchase Agreement dated 27.03.2014 for their WEG. Under the Energy Purchase Agreement, payments have not been made by the respondents. The petitioner seeks for conversion of the Energy Purchase Agreements to Energy Wheeling Agreements under their own captive consumption. In similar circumstances, in respect of other companies who had also entered into Energy Purchase Agreements and payments were defaulted, writ petitions were filed and they were allowed for converting Energy Purchase Agreement into Energy Wheeling Agreement under the Group Captive/Third Party Scheme. The following are the writ petitions in which similar orders were passed as the one sought for by the petitioner in this writ petition:
(a) Order dated 26.10.2021 passed in W.P.No.22695 of 2021 (Orange Valley Windmills Pvt. Ltd., vs. Tamil Nadu Generation and Distribution Corporation Ltd and three others)
(b) Order dated 20.01.2022 passed in W.P.Nos.519, 523 & 524 of 2022 (Pioneer NF Forging India Pvt., Ltd., vs. Tamil Nadu Generation and Distribution Corporation Ltd and others)
(c) Order dated 30.08.2019 passed in batch of writ petitions, namely W.P.No.5196 of 2018 etc batch.
6. In all the aforementioned writ petitions, almost identical directions were issued by the respondents which are as follows:
(a) The respondent/TANGEDCO is directed to permit the petitioner to switch over to their own captive consumption/group captive consumption/third party sale, as the case may be, as per the request made by the petitioner;
(b) the respondent/TANGEDCO are directed to settle the respective dues to the petitioner as per their respective invoices raised by them, along with interest as per Clause 6(b) within a period of two
The main legal point established is that in cases of defaulted payments under Energy Purchase Agreements, the court may allow conversion to Energy Wheeling Agreements for captive consumption under th....
The court's decision was influenced by the principle of consistency in applying similar directions to cases with comparable circumstances.
The court's decision was influenced by the principle of allowing conversion from Energy Purchase Agreements to Energy Wheeling Agreements under third party sale in cases of non-payment.
Wind energy generators entitled to terminate EPA and migrate to EWA upon discom payment defaults, as per prior binding precedents.
Where a judicial forum has set aside specific administrative proceedings in settled precedents confirmed by higher courts, authorities are precluded from re-issuing identical orders. Such repetitive ....
The court affirmed the right to convert an Energy Purchase Agreement to an Energy Wheeling Agreement for captive consumption, emphasizing the binding nature of prior judicial decisions.
Wind energy generators entitled to migrate from EPA to EWA under Electricity Act, 2003; prior judgments quashing blocking proceedings binding.
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