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2024 Supreme(Online)(MAD) 16365

HIGH COURT OF MADRAS
Honourable Mr Justice M.DHANDAPANI
M/S.VSM WEVESS INDIA PRIVATE LIMITED – Appellant
Versus
THE CHAIRMAN – Respondent



The court recognized the right to adjust excess Security Deposits against consumption charges under the provisions of the Tamil Nadu Electricity Supply Code.

Headnote:

Refund - Electricity Supply - TN Electricity Supply Code 2004 - Clause 5(5)(v) - Court directed the adjustment of excess Security Deposit towards consumption charges in instalments.

Fact of the Case:

A writ petition was filed for the refund of excess Security Deposit of Rs.1,53,75,194/-, which was not refunded despite representations, impacting the petitioner's industry during a recession.

Finding of the Court:

The court directed respondents to adjust the excess Security Deposit against current consumption charges in ten instalments starting from August 2024, without deciding the merits.

Issues: Whether the excess Security Deposit could be refunded and under what terms the adjustment against consumption charges is permissible.

Ratio Decidendi: The court emphasized the importance of financial relief for the struggling industry, allowing the adjustment of the excess Security Deposit in instalments.

Final Decision: The respondents were directed to adjust the excess Security Deposit in instalments from August 2024.

ORDER

By consent of both the parties, this writ petition is taken up for final disposal at the time of admission itself.

2. This writ petition is filed to direct the respondents to refund a sum of Rs.1,53,75,194/- along with interest @ 6.75% from 01.04.2024 upto the date, of full refund of the excess Security Deposit, which is kept pending unauthorisedly with the respondents, which is legally refundable to the petitioner for his HTSC No.049094370536 as per Clause 5(5) (v) of the TN Electricity Supply Code 2004.

3. The learned counsel for the petitioner submits that excess Security Deposit amount is available with the respondents and it is not refunded so far inspite of representation. On the other hand, the petitioner-industry is struggling for survival due to continuous recession in the industry. In such event, if the amount is refunded, even in instalments it will lend support to the continuance of the petitioner industry. In support of his contention, he drew the attention of this Court to the relevant Clause mentioned in Tamil Nadu Electricity Supply Code , 2004 for refund of excess Security Deposit and prayed for issuance of appropriate direction to the respondents to refund the said deposit amount of Rs.1,53,75,194/- along with interest.

4. The learned Standing Counsel appearing for the respondents submits that the excess Security Deposit available with the respondents will be adjusted by the respondents towards the consumption charges payable by the petitioner. However, he submitted that as per the Working Sheet issued by the respondents, the excess amount lying in HTSC No.049094370536 towards Current Consumption Deposit for the year 2023-2024 is only Rs.1,39,89,250/- and he agrees, on instructions, that the same will be adjusted in instalments in the ensuing Current Consumption charges. Accordingly, the learned Standing counsel appearing for the respondents prayed this Court to issue appropriate directions in this regard.

5. Considering the submissions made by the learned counsel for both sides, this Court, without going into the merits of the case, disposes of this writ petition, by directing the respondents to adjust the excess Security Deposit pertaining to HTSC No.049094370536 in ten instalments in the ensuing Current Consumption charges. The said exercise will commence from the month of August 2024 onwards. No costs. Consequently, connected miscellaneous petition is closed.

07.08.2024 Index : Yes / No Internet: Yes/No Speaking Order/Non-Speaking Order vsi2 To

1. The Chairman, Tamil Nadu Generation and Distribution Corporation Ltd., No.144, Anna Salai, Chennai – 600 002.

2. The Director – Finance, Tamil Nadu Generation and Distribution Corporation Ltd., (TANGEDCO), 7th Floor, 144, Annasalai, Chennai – 600 002.

M.DHANDAPANI, J.

vsi2

3. The Superintending Engineer, Tamil Nadu Generation and Distribution Corporation Ltd., (TANGEDCO), Namakkal Electricity Distribution Circle, Namakkal. .

W.P. No.22805 of 2024

07.08.2024

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