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2025 Supreme(Mad) 5376

IN THE HIGH COURT OF JUDICATURE AT MADRAS
G.JAYACHANDRAN, MUMMINENI SUDHEER KUMAR, JJ.
Tamil Nadu Generation and Distribution Corporation Limited – Appellant
Versus
National Oxygen Limited – Respondent
W.A. Nos. 933, 947, 2539, 2540, 515, 937, 939, 946, 950, 952, 958, 1000, 1002, 1011, 1012, 1013, 1015, 1016, 1045, 1048, 1050, 1051, 1055, 1063, 1067, 1081, 1082, 1084, 1085, 1087, 1092, 1093, 1094, 1106, 1108, 1109, 1110, 1111, 1113, 1117, 1126, 1128, 1135, 1141, 1177, 1178, 1159, 1160, 1174, 1175, 1179, 1180, 1181, 1185, 1186, 1188, 1190, 1195, 1196, 1197, 1198, 1199, 1200, 1202, 1203, 1204, 1207, 1209, 1212, 1214, 1220, 1221, 1222, 1223, 1228, 1230, 1231, 1233, 1239, 1240, 1242, 1246, 1248, 1250, 1252, 1255, 1258, 1260, 1265, 1262, 1267, 1268, 4128, 4168, 4141, 4142, 4143, 4144, 4146, 4154 of 2019 1052, 1050, 1051, 1042, 1053, 1056, 1057, 1036, 1037, 1038, 1039, 1042, 1044, 1045, 1047, 1048, 1049, 1058, 1071 of 2020, W.A. No. 947 of 2019, W.P. Nos. 6988, 7305, 7306, 7546 of 2016, 19006, 19095, 27018 of 2019, 6294, 6297 of 2020, C.M.P. (MD) Nos. 7112, 7113, 7937, 7939, 20485, 20490, 4506, 7072, 7073, 7078, 7081, 7099, 7103, 7123, 7124, 7130, 7131, 7172, 7173, 7513, 7515, 7525, 7526, 7604, 7607, 7612, 7614, 7611, 7616, 7619, 7623, 7620, 7622, 7777, 8329, 8331, 7788, 7790, 7795, 7798, 7800, 7801, 7811, 7812, 7833, 7835, 7855, 7856, 7894, 7896, 7900, 7901, 7920, 7922, 7926, 7929, 7933, 7934, 7953, 7954, 7956, 7956, 7958, 7961, 7996, 7998, 8001, 8002, 8009, 8008, 8010, 8011, 8015, 8017, 8024, 8026, 8036, 8037, 8064, 8070, 8067, 8068, 8088, 8103, 8106, 8243, 8244, 8246, 8247, 8152, 8153, 8155, 8156, 8233, 8234, 8236, 8238, 8256, 8257, 8258, 8259, 8263, 8264, 8272, 8273, 8277, 8280, 8286, 8288, 8292, 8293, 8310, 8311, 8315, 8316, 8317, 8324, 8319, 8322, 8321, 8323, 8325, 8327, 8336, 8337, 8338, 8339, 8350, 8353, 8363, 8370, 8371, 8380, 8381, 8386, 8387, 8407, 8409, 8413, 8415, 8418, 8419, 8420, 8421, 8452, 8455, 8465, 8467, 8471, 8473, 8476, 8477, 8529, 8531, 8541, 8543, 8542, 8544, 8638, 8639, 8565, 8567, 8574, 8573, 8579, 8582, 8586, 8588, 8600, 8601, 8605, 8606, 8648, 8649, 8609, 8612, 8655, 8657, 8666, 8668, 25781, 25824, 25827, 25835, 25836, 25837, 25873, 25874, 25893, 25898 of 2019 12896, 12900, 12907,12909, 12875, 12877,12887, 12910, 12916, 12918, 12919, 12921, 12927, 12930, 12931, 12952, 12955, 12956, 13036 of 2020, W.M.P. (MD) Nos. 18383, 18387, 18455, 18460, 18462, 18463, 26405, 26406, 26407 of 2019, 7403, 7404, 7410, 7411 of 2020
Decided On : 12-12-2025

Advocates Appeared:
For the Appellants : P. Wilson, Arunkumar
For the Respondents: Rahul Balaji, Richardsonwilson

The regulatory authority may revise tariffs after public hearings, and the prior benefits of deemed demand charges were legally replaced by subsequent tariff orders, negating claims of improper cancellation.

Headnote:(A) Electricity Act, 2003 - Sections 62 and 86 - Tamil Nadu Generation and Distribution Corporation Limited challenged the learned single judge's order quashing a letter concerning demand charges for High Tension Open Access Consumers - Court found that the learned judge erred in determining that the impugned letter lacked proper backing from regulatory orders, which had undergone public hearing and was properly framed under the statute. (Paras 2, 4, 20-26)

(B) Regulatory Authority - The Tamil Nadu Electricity Regulatory Commission has the authority to revise tariffs, which was observed to be exercised appropriately post-public consultations - The impugned letter was proper and was a consequence of valid regulatory orders. (Paras 20, 24, 26)

(C) Procedure - The procedure for changing demand charges must follow statutory regulations, and the earlier tariff orders had been explicitly superseded. (Paras 25, 26)

Facts of the case:
The appellants (TANGEDCO) challenged the learned Single Judge's order quashing a letter related to demand charges, arguing it was based on a misunderstanding of regulatory procedures. The respondents argued that the benefits of deemed demand charges should be maintained as per earlier orders.

Findings of Court:
The learned Single Judge's ruling was found erroneous as the charge revisions followed proper statutory procedures and public consultations.

Issues: Whether the impugned letter was valid under regulatory authority and whether the learned Single Judge misapplied statutory provisions pertaining to demand charges for HT consumers.

Ratio Decidendi: The Court held that the regulatory framework allows the commission to revise tariffs, negating claims of unlawful withdrawal of deemed demand charges; the learned single judge failed to appreciate the regulatory process leading to the letter.

Result: Appeals allowed; writ petitions dismissed.

Table of Content
1. background of the case and parties involved. (Para 1 , 2)
2. arguments of the appellants and respondents. (Para 3 , 4 , 5)
3. court's observations on regulatory authority. (Para 6 , 7 , 8)
4. overview of deemed demand charges and tariff orders. (Para 9 , 10 , 11 , 12)
5. regulatory procedures regarding tariff revisions. (Para 13 , 14)
6. discussion on billable demand replacing deemed demand. (Para 15 , 16 , 17 , 18 , 19)
7. effects of order 1/2013 on previous orders. (Para 20 , 21)
8. court's review of learned single judge's decision. (Para 22 , 23 , 24 , 25)
9. comparison with renewable energy cases. (Para 26 , 27 , 28)
10. final decision and dismissal of the writ petitions. (Para 29 , 30)

JUDGMENT :

G. JAYACHANDRAN, J.

1. The Appellants are the TANGEDCO and officials of TANGEDCO, aggrieved by a common order dated 14.09.2018 in a batch of writ petitions filed this batch of writ appeals. The High Tension Open Access Captive Power Generators/Consumers of TANGEDCO are the successful Writ Petitioners, arrayed as respondents herein. The writ petitions primarily for issuance of Certiorarified Mandamus to call for the records and quash the letter of Chief Financial Controller/Revenue, TANGEDCO bearing No: CFC/FC/DFC/AAO.HT/AS 3 / REV/D.No 115/13 dated 29.07.2013. In some of the writ petitions, further relief sought to forebear the TANGEDCO officials from demanding or levying demand charges without applying DEEMED DEMAND CONCEPT as envisaged in Traffic Order 2 of 06 dated 15.05.2006 and for quashing of demand charge made or for refund of demand charge paid pursuant to the CC Bills raised by TANGEDCO following the impugned letter.

2. The Learned Single Judge, vide his common order, dated14.09.2018, quashed the impugned letter and allowed the writ petitions with the observation that the Tamil Nadu Electricity Regulatory Commission has to undertake the process of revision either suo motu or through an application, if any filed before the Commission and conduct the adjudicative process by issuing notice to all the stakeholders and after hearing the parties aggrieved, decision shall be taken on merits and in accordance with law.

3. The appeals under consideration are directed against the above finding of the learned Single Judge. According to the appellants, the writ petitioners have knocked the doors of justice with unclean hands. The Learned Single Judge on being mislead by the petitioners, erroneously allowed the writ petitions ignoring the fact that the impugned letter, which is an inter department communication pursuant to the Tariff orders passed in the year 2012 and 2013 by the Regulatory Commission after following the due adjudicative process contemplated under the statute. The learned Single Judge erred in presuming that the impugned letter dated 29.07.2013 is an order of cancellation of the benefit of Deemed Demand Charges. This erroneous presumption has lead to the erroneous conclusion.

4. The Learned Senior Counsel appearing for the TANGEDCO and the Learned Counsel appearing for the TNERC tracing the background of the Deemed Demand Charges concession given to the Open Access High Tension Power Consumers in the year 2006 and the reason for rationalising the categories of HT consumer and the tariff orders passed subsequently in the year 2012 pursuant to the powers conferred under Sections 62 and 86 of theElectricity Act, 1986 submitted that, the impugned letter of the second respondent, dated 29.07.2013 is a consequence to the Tariff order passed by the Regulatory Commission. Without challenging the vires of the Tariff Order, the consequential communication and action taken as per the order, the writ petitions are filed by wilful suppression of facts in entirety. The Learned Single Judge without proper appreciation of the records placed before the court, allowed the writ petitions which are not even maintainable.

5. Per contra, the learned counsels appearing for the respondents/writ petitioners submitted that, the Order 2/200

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