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2022 Supreme(Mad) 2314

IN THE HIGH COURT OF JUDICATURE AT MADRAS
MOHAMMED SHAFFIQ, J.
M.R. Krishnamurthy Co-op Sugar Mills Limited, Rep by its Administrator, Cuddalore - Appellant
Versus
Tamil Nadu Generation and Distribution Corporation Limited, Represented by its Chairman, Chennai & Others - Respondent
W.P. No. 6560 of 2015 & M.P. Nos. 3 & 4 of 2015
Decided On : 29-06-2022

Advocates appeared:
For the Petitioner:Simran Srinivasan, Rahul Balaji, Advocates. For the Respondents:R1 to R4, L. Jai Venkatesh, Advocate.

The court emphasized the importance of adherence to best practices in line with the Electricity Act, 2003 and directed the TNERC to pass final orders within a strict timeline, ensuring stakeholder input.

Headnote:

Electricity Act - Refund of start-up power charges - S.45(2)(b), S.62(6) - [S.45(2)(b), S.62(6)]

Fact of the Case:

The writ petition sought refund of start-up power charges collected from the petitioner and direction to collect payment for drawal of power in accordance with the PPA and applicable Tariff Orders.

Finding of the Court:

The court remanded the case back to the TNERC, allowing the petitioner to make submissions in the pending proceedings before the TNERC.

Issues: Refund of start-up power charges, collection of payment for drawal of power, pending proceedings before TNERC

Ratio Decidendi: The court emphasized the need for TANGEDCO to follow best practices in line with the Electricity Act, 2003 and directed the TNERC to pass final orders within a strict timeline, allowing stakeholders to give their inputs.

Final Decision: The writ petition was disposed of with directions to remand the case back to the TNERC, and the connected miscellaneous petitions were closed. No costs were awarded.

JUDGMENT

(Prayer: Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Certiorarified Mandamus calling for the records of the second Respondent in the impugned instruction the Second Respondent in Letter No./CFC/FC/DFC/AAO.HT/AS.3/D.No.126/13 dated 07.09.2013 and the consequent demand notices received from the 4th Respondent in Lr.No. SE/CEDC/CUD/DFC/AO/Rev/RCS/AS/F. Tariff/ 2013 dated 25.10.2013 and to consequently direct refund of the sum of Rs.25,01,105/- collected towards start-up power charges from the petitioner together with interest at the same rate charged by the Respondents towards Belated Payment surcharge and quash the same and to consequently direct the Respondents to collect payment for drawal of power during season and off-season in terms of the PPA and applicable Tariff Orders or in the alternative to collect payment for drawal of power under HT I A both during season and off-season and pass orders.)

1. This writ petition is filed calling for the records of the 2nd Respondent in Letter No./CFC/FC/DFC/AAO.HT/AS.3/D.No.126/13 dated 07.09.2013 and the consequent demand notices received from the 4th Respondent in Lr.No. SE/CEDC/CUD/DFc/AO/Rev/RCS/AS/F. Tariff/ 2013 dated 25.10.2013 and to consequently direct refund of the sum of Rs.25,01,105/- collected towards start-up power charges from the petitioner together with interest at the same rate charged by the Respondents towards belated Payment of surcharge and quash the same and to consequently direct the Respondents to collect payment for drawal of power during season and off-season in terms of the PPA and applicable Tariff Orders or in the alternative to collect payment for drawal of power under HT I A both during season and off-season and pass orders.

2. It is submitted by the learned counsel for the Petitioner as well as the Respondents that this Court in a Batch of matters in W.P.Nos.26266,26553 etc., dated 27.08.2021, on the very same issue had directed the TNERC to pass final orders.

3. It is also submitted by both the counsels that similar orders can be passed in this writ petition. The relevant portions of the said order is extracted below:

“25....... this court will now proceed to set out certain best practices in line with the spirit behind the Electricity Act, 2003 and this court expects TANGEDCO to scrupulously follow the same in future and avoid unnecessary litigations and consequent loss of revenue.

I. TANGEDCO should establish clear policies for immediate implementation of orders issued by the TNERC and the Implementation should commence immediately after the tariff orders are issued.

II. Such implementation should take place by way of appropriate Implementation Circulars for adherence by the jurisdictional officers and the consumers/public.

III. Prior to issuance of such implementation Circulars, the draft should be placed before the TNERC for approval and on its website for any public comments to be provided directly to the TNERC.

IV. The TNERC shall within a strict timeline, approve such circulars with such modifications or changes as it deems fit after considering all aspects/inputs.

V. The approval of the implementation Circular in as much as it is done on the administrative and regulatory side by the TNERC would not by itself affect the rights of stakeholders, since it is only the orders issued under the Statute and Regulations, which would cover the field and be paramount. However, such best practice is advisable for reasons of transparency and avoiding unnecessary litigation.

VI. In terms of mandate of S.45(2)(b), the implementation circulars or instructions issued by the TANGEDCO to its field officers should mandatorily be made available on the website of the TANGEDCO and be easily accessible to all. This would ensure that all stakeholders are fully aware of the orders and the manner of their implementation.

26. The above discussion leads to the final phase of the order. This cour

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