MADRAS HIGH COURT
Compact Spinners (India) Pvt – Appellant
Versus
The Chairman – Respondent
WP/8126/2017
ELECTRICITY ACT - DEEMED DEMAND CHARGES - WITHDRAWAL OF CONCESSION - Petitioner aggrieved by the withdrawal of the concession of the deemed demand charges extended to the petitioner by the respondents. - Petitioner has been paying the 50% deemed demand charges as per the direction of the Division Bench. - Writ petition 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 is disposed of by the Division Bench.
Fact of the Case:
The petitioner, a company engaged in spinning, filed a writ petition challenging the withdrawal of the concession of the deemed demand charges extended to them by the respondents, TANGEDCO and TNERC. The petitioner contended that the withdrawal was arbitrary, illegal, and violative of the provisions of the Electricity Act, 2003, and the orders of TNERC.
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 were quashed. However, the respondents had preferred an appeal against the single Judge's order, and the appeal was pending before a Division Bench.
Issues: Whether the withdrawal of the concession of the deemed demand charges extended to the petitioner by the respondents was arbitrary, illegal, and violative of the provisions of the Electricity Act, 2003, and the orders of TNERC.
Ratio Decidendi: The court relied on the order passed by the Division Bench in the appeal filed by the respondents. The Division Bench had directed the petitioner to continue to pay 50% of the demand made towards the deemed demand charges till the disposal of the writ appeal.
Final Decision: The court disposed of the writ petition with a direction to the petitioner to continue to pay 50% of the demand made towards the deemed demand charges till the writ appeal is 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 : 05.01.2022
C O R A M
THE HON'BLE MR. JUSTICE KRISHNAN RAMASAMY
W.P.No.8126 of 2017
and
W.M.P.Nos.8900 & 8901 of 2017
Company Spinners (India) Pvt Ltd.,
HTSC NO.254, Dindigul-Palani NH,
Kothapuli Village, Reddiachathram – 624 622,
Dindigul Rep.by its authorized Signatory
K.Ramesh Mari
...Petitioner
Vs
1.The Chairman,
Tamil Nadu Generation and Distribution Corporation
Limited,
(TANGEDCO),
144, Anna Salai, Chennai - 600 002.
2.Chief Financial Controller/Revenue,
TANGEDCO,
144, Anna Salai, Chennai - 600 002.
3.The Superintending Engineer,
TANGEDCO Ltd.,
Dindigul Electricity Distribution Circle,
Dindigul.
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
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.
https://hcservices.ecourts.gov.in/hcservices/
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 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
https://hcservices.ecourts.gov.in/hcservices/
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 a
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