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2025 Supreme(Online)(Mad) 80016

IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. Anand Venkatesh, J
M/s.Cheran Steels Pvt Ltd – Appellant
Versus
Tamil Nadu Power Distribution Corporation Ltd – Respondent
WP No. 22221 of 2025



Advocates:
For the Appellants/Petitioners: Mr.R.S. Pandiyaraj
For the Respondents: Mr.L.Jaivenkatesh

The court allowed payment of electricity arrears in installments under regulatory provisions, emphasizing authority discretion for service restoration.

Headnote:(A) Tamil Nadu Electricity Supply Code, 2004 - Regulations 17(5), 17(9)(a), and 17(9)(b) - Writ petition for mandamus seeking permission to pay electricity arrears in installments after disconnection of service - Petitioner was unable to clear arrears due to business loss, seeking alternate payment arrangement under applicable regulations. (Paras 1-10)

(B) Regulatory Framework - Interpretation of regulations regarding reconnection of service and installment payment for arrears - The court emphasized allowing a 40% upfront payment facilitating quicker reconnection, reflecting the discretionary power of the authority provided in the regulations. (Paras 8-9)

Facts of the case:
The petitioner did not pay current consumption charges in January and February 2025, leading to disconnection of service on 25.02.2025. They requested to pay 40% of their dues upfront, with a plan for the remaining balance in ten installments due to their financial situation.

Findings of Court:
The court allowed the petitioner to pay 40% of the outstanding amount upfront for service restoration, with the balance payable in monthly installments, conditional on continuous payment of current charges.

Issues: The main issues involved the interpretation of regulatory provisions relevant to installment payments for service reconnection and the authority's discretion therein.

Ratio Decidendi: The court found that the regulatory framework allows discretion for installment payments and should favor restoration of service when possible, emphasizing the importance of practical business continuity for the petitioner. The ruling reinforced that timely payment would prevent further disconnection actions.

Result: Writ petition disposed of in favor of the petitioner.

Table of Content
1. writ petition filed for restoration of electricity supply. (Para 1 , 2 , 3)
2. petitioner seeks payment in installments due to financial difficulties. (Para 4 , 5)
3. court reviews prior orders for similar regulatory compliance. (Para 6 , 7 , 9)
4. court decision facilitates payment schedule for outstanding dues. (Para 10)

ORDER

The writ petition has been filed for the issue of a writ of mandamus directing the 2nd Respondent, to permit the petitioner to pay the arrears of Rs.28,44,438/- as per Regulation 17(5), 17(9)(a) and 17(9)(b) of the Tamil Nadu Electricity Supply Code , 2004 along with restoration charges and other charges and restore supply on Payment of the 1st installment.

2. Heard Mr.R.S. Pandiyaraj, learned counsel for the petitioner and Mr.L.Jaivenkatesh, learned Standing Counsel for respondents 1 and 2.

3. The petitioner is having a HT service connection under the 2nd respondent. Due to business loss, the petitioner was not able to pay current consumption charges for the month of January and February, 2025. Hence the service connection was disconnected on 25.02.2025. The current consumption charges arrears workout to a sum of Rs.28,44,438/-.

4. The petitioner wanted to revive the industry and they were not in a position to clear the arrears in one lumpsum payment. The petitioner by relying upon the relevant regulation has sought for a direction to the respondent to permit the petitioner to pay 40% of total arrears for reconnection and balance 60% in 10 equal monthly installments along with regular current consumption charges as per Regulation 17(5), 17(9)(a) and 17(9)(b) of the Tamil Nadu Electricity Supply Code , 2004.

5. The learned Standing Counsel appearing on behalf of the respondents submitted that the petitioner has to necessarily wait for the six months period to get over and only after the supply is closed, such installment payment can be paid under Clause 22(4) 6 (II) of the Tamil Nadu Electricity Supply Code , 2004.

6. The learned counsel for the petitioner brought to the notice of this Court the earlier order passed in W.P.No.11326 of 2025, dated 27.03.2025, which dealt with the similar issue.

7. On considering the facts and circumstances of the case and the materials placed before this Court and also after considering the earlier order passed in W.P.No.11326 of 2025, dated 27.03.2025, this Court find that the present case is covered by the said order. For better appreciation, the relevant portion of the order is extracted hereunder, “6. The regulation 17(5) is extracted hereunder:

“17(5) If a service connection remains disconnected for a period of three months due to -

(i) Non payment of dues to the Licensee, or, (ii) due to any statutory direction issued for disconnection by any Government Authoirty in exercise of the orders of any Legal Forum or the direction issued by the Pollution Contral Board which falls under regulation 21(2) of this Code or due to Orders of any Court of law or any legal forum having conpetent jurisdiction, the Licensee shall issue a notice requiring the consumer to get the supply restores, by clearing the outstanding dues and duly obtaining the necessary clearance from the appropriate authorities who have ordered the disconnection, as the case may be, within three months from the date of receipt of such a notice duly intimating that failure to avail supply within that period would result in termination of the agreement, and after the expiry of notice period of three months, the agreement shall stand terminated provided that no disputed amount due to any other Court cases remains unpaid. However, the monthly minimum charges shall be levied for the maximum of six months.”

7. The regulation 17(9)(a) and 17(9)(b) are extracted hereunder for ready reference:-

“9(a) In case of service connections in a permises, which have been disconnected/dismantled for defaults in payment of dues whatsoever and if such service connections are to be reconnected or new service connections

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