MADRAS HIGH COURT
Pongalur Pioneer Textiles P – Appellant
Versus
The Chairman – Respondent
WP/14286/2017
ELECTRICITY - DEEMED DEMAND CHARGES - WITHDRAWAL OF CONCESSION - PAYMENT OF 50% OF DEMAND MADE - INTERIM ORDER PASSED BY DIVISION BENCH - WRIT PETITION DISPOSED OF WITH DIRECTION TO CONTINUE PAYMENT OF 50% OF DEMAND TILL DISPOSAL OF WRIT APPEAL - PAYMENT MADE SUBJECT TO RESULT OF WRIT APPEALS.
Fact of the Case:
The petitioner, a textile company, had been granted a concession of deemed demand charges by the respondents, TANGEDCO. However, the respondents later withdrew this concession, leading the petitioner to file a writ petition challenging the withdrawal.
Finding of the Court:
The court noted that a similar issue had been considered by a learned single Judge of the court and the impugned orders had been quashed. However, the respondents had filed an appeal against the single Judge's order, which was pending before a Division Bench.
Issues: Whether the respondents were justified in withdrawing the concession of deemed demand charges granted to the petitioner.
Ratio Decidendi: The court relied on the interim order passed by the Division Bench, which directed the petitioner to pay 50% of the demand made pursuant to the impugned order. The court held that the petitioner should continue to pay 50% of the demand till the disposal of the writ appeal by the Division Bench.
Final Decision: The writ petition was disposed of with a direction to 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 made it clear 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 : 05.01.2022
C O R A M
THE HON'BLE MR.JUSTICE KRISHNAN RAMASAMY
W.P.NO.14286 OF 2017
AND
W.M.P.NOS.15480 TO 15482 OF 2017
The Pongalur Pioneer Textiles P.Ltd.,
HTSC No.236,
8, Sundaram Apartments,
83, Race Course Road,
Coimbatore – 641 018,
Rep. by its authorized Signatory,
K.Nagarajan.
... Petitioner
.Vs.
1. The Chairman,
The 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 Ltd.,
Tirupur Electricity Distribution Circle,
Tirupur.
4. The Tamil Nadu Electricity Regulatory Commission,
Rep. by its Secretary,
No.19A, Rukmani Lakshmipathy Salai,
Egmore, Chennai - 600 008.
... Respondents
PRAYER:-
Writ Petition filed under Section 226 of the Constitution
of India, prayed for the issuance of Writ of Certiorari, calling
https://hcservices.ecourts.gov.in/hcservices/
for the records of the 2nd respondent contained in impugned
letter No.CFC/FC/DFC/AAO.HT/AS.3/REV/D.N.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.
For Petitioner :
Mr.R.S.Pandiyaraj
For Respondents :
Mr.Abdul Kalam
Standing Counsel
For R1 to R3
No appearance
For R4
ORDER
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
https://hcservices.ecourts.gov.in/hcservices/
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 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
challege in the writ petitions, within a period of
two weeks from the date of each demand. It is also
made clear that the amount collected by virtue of
the interim order in the writ petitions as well as
in these writ appeals, by the
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