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2024 Supreme(Online)(MAD) 19490
HIGH COURT OF MADRAS
M.DHANDAPANI, J
M/s.Giri Sahajanya Projects – Appellant
Versus
Tamil Nadu Generation and Distributio Corporation – Respondent
Lack of wilful default by the consumer precludes the application of minimum charges under the TNERC Supply Code when disconnection arises from external regulatory orders.
Headnote:
Electricity - Power Supply Disconnection - TNERC Supply Code Regulation List - The court examined the provisions of the TNERC Supply Code, finding that since disconnection arose from a Pollution Control Board order rather than wilful default, the demand for minimum charges was unjustified, leading to the Writ Petition's allowance.
Fact of the Case:
The petitioner sought to quash a letter demanding Rs.20,95,360 for minimum charges after their power was disconnected due to a Pollution Control Board order, which was later overturned by an appellate authority.
Finding of the Court:
The court found that the disconnection was not due to any fault of the petitioner but rather due to an external order. Thus, the demand for monthly minimum charges was unwarranted.
Issues: Whether the demand for minimum charges post-disconnection was valid given that the disconnection was under an external authority's order, not due to the petitioner's default.
Ratio Decidendi: The court determined that charges cannot be imposed for a disconnection that was not due to a consumer's fault, adhering to the regulations governing electricity supply.
Final Decision: The Writ Petition is allowed, and the demand for minimum charges is set aside.
O R D E R
This Writ Petition is filed to quash the impugned letter in LR.No.SE/SEDC/AOR/AAO/HT/ASII/F.HTSC255/D.297/22 dated 29.06.2022 on the file of the 1st respondent and consequently to direct the 1st respondent to restore the power supply without any demand within a stipulated period of time.
2. The learned counsel for the petitioner would submit that the petitioner company namely M/s.Giri Sahajanya Projects [formerly known as K.S.Blue Metal Crusher (P) Ltd], is a partnership company involved in the business of stone crushing, blue metal and sales of Jelly, Gitti etc. at Survey No.199/10, Masinaikenpatti Village, Vallapadi Taluk, Salem. The said Quarry was established after obtaining order of consent dated 25.03.2018 to operate from the Tamil Nadu Pollution Control Board with production quantity to a maximum of 25,000 Metric Tonne per Month for the period upto 31.03.2027. The Tamil Nadu Pollution Control Board inspected the unit and issued a show cause notice mentioning certain deficiencies and violations. However, the Chairman, Tamil Nadu Pollution Control Board, issued a closure order as against the petitioner, pursuant to which the electricity connection was disconnected by the Tamil Nadu Electricity Board and the said order was challenged by the petitioner by way of an appeal in Appeal No.81 of 2021. The appellate authority by its order dated 19.01.2022 set aside the order of the Pollution Control Board. Along with the appellate authority order, the petitioner made a representation for restoring the said connection. However, the 1st respondent demanded a sum of Rs.20,95,360/- towards monthly minimum charges for the period of 20 months. Challenging the same, the Writ Petition has been filed.
3. Learned counsel for the petitioner submitted that as per the TNERC Supply Code Regulation, 2017, if the petitioner committed wilful default, for disconnection of electricity connection, then the petitioner has to pay necessary charges pursuant to the disconnection in view of the reconnection from the electricity board. However in the present case, there is no wilful default on the part of the petitioner and the service connection was disconnected based on the Pollution Control Board order, which was also subsequently set aside by the appellate authority, for which the respondents cannot claim monthly minimum charges from the petitioner without doing default. Accordingly, he prayed for allowing the Writ Petition.
4. Per contra, the learned counsel appearing for the respondents filed counter affidavit, wherein it has been specifically stated as follows:
“6. The petitioner has given a representation to restore the service connection based on the order of the Chairman of Tamil Nadu Pollution Control Board proceeding No.T2/TNPCB/F.014521/SLM/Suspension of closure/W&A/2020 dated 27.05.2022 vide petitioner letter dated 12.06.2022. As requested by the petitioner, the 1st respondent has worked out an amount of Rs.20,95,360/- towards the monthly minimum charges upto 06/2022 and the fact was communicated to the petitioner for making payment by the 1st respondent for considering their request vide letter dated 29.06.2022.
7. I respectfully submit that as per the TNERC Supply Code Regulation 17(1) as reproduced as below;
Every consumer shall pay to the licensee, from the date of commencement of supply till the agreement is terminated, security deposit, minimum monthly charges, fixed charges if any, other charges as provided in the tariff orders, this code and any other order in this regard by the commission, from time to time. However, any consumer, who has not availed of reconnection even after the expiry of termination of agreement period, the monthly minimum charges shall be payable up to the date of termination of such agreement.”
In view of the above, all the consumers who have availing the supply from TANGEDCO, all the consumers have to pay the charges until termination of agreement. But the petitioner industry has not been terminated the ag
