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Tirupur Vijayalakshmi Spinning ... vs Tamil Nadu Electricity ...
2022 Latest Caselaw 11264 Mad

Citation : 2022 Latest Caselaw 11264 Mad
Judgement Date : 28 June, 2022

Madras High Court
Tirupur Vijayalakshmi Spinning ... vs Tamil Nadu Electricity ... on 28 June, 2022
                                                                       W.P.No.23838 of 2014

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                              DATED : 28.06.2022

                                                    CORAM

                            THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ

                                              W.P. No.23838 of 2014
                                             and W.M.P.No.1 to 2014


                     Tirupur Vijayalakshmi Spinning Mills,
                     HT SC.No.111,
                     S.F.No.35, 36, Polavapalayam, Gobi (T.K),
                     Erode (D.T.) Nambiyur-638 458,
                     Tirupur Rep. by its Director D.Dinesh Kumar           ... Petitioner

                                                       Vs.

                     1.Tamil Nadu Electricity Regulatory Commission,
                       Rep. By its Secretary,
                       19A, Rukmani lakshmipathy Salai,
                       Marshalls Road,
                       Egmore, Chennai-600 008.

                     2.The Chairman,
                       Tamil Nadu Generation and Distribution
                       Corporation Limited, 144, Anna Salai,
                       Chennai 600 002.

                     3.Director Finance,
                       Tamil Nadu Generation and Distribution
                       Corporation Limited, 144, Anna Salai,
                       Chennai 600 002.


                     1/7

https://www.mhc.tn.gov.in/judis
                                                                               W.P.No.23838 of 2014

                     4.The Chief Financial Controller,
                       Tamil Nadu Generation and Distribution
                       Corporation Limited, 144, Anna Salai,
                       Chennai 600 002.

                     5.The Superintending Engineer,
                       TANGEDCO, Gobi Electricity Distribution Circle,
                       Gobichettipalayam.

                     6.The Superintending Engineer,
                       TANGEDCO,
                       Udumalpet Electricity Distribution Circle,
                       Udumalpet.                                            ... Respondents

                     PRAYER: Writ Petition filed under Article 226 of the Constitution of
                     India, praying to issue a Writ of Mandamus forbearing the respondent and
                     their men, agents from collecting current consumption charges, demand
                     charges and / or any arrears from the petitioner until the respondent makes
                     payment of the outstanding dues of Rs.33,02,862.75 for the year 2012-13
                     payable to the petitioner is getting paid or give adjustment in the current
                     consumption charges payable by the petitioner till the entire amount is
                     adjusted.


                                  For Petitioner    : Mr.S.P.Parthasarathy

                                  For Respondents : Mr.Abdul Kalam (for R2 to R6)
                                                   for TNEB

                                                    : No appearance (for R1)




                     2/7

https://www.mhc.tn.gov.in/judis
                                                                                      W.P.No.23838 of 2014

                                                            ORDER

Today, when the matter is taken up for hearing, the learned counsel

for the petitioner submitted that the issue raised in the present writ petition

is covered by the order passed by this Court in W.P.No.533 of 2015. The

relevant portions of the order is extracted hereunder:

“4. Rule 3(1)(a)(ii) of the Electricity Rules, 2005 requires that to qualify as a "captive generation power plant" under Section 8 read with Clause 8(2), power of not less than 51% of aggregate electricity generated on such plant determined on annual basis, must be consumed for captive use. During the period 2011-12 and 2012-13, the petitioner having not complied with the above requirement, consequently, impugned notices were issued seeking refund of the amount already paid to the petitioner towards unutilised banked energy.

5. It is submitted by the learned counsel for the petitioner that the above issue is no longer res-integra and stands resolved by a judgment of this Court in W.P.No.6112 of 2017 dated 25.01.2002 wherein reference was made to the order passed by the Tamil Nadu Electricity Regulatory Commission in D.R.P.No.18 of 2013 wherein similar demands were set aside on the premise that non-compliance with the requirement of

https://www.mhc.tn.gov.in/judis W.P.No.23838 of 2014

51% of electricity consumption for captive use under Rule 3(1)(a)(ii) of Electricity Rules, 2005 was only in view of the restrictions and control measures implemented by the respondent/ Board, over which the petitioner had no control nor can be found fault with. Relevant portion of the order of this Court wherein the order of Tamil Nadu Electricity Regulatory Commission was referred to is extracted below: "5..... At this juncture, it would be appropriate to extract the order passed by the Tamil Nadu Electricity Recovery Commission in D.R.P.No.18 of 2013. The relevant portion of the said order is reproduced hereunder: "11.15.8. The Commission is of the ell considered view that when the Government of Tamil Nadu, on the one hand, directed all the generating stations to operate at their maximum capacity to receive the power, and at the same time limited the allocation to the extent of 60% / 70% level with peak hour restriction and scheduled load shedding vide its letter dated 22.10.2008, we find that a consumer cannot be penalised. When a consumer is not given even 51% of his requirement, as stated supra, the Distribution licensee in our view cannot expect fulfilment of the conditions of 51% of consumption as required under Rule 3(1)(a).

11.15.9. Rule 3(1)(a) stipulates a power plant to satisfy both the conditions stated therein to qualify as a Captive Generating Plant "it is applicable under normal circumstances when the distribution/ transmission grid is open to the captive user without any restriction and not when there is no fault on the part of the captive user in

https://www.mhc.tn.gov.in/judis W.P.No.23838 of 2014

consuming power on its side and at a time when stringent measure was imposed both in the form of restricted Quota as well as grid restrictions. We find no merit in insisting on adherence of conditions under Rule 3 of the Electricity Rules, 2005 for a captive generating plant in such conditions.

In view of the above order, the impugned demand notice is set aside.”

2. Mr.Abul Kalam, learned Standing Counsel for the respondents

would also agree that the issue stands covered.

3. Following the above order passed by this court, this writ petition

stands allowed. The respondents are directed to settle the dues, if any, as a

result of this order, either by paying the sums due within a period of four

months from the date of receipt of a copy of this order or permitting

adjustment of the same in the future consumption charges. No costs.

Consequently, connected miscellaneous petition is closed.

The Writ Petition is disposed of with the above direction.

28.06.2022

Speaking (or) Non Speaking Order Index : Yes/ No Psa

https://www.mhc.tn.gov.in/judis W.P.No.23838 of 2014

To

1.The Secretary, Tamil Nadu Electricity Regulatory Commission, 19A, Rukmani lakshmipathy Salai, Marshalls Road, Egmore, Chennai-600 008.

2.The Chairman, Tamil Nadu Generation and Distribution Corporation Limited, 144, Anna Salai, Chennai 600 002.

3.The Director Finance, Tamil Nadu Generation and Distribution Corporation Limited, 144, Anna Salai, Chennai 600 002.

4.The Chief Financial Controller, Tamil Nadu Generation and Distribution Corporation Limited, 144, Anna Salai, Chennai 600 002.

5.The Superintending Engineer, TANGEDCO, Gobi Electricity Distribution Circle, Gobichettipalayam.

6.The Superintending Engineer, TANGEDCO, Udumalpet Electricity Distribution Circle, Udumalpet

https://www.mhc.tn.gov.in/judis W.P.No.23838 of 2014

MOHAMMED SHAFFIQ, J.

Psa

W.P. No.23838 of 2014

28.06.2022

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

 
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