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Thejo Engineering Ltd vs Tamil Nadu Generation And ...
2021 Latest Caselaw 24218 Mad

Citation : 2021 Latest Caselaw 24218 Mad
Judgement Date : 9 December, 2021

Madras High Court
Thejo Engineering Ltd vs Tamil Nadu Generation And ... on 9 December, 2021
                                                                               W.P.No.18252 of 2017


                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                DATED: 09.12.2021

                                                    CORAM

                                  THE HON'BLE MR. JUSTICE KRISHNAN RAMASAMY

                                               W.P.No.18252 of 2017
                                                       and
                                          W.M.P.Nos.19833 to 19835 of 2017

                 Thejo Engineering Ltd.,
                 HTSC: 1678
                 No.41, Whites Road,
                 Royapettah,
                 Chennai 600 014.
                 Represented by its Vice President HR Admin
                                                                             ...Petitioner
                                                        Vs


                 1.Tamil Nadu Generation and Distribution
                   Corporation Limited (TANGEDCO)
                   10th Floor, 144, Anna Salai,
                   Chennai 600 002.
                   Represented by its
                   Chairman and Managing Director

                 2.The Director-Distribution,
                   TANGEDCO,
                   10th Floor, Anna Salai, Chennai 600 002.

                 3.The Chief Financial Controller-Revenue
                   TANGEDCO,
                   7th Floor, 144, Anna Salai, Chennai 600 002.

                 1/8


https://www.mhc.tn.gov.in/judis
                                                                                            W.P.No.18252 of 2017




                 4.Tamilnadu Electricity Regulatory Commission,
                   19-A, Rukumini Lakshmipathy Salai,
                   Egmore, Chennai 600 008.
                   Represented by its Secretary.

                                                                                       ...Respondents

                 Prayer: Writ Petition filed under Article 226 of the Constitution of India,
                 prayed for the issuance of Writ of Certiorarified Mandamus calling for the
                 records of the 2nd and 3rd respondents relating to the bearing Circular
                 Memo.No.CFC/FC/REV/AS.3/D.325/17,                  dated      15.03.2017       and        the
                 consequential and further proceedings in                                                   (i)
                 Memo.No.CFC/REV/FC/REV/AS.3/F.CGP/D.203/17, dated 18.03.2017; (ii)
                 Circular         Memo      No.CFC/REV/FC/REV/AS.3/F.CGP/D.329/17                       dated
                 30/31.03.2017;          (iii) Lr.No.CFC/REV/FC/REV/DFC/AO.4/F.CGP Status/
                 D.259/2017        dated    31.03.2017;     (iv)    Memo.No.CFC/REV/FC/FC/REV/
                 F.CGPStatus/D.334/17                     dated             07.04.2017                     (v)
                 Memo.No.CFC/REV/FC/REV/AS.3/F.CGP/D.338/17, dated 15.04.2017 (vi)
                 Memo.No.CFC/REV/FC/REV/AS.3/F.CGP/D.340/17, dated 15.04.2017 and
                 quash the same as illegal and direct the respondents to strictly comply with the
                 statutory provisions of Electricity Act 2003, Electricity Rules, 2005 and the
                 binding judgments of the Hon'ble APTEL in the matter of determination and
                 verification of status of the Captive Generating Plants by approaching the
                 Tamilnadu        Electricity   Regulatory        Commission     for   directions         and
                 determination of the status of the Captive Generating Plants as stipulated under
                 under the provisions of Electricity Rules, 2005 and confirmed by the binding

                 2/8


https://www.mhc.tn.gov.in/judis
                                                                                               W.P.No.18252 of 2017


                 judgments of the Hon'ble APTEL.
                                  For Petitioner          : M/S.S.Ramasubramaniam & Asso.
                                  For R1, 2, 3            : Mr.L.Jai Venkatesh
                                                            Standing Counsel
                                                             ORDER

This writ petition was filed, challenging the various circulars/memos

mentioned above, issued by the 3rd respondent/The Chief Financial Controller-

Revenue of the TANGEDCO.

2. When the matter is taken up for hearing, the learned counsel for the

petitioner submits that initially, a similar issue was under challenge before the

Appellate Tribunal for Electricity, New Delhi. The said Tribunal has passed

the following order :

“17. Summary of Findings:-

Based on issue-wise discussion & analysis, stated supra, we sum up our findings as under:-

17.1 Issue No.1:- We hold that the second Respondent/TANGEDCO can be entrusted with the exercise of collecting & verifying data for the purpose of verification of captive plant status only. However, any coercive action to be initiated against the CGP /captive users regarding its captive status or for recovery of CSS,

https://www.mhc.tn.gov.in/judis W.P.No.18252 of 2017

as per law, it shall be decided by the first Respondent / State Commission.

17.2 Issue No.2:- We hold that for the purpose of granting open access for captive purpose, the document as recorded at Para 11.3 shall be adequate/sufficient. Needless to mention that these documents, as specified therein, are within the framework of TNERC Grid Connectivity & Intra State Open Access Regulations, 2014 and also do not violate the provisions of Rule 3 of the Electricity Rules, 2005.

17.3 Issue No.3:- We hold that as per provisions stipulated under the Rule 3 of the Electricity Rules, 2005, the SPV & AOP are two distinct entities and cannot be equated at par for computation of annual power consumption for determining the captive status. 17.4 Issue No.4:- We hold that the verification for determining ownership & consumption for CGP /captive users under Rule 3, being an independent exercise, has to be done on annual basis, at the end of financial year. Judgment of Appeal No.131 of 2020 17.5 Issue No.5:- We hold that the directions contained in Paras 6.6.3 and 7.8.2 of the impugned order passed by the State Commission are in disregard to Rule 3 of the Electricity Rules and hence, cannot be sustained. 17.6 Issue No.6:- We hold that as per settled principles of law, there cannot be retrospective application of the procedure formulated under the impugned order for

https://www.mhc.tn.gov.in/judis W.P.No.18252 of 2017

verification of status of CGP/captive users. However, it is clarified that for the past years, the second Respondent/TANGEDO can verify data for the purpose of determination of captive plant status on the basis of data already furnished by CGP/Captive users while availing the open access.

17.7 Issue No.7:- We set aside the directions contained in Para 7.6.9 of the impugned order wherein the State Commission has held that, in the event, the weightage average of shareholding of captive users changes within a financial year, then the same has to be intimated within ten days to the second respondent/TANGEDCO, otherwise the said licensee would proceed to verify captive status without considering weightage average

shareholding.”

3. Against the above said order, an appeal was preferred before the

Hon'ble Supreme Court and the same has been pending. Therefore, the

learned counsel for the petitioner submits that the issue in the present case as

well as the issue pending before the Supreme Court in Diary No.21493 of

2021 is one and the same. In the event any order is passed in the appeal by

the Hon'ble Supreme Court, the same would squarely apply to the present

Writ Petition as well. Therefore, the learned counsel would pray that this

Writ Petition may be closed by recording that whatever the order is to be

https://www.mhc.tn.gov.in/judis W.P.No.18252 of 2017

passed by the Hon'ble Supreme Court in the above appeal would also apply

to the present Writ Petition as well.

4. In view of the above submission made by the petitioner that the

issue in the present writ petition as well as the issue in the appeal pending

before the Hon'ble Supreme Court in Diary No.21493 of 2021 is one and the

same and any order, which is going to be passed by the Hon'ble Supreme

Court in the appeal, will hold good in respect of the present Writ Petition as

well.

5. With the above observation, this Writ Petition is disposed of. No

costs. Consequently, connected miscellaneous petitions are closed.

09.12.2021 Index: Yes/No Internet:Yes/No Speaking order/Non Speaking Order jd

https://www.mhc.tn.gov.in/judis W.P.No.18252 of 2017

To

1.The Chairman and Managing Director, Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), 10th Floor, 144, Anna Salai, Chennai 600 002.

2.The Director-Distribution, TANGEDCO, 10th Floor, Anna Salai, Chennai 600 002.

3.The Chief Financial Controller-Revenue TANGEDCO 7th Floor, 144, Anna Salai Chennai 600 002.

4.The Secretary, Tamilnadu Electricity Regulatory Commission, 19-A, Rukumini Lakshmipathy Salai, Egmore, Chennai 600 008.

5.The Superintending Engineer, Mettur Electricity Distribution Circle, TANGEDCO, Mettur Dam.

https://www.mhc.tn.gov.in/judis W.P.No.18252 of 2017

KRISHNAN RAMASAMY,J.

jd

W.P.No.18252 of 2017 and W.M.P.Nos.19833 to 19835 of 2017

09.12.2021

https://www.mhc.tn.gov.in/judis

 
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