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2022 Supreme(Online)(Mad) 68149

MADRAS HIGH COURT
S.M. SUBRAMANIAM, J
Jai India Waving Mills (P) Ltd – Appellant
Versus
The Chairman – Respondent
WP/13203/2016



A party to a writ appeal is required to comply with the interim orders passed by the appellate court, including orders directing payment of a certain percentage of the disputed demand.

Headnote:

ELECTRICITY - DEEMED DEMAND CHARGES - WITHDRAWAL OF CONCESSION - PAYMENT OF 50% OF DEMAND - DIVISION BENCH ORDER - CONTINUATION OF PAYMENT - SUBJECT TO RESULT OF WRIT APPEALS - WRIT PETITION DISPOSED OF ACCORDINGLY.

Fact of the Case:

The petitioner, a textile mill, filed a writ petition challenging the withdrawal of the concession of deemed demand charges extended to it by the respondents, TANGEDCO and TNERC. The petitioner contended that the impugned order was arbitrary, illegal, and violative of the provisions of the Electricity Act, 2003 and the orders of the TNERC.

Finding of the Court:

The court noted that a similar issue had been considered by a learned single Judge of the same court and the impugned orders had been quashed. However, the respondents had preferred an appeal against the single Judge's order, which was pending before a Division Bench.

Issues: Whether the petitioner was entitled to continue to enjoy the concession of deemed demand charges.

Ratio Decidendi: The court relied on the order passed by the Division Bench in the pending writ appeal, which directed the petitioner to pay 50% of the demand made pursuant to the impugned order.

Final Decision: The court directed the petitioner to continue to pay 50% of the demand made towards the deemed demand charges till the writ appeal was disposed of by the Division Bench. The court also clarified that the payment made by the petitioner would be subject to the result of the writ appeals.

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 11.01.2022

CORAM

THE HONOURABLE MR. JUSTICE S.M.SUBRAMANIAM

W.P.No.13203 of 2016

and

W.M.P Nos.11570 & 11571 of 2016

Jai India Waving Mills (P) Ltd.,

HTSC No.232,

S.F.No.155/5,6,7,8,9,10 & SF No.156/2,3,4,5,6 & 8,

Pudhur, Pudhupalayam Village,

Vannankattuvalasu, Erode,

Rep. by its Authorised Signatory

A.Ananthbabu

..Petitioner

vs.

1.The Chairman,

Tamil Nadu Generation and Distribution

Corporation Limited,

(TANGEDCO),

144, Anna Salai,

Chennai – 600 002.

2.The Chief Financial Controller/Revenue,

TANGEDCO,

144, Anna Salai,

Chennai – 600 002.

3.The Superintending Engineer,

TANGEDCO,

Erode Electricity Distribution Circle,

Erode.

4.Tamil Nadu Electricity Regulatory Commission

Through its Secretary,

No.19A, Rukmini Lakshmipathy Salai,

Egmore, Chennai - 600 008.

...Respondents

Prayer : Writ Petition is filed under Article 226 of the

Constitution of India, praying for the issuance of a Writ of

Certiorari, calling for the records of the second respondent

contained

in

impugned

letter

CFC/FC/DFC/AAO.

HT/AS.3/REV/D.No.115/13 dated 29.07.2013 and quash the same as

arbitrary, illegal and violative of the provisions of the

Electricity Act, 2003 and the orders of the TNERC.

https://hcservices.ecourts.gov.in/hcservices/

For Petitioner

: Mr.M.Saravanakumar

For Respondents-1, 2 and 3 : Mr.L.Jaivenkatesh,

Standing Counsel for TANGEDCO.

For Respondent-4 : No Appearance

O R D E R

This writ petition has been filed aggrieved by the

withdrawal of the concession of the deemed demand charges

extended to the petitioner by the respondents.

2. This issue was considered by the learned single

Judge of this Court and similar impugned orders were quashed by

this Court. Aggrieved by the same, the respondents have

preferred an appeal and the same is pending in W.A.Nos.2539 &

2540 of 2018.

3. The Division Bench, while entertaining the writ

appeal, directed the concerned parties to pay 50% of the demand

made pursuant to the issuance of the impugned order. The

relevant portions in the order passed by the Division Bench are

extracted hereunder:

“6. This court has carefully

considered the rival submissions and also

perused the materials placed. In the light of

the stand taken by the Tamilnadu Electricity

Regulatory Commission in the counter

affidavit in paragraph No.14 in W.P.No.28256

of 2014 etc., batch of writ petitions,

coupled with the decision of the said

Commission, vide the order dated 31.03.2016

in R.A.No.6 of 2013, this Court is of the

considered view that prima facie case has

been made out for grant of interim orders.

7. Hence, there shall be an order

of interim stay as prayed for till

17.12.2018. It is also brought to the notice

of this Court by the learned Advocate General

that during the pendency of the writ

petitions interim stay has been granted

subject to the condition that the writ

petitioners pay 50% of the amount demanded

within a stipulated time.

8. Therefore, in the light of the

above facts and circumstances, and reasons

assigned above, this Court is of the

considered view that the same arrangement

shall continue till the disposal of the writ

appeals for the reason that appellant in the

event of success in these appeals may not be

https://hcservices.ecourts.gov.in/hcservices/

able to recover it and there may be

possibility of respondents / writ petitioners

to wind up operations due to vagaries of

business or other reasons. Therefore, without

prejudice to the rights and contentions, the

first respondents / writ petitioners shall

continue to pay 50% of the demand made as per

the impugned orders / demand, the subject

matter of challenge in the writ petitions,

within a period of two weeks from the date of

each demand. It is also made clear that the

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