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M/S Globecast Steel Limited vs The Tamil Nadu Electricity Board
2023 Latest Caselaw 15713 Mad

Citation : 2023 Latest Caselaw 15713 Mad
Judgement Date : 6 December, 2023

Madras High Court

M/S Globecast Steel Limited vs The Tamil Nadu Electricity Board on 6 December, 2023

Author: D.Bharatha Chakravarthy

Bench: Sanjay V.Gangapurwala, D.Bharatha Chakravarthy

                                                                       WA No.3292 of 2023

                                    IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                DATED:    06.12.2023

                                                       CORAM

                             THE HON'BLE MR.SANJAY V.GANGAPURWALA, CHIEF JUSTICE
                                                         AND
                                  THE HON'BLE MR.JUSTICE D.BHARATHA CHAKRAVARTHY

                                                WA No.3292 of 2023

                     M/s Globecast Steel Limited,
                     Formerly known as
                     M/s Kaleidoscope Energy Limited,
                     1-F, Century Plaze, 560-562, Anna Salai,
                     Teynampet, Chennai-600 018
                     Rep by its Director.
                     (Cause-title accepted vide order of Court
                      dated 17.10.2023 made in CMP.No.23395/2023)      .. Appellant


                                                         -vs-


                     1. The Tamil Nadu Electricity Board,
                        Rep by its Chairman,
                        No.88, Anna Salai, Chennai-600 002.

                     2. The Chief Engineer,
                        The Tamil Nadu Electricity Board,
                        Vellore.

                     3. The Superintending Engineer,
                        The Tamil Nadu Electricity Board,
                        Vellore Electricity Distribution Circle,
                        Gandhi Nagar, Vellore – 6.



                     Page 1 of 6


https://www.mhc.tn.gov.in/judis
                                                                                 WA No.3292 of 2023



                     4. The Junior Engineer,
                        The Tamil Nadu Electricity Board,
                        SIPCOT, Ranipet.                                          .. Respondents


                     Prayer: Writ appeal filed under Clause 15 of the Letters Patent
                     against the order of the learned Single Judge dated 01.09.2022
                     passed in W.P.No.27348 of2005.


                                  For the Appellant       :     Mr.AR.L.Sundaresan
                                                                Senior Counsel for
                                                                Mr.AR.Karthiklakshman

                                  For the Respondents     :     Mr.Madhusudhanan

                                                              *****

                                                          JUDGMENT

(Delivered by the Hon'ble Chief Justice)

The present appellant is the original writ petitioner. The

petitioner filed the writ petition challenging the communication dated

27.07.2005 seeking further directions to provide the electricity

service connection to the petitioner for Plot Nos.31, 32 and 47 in the

Industrial Estate, SIPCOT, Ranipet.

2. The petitioner is the purchaser of the subject writ property in

an auction conducted by the bank. It appears that there were

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

electricity dues payable to the present respondents by the erstwhile

owner. The petitioner applied to the first respondent for grant of

electricity service connection. The petitioner was informed about the

arrears in respect of the said premises payable to the first respondent

and was directed to pay the arrears. Aggrieved thereby, the writ

petition was filed.

3. The learned Single Judge referring to Clause 6.10 of the

Terms and Conditions of Supply and the provisions of the Electricity

Act, 2003 dismissed the writ petition. Aggrieved thereby, the present

appeal.

4. We have heard Mr.AR.L.Sundaresan, learned senior counsel

for the appellant and Mr.Madhusudhanan, learned counsel for the

respondents.

5. The issue in the present matter is no longer res integra. The

Apex Court in the case of K.C.Ninan vs. Kerala State Electricity

Board, reported in 2023 SCC OnLine SC 663, had held that the

purchaser of the property in auction would be liable to pay the

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

electricity dues of the erstwhile owner. In Para 340 of the said

judgment, the Apex Court observed as under:

“Taking all facts and circumstances into consideration, including the lapse of more than two decades since the appeals were filed before this Court and the equities arising in favour of one party or the other, we direct the Electric Utilities to waive the outstanding interest accrued on the principal dues from the date of application for supply of electricity by the auction purchasers.”

6. The Apex Court directed the Electric Utilities to waive the

outstanding interest accrued on the principal dues from the date of

application for supply of electricity by the auction purchasers.

7. In light of that, we pass the following order:

1. The petitioner/appellant would be liable to pay the

electricity dues of the erstwhile owner to respondent

No.1;

2. The respondent authorities shall not charge interest on

the amount outstanding from the date of application made

by the petitioner/appellant;

3. The parties would be governed by the judgment of the

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

Apex Court in the case of K.C.Ninan, referred supra.

The writ appeal is, accordingly, disposed of. There will be no

order as to costs.

                                                           (S.V.G., CJ.)             (D.B.C., J.)
                                                                           06.12.2023
                     Index                   : Yes/No
                     Neutral Citation        : Yes/No
                     sra


                     To

                     1. The Chairman,
                        Tamil Nadu Electricity Board,

No.88, Anna Salai, Chennai-600 002.

2. The Chief Engineer, The Tamil Nadu Electricity Board, Vellore.

3. The Superintending Engineer, The Tamil Nadu Electricity Board, Vellore Electricity Distribution Circle, Gandhi Nagar, Vellore – 6.

4. The Junior Engineer, The Tamil Nadu Electricity Board, SIPCOT, Ranipet.

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

THE HON'BLE CHIEF JUSTICE AND D.BHARATHA CHAKRAVARTHY, J.

(sra)

06.12.2023

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

 
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