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2025 Supreme(Telangana) 1565

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
NAGESH BHEEMAPAKA, J.
The chief General Manager – Appellant 
Versus 
Ankit Packaging limited - Respondent
Writ Petition No. 36841 of 2024
Decided On : 21-11-2025

Advocates:
Advocate Appeared:
For the Appellant : N SREEDHAR REDDY SC FOR TELANGANA TRANSCO
For the Respondent: NISHTHA

The Ombudsman exceeded jurisdiction by preventing surcharge collection as per regulatory provisions, affirming that tariffs under the Electricity Act must be adhered to.

Headnote:(A) Electricity Act, 2003 and APSEB (Recovery of Dues) Act, 1984 - Writ Petition filed against decision of the Vidyut Ombudsman terminating surcharge collection post notice dated 31.08.2019 - Jurisdiction exceeded by Ombudsman in restricting recovery of dues and surcharge - Power supply to respondent disconnected for non-payment as per contractual terms - Petitioners entitled to levy surcharge as per regulations set by the Telangana Electricity Regulatory Commission. (Paras 3, 6)

(B) Jurisdiction and Authority of Ombudsman - Ombudsman must operate within the framework of laws and regulations; unauthorized to waive penalties without legal backing. (Paras 4, 5)

Facts of the case:
Petitioners disconnected the power supply of the respondent for non-payment of dues, leading to a series of notices for recovery and a subsequent complaint challenging these actions. The Ombudsman partially allowed the appeal, challenging the legality of this order led to the present Writ Petition.

Findings of Court:
The court ruled that the Ombudsman’s order was beyond its jurisdiction, allowing the petitioners to impose surcharge as per established regulatory frameworks.

Issues: Key questions revolved around the authority of the Ombudsman to limit surcharge and legality of recovery actions taken by the petitioners.

Ratio Decidendi: The court determined the Ombudsman exceeded its authority by preventing surcharge collection, reaffirming the mandatory adherence to the Electricity Act and relevant regulations.

Result: Writ Petition allowed.

Table of Content
1. background on power supply and payment disputes (Para 1 , 2)
2. (Para 3 , 4 , 5)
3. court's ruling on exceeding jurisdiction (Para 6)
4. conclusion and order of the court (Para 7 , 8)

ORDER :

1. This Writ Petition is filed aggrieved by the order passed by the 2nd respondent - Vidyut Ombudsman in Appeal No. 28 of 2023-24, dated 23.10.2023.

2. The case of petitioners – TGSPDCL is that the 1st respondent is a HT Consumer vide HT SC No. MDK 558 (SGR 558); power supply was released on 28.01.1993 and it was disconnected on 30.12.2009 due to non-payment of Current Consumption Charges. Subsequently, the 1st respondent sought restoration of power supply under Sick Industries Revival Scheme. In that regard, petitioners and the 1st respondent entered into a separate HT Agreement on 10.05.2010 and power supply was restored on 11.05.2010 under the provisions of Sick Industries Revival Scheme. As the 1st respondent has once again defaulted in payment of C.C. Charges, power supply was disconnected by petitioners on 09.08.2010. In spite of several notices, dues amounting to Rs. 12,30,603/- were not paid by the 1st respondent. Therefore, as per Clause 5.9.4.3 of General Terms and Conditions of Supply (GTCS in short), the HT Agreement of the 1st respondent was terminated on 10.05.2012 ie. after completion of minimum guaranteed period of two years from the date of HT Agreement dated 10.05.2010.

2.1. Thereafter, petitioners initiated steps for recovery of amounts from the 1st respondent under APSEB (Recovery of Dues) Act, 1984 and APSEB (Recovery of Dues) Rules, 1985 and issued Notice in Form ‘A’ dated 21.08.2018 for recovery of Rs. 9,15,530/- after adjusting the available security deposit of Rs. 3,25,254/-. As there was no response from the 1st respondent, Notice in Form ‘B’ was issued on 31.08.2019 for payment of Rs. 21,36,882/ which includes surcharge from the date of termination of agreement of the 1st respondent. Petitioners have also addressed letter to the District Collector for recovery of electricity arrears under the provisions of Revenue Recovery Act, by attaching and sale of immovable property belonging to the 1st respondent.

2.2. At that stage, the 1st respondent made representations dated 19.05.2021 and 20.05.2021 for restoration of power supply and waiver of surcharge. As petitioners do not have power to waive surcharge, a letter was addressed to the 1st respondent dated 15.12.2021 to pay Rs. 21,36,882/-. The 1st respondent then approached the Consumer Grievances Redressal Forum (CGRF) by filing a Complaint vide No. CG/664/22-23/Sangareddy Circle, to set aside the notice issued under Revenue Recovery Act for an amount of Rs. 21,36,882/ and to waive penal charges including surcharge from the date of disconnection of power supply and also for refund of the security deposit amount of Rs. 3,25,254/-. The CGRF rejected the complaint of the 1st respondent by Award dated 10.08.2023.

2.3. Aggrieved by the said rejection order of CGRF, the 1st respondent filed Appeal before the 2nd Respondent (Vidyut Ombudsman) in Appeal No. 28/2023-24. The said Appeal was partly allowed by Award dated 03.10.2023, directing petitioners to collect Rs. 21,36,882/- as mentioned in notice issued in Form ‘B without levying any further surcharge. Challenging the same, the present Writ Petition came to be filed.

3. Learned Standing Counsel for TGSPDCL Sri N. Sreedhar Reddy submits that for every delayed payment by the consumer, surcharge is imposed as per the orders issued by Telangana Electricity Regulatory Commission (‘the Commission’) and the 2nd Respondent can only follow the said provisions of law and pass orders, whereas in the case on hand, the 2nd Respondent exceeded its jurisdiction and directed petitioners not to levy any further surcharge beyond the notice issued in Form ‘B’ dated 31.08.2019. Therefore, the Award of the 2nd Respondent is beyond its jurisdiction. He further contends that as the impugned Award passed by the 2nd Respondent is wit

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