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IN THE HIGH COURT OF JUDICATURE AT MADRAS
D.BHARATHA CHAKRAVARTHY, J.
M/s.Shambhuvengu Yarn Mills Ltd.- Appellant
Versus
The Tamilnadu Power Distribution Corporation Ltd, - Respondent
WP No. 13729 of 2025 AND WMP.No.15419 of 2025,WMP.No. 15420 of 2025
Decided on : 22-04-2025
(A) Electricity Act, 2003 - Energy Purchase Agreement - Energy Wheeling Agreement - The petitioner sought to convert an Energy Purchase Agreement into an Energy Wheeling Agreement for captive consumption of wind energy, which was denied by the respondents based on prior Board proceedings. The court found that similar proceedings had been quashed in previous cases, establishing the petitioner's right to consume energy generated for its own needs. (Paras 1, 5, 10)
(B) Legal Precedent - The court reaffirmed that once a matter has been settled in prior litigation, similar orders cannot be repeatedly issued by the Board. (Paras 8, 9)
Facts of the case:
The petitioner, having purchased a windmill, sought to migrate from selling energy to consuming it for its own use, challenging the denial of this request by the respondents based on earlier Board proceedings.
Findings of Court:
The court quashed the impugned orders and directed the conversion of the Energy Purchase Agreement to an Energy Wheeling Agreement, allowing the petitioner to consume the generated power.
Issues: The main issues were the legality of the Board's refusal to convert the agreement and the implications of previous court rulings on similar matters.
Ratio Decidendi: The court held that the petitioner has a right to utilize the energy generated for its own consumption, and reiterated that the Board cannot issue repetitive orders contrary to settled legal precedents.
Result: Writ petition allowed.
O R D E R
The writ petition is filed for a Certiorarified Mandamus calling for the records in respect of the impugned order dated 01.08.2023 and the consequential letter dated 28.02.2024 and to quash the same and consequently direct the 3rd respondent to allow the petitioner to migrate from Sale to board to own captive scheme in respect of the petitioner's Wind Energy Generation WEG No.039214340843 by converting the existing Energy purchase Agreements (EPA) dated 30.08.2024 to an Energy Wheeling Agreement (EWA) and to direct the respondents to make payment of the outstanding dues payable to the petitioner along with interest at the rate of 1% per month for any delay in payments.
2. The case of the petitioner is that the petitioner namely, M/s.Shambhuvengu Yarn Mills (P) Limited purchased the Windmill in question with from another entity known as M/s.Shambhuvengu and Co., by a sale dated 19.10.2023. Thereafter, instead of selling the power to the respondents, the petitioner made an application to captively consume the same. The respondents ought to have converted the agreement of sale into one as Wheeling agreement and ought to permit the petitioner to consume the Energy Generated by it as a Captive Consumer. However, the respondents are denying the same and the impugned orders are passed. The impugned order relies upon the Board proceedings dated 20.05.2017 & 01.08.2023. Therefore, challenging both the Board proceedings as well as the communication issued in respect of the petitioner, the petitioner has filed the writ petition.
3. The writ petition is resisted by the respondents by filing a counter affidavit.
4. It is the case of the respondents that as far as the dues in respect of the erstwhile entity concerned, the respondents are taking steps to clear the outstanding dues along with the interest at a reasonable time. As far as the present prayer to migrate is concerned, it is stated that in view of the Board proceedings, the request was not considered.
5. Mr.S.P.Parthasarathy, Learned Counsel appearing on behalf of the petitioner would submit that in respect of similarly placed persons, already when different board proceedings to the same effect were issue the same came to be challenged in a batch of writ petitions and by an order dated 30.08.2019 made in W.P.No.5196 of 2019 etc., this Court quashed the said proceedings and directed the respondents Board to convert it into Wheeling Agreement and permit own consumption. As against the same, the respondents preferred W.A.No.4189 of 2019 etc., which was again dismissed by order dated 18.02.2020. The respondents also approached the Hon'ble Supreme Court of India by way of SLP.Nos.8513 to 8518 of 2020 and by an order dated 24.09.2020, the Special Leave Petitions were also dismissed. In view thereof, once again identical impugned Board proceedings are issued and the very same ground is now raised in the present petition. When the petitioner has duly purchased the Windmill, he has a right to exploit the same as per his own need and he cannot be compelled to strick to the sale agreement itself without permitting him to use for captive generation.
6. Per contra, Mr.D.R.Arun Kumar, Learned Counsel appearing on behalf of the respondents relying upon the counter affidavit would submit that as far as the Energy Charges payable that is a different question altogether. The payment to the erstwhile M/s.Shambhuvengu and Co., is being paid in 48 equal monthly installments. When the Board has considered the issue and has reiterated the earlier rules by considering the belated payment Surcharge Rules, the impugned proceedings need not be set aside by this Court.
7. I have considered the rival submissions made on either side and perused the material records of the case.
8. It can be seen that identical board proceedings have been set aside by this Court by the order dated 30.08.2019 and the said order stood confirmed upto the Hon'ble Supreme Court of India. The only argument that is made is that the B
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.
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....
Wind energy generators entitled to terminate EPA and migrate to EWA upon discom payment defaults, as per prior binding precedents.
The court's decision was influenced by the principle of consistency in applying similar directions to cases with comparable circumstances.
Impugned board orders quashed as repetitive after prior Supreme Court confirmation; EPAs converted to EWAs for captive use.
A wind energy generator retains ownership of banked energy generated prior to the sale of the windmill, and the terms of the wheeling agreement do not preclude its use.
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