Madras High Court
Anangoor Textile Mills (P) Ltd vs State Of Tamil Nadu on 6 December, 2021
W.P.No.9154 of 2018
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED 06.12.2021
CORAM
THE HONOURABLE MR.JUSTICE KRISHNAN RAMASAMY
W.P.No.9154 of 2018
and
W.M.P.Nos.10971 & 10972 of 2018
Anangoor Textile Mills (P) Ltd.,
SF No.5, Anangoor, Chinnadarapuram via,
Dharapuram Taluk,
Erode District,
Rep.by its Authorized Signatory Mr.C.Kumar ... Petitioner
Vs.
1.State of Tamil Nadu,
Rep.by the Secretary to Government,
Energy Department,
Secretariat, Fort St.George,
Chennai – 600 009.
2.The TANGEDCO,
Rep.by its Chairman,
No.800, Anna Salai,
Chennai – 600 002.
3.The Chief Engineer/Commercial,
TANGEDCO,
144, Anna Salai,
Chennai – 600 002.
4.The Superintending Engineer,
Udumalpet Electricity Distribution Circle,
TANGEDCO, Udumalpet. ... Respondents
https://www.mhc.tn.gov.in/judis
1/10
W.P.No.9154 of 2018
PRAYER : Petition filed Under Article 226 of the Constitution of India
praying to issue a Writ of Certiorarified Mandamus, to call for the
records of the 4th respondent in his impugned demand notice dated
09.03.2018 bearing No.Lr.No.SE/UEDC/UDT/DFC/AO/R/AAO/HT/AS/
F.TF concession204/2018, and quash the same as illegal, arbitrary,
without the authority of law and against the very spirit of the order of the
Supreme Court dated 16.05.2008 and consequently direct the
respondents to grant tariff concession to the petitioner by following the
procedure laid down by the Hon'ble Supreme Court in its Judgment dated
16.05.2008 passed in Civil Appeal No.3940 of 2008 and permit the
petitioner to release the Bank Guarantees executed in favour of the
respondents with respect to the tariff concession amount.
For Petitioner : Mr.S.P.Parthasarathy
For Respondents : Mrs.C.Meera Arumugam
Additional Government Pleader
for R1
Mr.L.Jai Venkatesh
Standing Counsel for R2 to R4
ORDER
This Writ Petition has been filed to issue a Writ of Certiorarified
Mandamus, to call for the records of the 4th respondent in his impugned
demand notice dated 09.03.2018 bearing
No.Lr.No.SE/UEDC/UDT/DFC/AO/R/AAO/HT/AS/F.TFconcession204/
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W.P.No.9154 of 2018
2018, and quash the same as illegal, arbitrary, without the authority of
law and against the very spirit of the order of the Supreme Court dated
16.05.2008 and consequently direct the respondents to grant tariff
concession to the petitioner by following the procedure laid down by the
Hon'ble Supreme Court in its Judgment dated 16.05.2008 passed in Civil
Appeal No.3940 of 2008 and permit the petitioner to release the Bank
Guarantees executed in favour of the respondents with respect to the
tariff concession amount.
2. The issue involved in the present Writ Petition and the issue in
W.P.No.2860 of 2018 dated 16.11.2021 are one and the same. Therefore,
the learned counsel appearing for the petitioner submits that this matter
also may be disposed of on the very same lines. The petitioner expressed
their readiness on 13.01.1997 and therefore, he submits that the issue in
this Writ Petition is squarely covered by the issue in W.P.No.2860 of
2018.
3. It is relevant to extract Paragraph Nos.10 and 11 of the order of
this Court passed in W.P.No.2860 of 2018 dated 16.11.2021, reads as
under:
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W.P.No.9154 of 2018
“10. For determining the eligibility of the
petitioner, the word "set up" indicated in the Government
Order requires to be interpreted. The word "set up" has to
be liberally and harmoniously interpreted in the best
interest of the consumers. This Court carefully perused the
pleadings made by the petitioner in the Writ Petition. The
petitioner set up an industry, i.e., a Paper Mill with a
capital investment of around Rs.23.81 Crores and made an
application 09.10.1995 for a maximum demand of 3500
KVA of supply of electrical energy pet under the category
of "High Tension". The said application was kept pending
for more than 10 months without assigning any reason by
the respondents. Later, vide communication dated
19.08.1996, the 3rd respondent sanctioned the demand of
3500 KVA and pursuant to the same, the petitioner also
paid EMD of Rs.10,50,000/- on 11.09.1996. Thereafter, the
petitioner vide communication dated 18.09.1996, expressed
its readiness to avail power after completion of civil works
and having equipments installed at the site. While so, there
was no response from the respondents despite the petitioner
approaching them periodically and despite expressing its
readiness to avail power. It is pertinent to note that the
respondents had kept silent without taking any efforts to
process the request of the petitioner, which expressed its
readiness as early as on 18.09.1996. But only in the year
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W.P.No.9154 of 2018
1997, i.e. after a lapse of 11 months, the respondents sent a
communication dated 01.09.1997, requesting the petitioner
to pay Development and Service Connection Charges for
the purpose of providing service connection. Immediately,
the petitioner also paid the said amount on 03.09.1997.
Later, the petitioner obtained CEIG certificate and finally,
the respondents provided service connection on
31.10.1998. Had the respondents responded in time well
before the cut off date, the petitioner would have certainly
come under the zone of consideration for availing tariff
concession. But due to the delay on the part of the
respondents in providing the power supply, there is no
justification on the part of the respondents to contend that
the petitioner is not eligible to avail the tariff concession.
In such event, the petitioner cannot be penalized for the
inaction on the part of the respondents in effecting
electricity supply before the cut off date. Therefore, the
contention of the respondents that the petitioner did not
commence commercial production before the cut off date
and thereby, they are not eligible for tariff concession
cannot be countenanced. It has to be seen whether the
petitioner did not commence production owing to the delay
attributable on his part or the delay is on the part of the
Board in effecting service connection. This is more so that
this was not the intention of the Government in taking a
policy decision to extend tariff concession. Had it been the
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W.P.No.9154 of 2018
intention of the Government, it could have excluded those
who have not obtained power connection before
15.02.1997 by specifically stating that the concession
would be extended only to those who have commenced
commercial production before the cut off date. It was
merely stated that those who have set up the industries are
entitled for the tariff concession, meaning thereby, those
who have applied and are ready to take up the service
connection are also entitled for the concession. This alone
would be the criteria for extending the tariff concession
and the word "set up" has to be interpreted only in this
way. Such consumers who were ready to take up the
service connection by keeping intact all the infrastructural
amenities can only be construed as pre-existing industries.
By virtue of this position, the petitioner, who had set up a
new industry with the electricity supply to be provided by
the respondents, acquires a vested right. It is not in dispute
that the petitioner has applied well before the cut off date
and having paid EMD, expressed its readiness and was
anticipating to get power supply effected by the
respondents by providing all the infrastructural facilities
required for the same. In other words, the petitioner was
ready to take the service connection that may be provided
by the respondents. The anticipation of the petitioner in
setting up industry by investing huge amount towards
recruiting men, machineries, fixtures and other
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W.P.No.9154 of 2018
infrastructural amenities, on the basis of the concession
announced by the Government to extend power tariff, is a
legitimate expectation which cannot be denied by the
respondents.
11. As regards the impugned order is concerned, the
3rd respondent did not take note of the delay on the part of
the department in effecting the service connection but
merely rejected the claim of the petitioner. In other words,
it was not specifically stated as to whether the delay in
getting service connection is on the part of the petitioner or
not. It was also not specifically stated as to whether the
individual consumer/petitioner has applied for setting up
the industry in time, provided necessary infrastructural
amenities to take the service connection, remitted the
amount required for effecting service connection etc., As
regards remittance of amount towards development
charges/meter charges, unless the respondents demand the
petitioner to remit it before the cut off date, they will not be
in a position to do so. Therefore, the respondents ought to
have stated in the impugned order that in spite of demands
made by them, the petitioner has failed and neglected to
remit the amount. In the absence of indicating any such
specific date on which the amount was demanded by the
respondents and the date on which the amount was paid by
the petitioner, the impugned order is liable to be vitiated.”
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W.P.No.9154 of 2018
4. In view of the above, the writ petition stands allowed and the
impugned demand notice dated 09.03.2018 bearing
No.Lr.No.SE/UEDC/UDT/DFC/AO/R/AAO/HT/AS/F.TFconcession204/
2018, issued by the 4th respondent is hereby set aside. No costs.
Consequently, connected miscellaneous petitions are closed.
06.12.2021
Pns
Index : Yes / No
Internet : Yes / No
Speaking/Non-speaking order
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W.P.No.9154 of 2018
To
1.The Secretary to Government,
State of Tamil Nadu,
Energy Department,
Secretariat, Fort St.George,
Chennai – 600 009.
2.Chairman,
The TANGEDCO,
No.800, Anna Salai,
Chennai – 600 002.
3.The Chief Engineer/Commercial,
TANGEDCO,
144, Anna Salai,
Chennai – 600 002.
4.The Superintending Engineer,
Udumalpet Electricity Distribution Circle,
TANGEDCO, Udumalpet.
https://www.mhc.tn.gov.in/judis
W.P.No.9154 of 2018
KRISHNAN RAMASAMY.,J.
Pns
W.P.No.9154 of 2018
and
W.M.P.Nos.10971 & 10972 of 2018
06.12.2021
https://www.mhc.tn.gov.in/judis
