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M/S.Noble Tech Industries Pvt Ltd vs Tamil Nadu Generation And ...
2023 Latest Caselaw 2214 Mad

Citation : 2023 Latest Caselaw 2214 Mad
Judgement Date : 10 March, 2023

Madras High Court
M/S.Noble Tech Industries Pvt Ltd vs Tamil Nadu Generation And ... on 10 March, 2023
    2023:MHC:1072

                                                                        W.P.Nos.11510 to 11512 of 2017

                                    IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                 DATED : 10.03.2023

                                                       CORAM

                           THE HONOURABLE MR.JUSTICE S.M.SUBRAMANIAM

                                            W.P.Nos.11510 to 11512 of 2017
                                                        and
                                           W.M.P.Nos.12490 to 12498 of 2017

                     1.M/s.Noble Tech Industries Pvt Ltd.,
                       HTSC. 208
                       No.6/9 Kasthuri Estate, Third Street,
                       Poes Garden, Chennai – 600 086.
                       repd its Authorised Signatory C.Ravi
                                                                  ... Petitioner
                                                                      (in WP.No.11510 of 2017)

                     2.M/s.Noble Tech Industries Pvt Ltd.,
                       HTSC. 213
                       No.6/9 Kasthuri Estate, Third Street,
                       Poes Garden, Chennai – 600 086.
                       repd its Authorised Signatory C.Ravi
                                                                  ... Petitioner
                                                                      (in WP.Nos.11511 of
                     2017)

                     3.M/s.Noble Tech Industries Pvt Ltd.,
                       HTSC. 213 (Generator)
                       No.6/9 Kasthuri Estate, Third Street,
                       Poes Garden, Chennai – 600 086.
                       repd its Authorised Signatory C.Ravi
                                                                  ... Petitioner
                                                                      (in WP.Nos.11512 of
                     2017)


                     Page 1 of 12

https://www.mhc.tn.gov.in/judis
                                                                           W.P.Nos.11510 to 11512 of 2017

                                                          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, 144, Anna Salai
                       Chennai 600 002.

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

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

                     5.The Superintending Engineer,
                       Kanchipuram Electricity Distribution Circle,
                       Anna Maaligai/Vellore Road,
                       Olimuhamedpet / Kanchipuram.                     ... Respondents

(in all WPs)

Prayer W.P.No.11510 of 2017: Writ Petition filed under Article 226 of the Constitution of India for issuance of a 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/

https://www.mhc.tn.gov.in/judis W.P.Nos.11510 to 11512 of 2017

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.CGP Status/D.334/2017 dated 07.04.2017; (v) Memo No.CFC/ REV/ FC/REV/AS.3/F.CGP/D.338/17 dated 15.04.2017; and (vi) Memo No.CEF/REV/FC/REV /AS.3/F.CGP/ D.340/17 dated 15.04.2017 and L.R.No.0394SE/ KEDC/ DFC/ F.CGP Status/2017 dated 19.04.2017 issued by the 5th respondent and quash the same as being contrary to law 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 Tamil Nadu Electricity Regulatory Commission for directions and determination of the status of the Captive Generating Plants as stipulated under the provisions of Electricity Rules, 2005 and confirmed by the binding judgments of the Hon'ble APTEL.

Prayer W.P.No.11511 of 2017: Writ Petition filed under Article 226 of the Constitution of India for issuance of a 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)

https://www.mhc.tn.gov.in/judis W.P.Nos.11510 to 11512 of 2017

Memo No.CFC/REV/FC/FC/REV/F.CGP Status/D.334/2017 dated 07.04.2017; (v) Memo No.CFC/ REV/ FC/REV/AS.3/F.CGP/D.338/17 dated 15.04.2017; and (vi) Memo No.CFC/REV/FC/REV /AS.3/F.CGP/ D.340/17 dated 15.04.2017 and L.R.No.0392SE/ EDC/ DFC/ F.CGP Status/2017 dated 19.04.2017 issued by the 5th respondent and quash the same as being contrary to law 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 Tamil Nadu Electricity Regulatory Commission for directions and determination of the status of the Captive Generating Plants as stipulated under the provisions of Electricity Rules, 2005 and confirmed by the binding judgments of the Hon'ble APTEL.

Prayer W.P.No.11512 of 2017: Writ Petition filed under Article 226 of the Constitution of India for issuance of a 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.CGP Status/D.334/2017 dated 07.04.2017; (v) Memo No.CFC/ REV/ FC/REV/AS.3/F.CGP/D.338/17 dated 15.04.2017; and (vi) Memo No.CFC/REV/FC/REV /AS.3/F.CGP/ D.340/17

https://www.mhc.tn.gov.in/judis W.P.Nos.11510 to 11512 of 2017

dated 15.04.2017 and L.R.No.0395SE/ KEDC/ DFC/ F.CGP Status/2017 dated 19.04.2017 issued by the 5th respondent and quash the same as being contrary to law 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 Tamil Nadu Electricity Regulatory Commission for directions and determination of the status of the Captive Generating Plants as stipulated under the provisions of Electricity Rules, 2005 and confirmed by the binding judgments of the Hon'ble APTEL.

                                        For Petitioner           : Mr.M.Saravana Kumar
                                                                   (in all WPs)

                                        For Respondents          : Mr.L.Jaivenkatesh
                                                                   [For TANGEDCO]
                                                                   (in all WPs)


                                                         COMMON ORDER

These writ petitions have been 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

https://www.mhc.tn.gov.in/judis W.P.Nos.11510 to 11512 of 2017

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, 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

https://www.mhc.tn.gov.in/judis W.P.Nos.11510 to 11512 of 2017

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.

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.Nos.11510 to 11512 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 Hon'ble Supreme Court in Diary

https://www.mhc.tn.gov.in/judis W.P.Nos.11510 to 11512 of 2017

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 these

Writ Petitions as well. Therefore, the learned counsel would pray that these

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

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

these present Writ Petitions as well.

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

in these present writ petitions 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 these present Writ Petitions

as well.

5. With the above observation, these Writ Petitions are disposed of. No

costs. Consequently, connected Miscellaneous Petitions are closed.

10.03.2023 Jeni Index : Yes Speaking order Neutral Citation : Yes

https://www.mhc.tn.gov.in/judis W.P.Nos.11510 to 11512 of 2017

https://www.mhc.tn.gov.in/judis W.P.Nos.11510 to 11512 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, 144, Anna Salai Chennai 600 002.

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

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

5.The Superintending Engineer, Kanchipuram Electricity Distribution Circle, Anna Maaligai/Vellore Road, Olimuhamedpet / Kanchipuram.

https://www.mhc.tn.gov.in/judis W.P.Nos.11510 to 11512 of 2017

S.M.SUBRAMANIAM, J.

Jeni

W.P.Nos.11510 to 11512 of 2017

10.03.2023

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

 
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