Madras High Court
M/S.K.G.Denim Limited vs The Government Of Tamil Nadu on 15 July, 2025
Author: N.Anand Venkatesh
Bench: N.Anand Venkatesh
W.P. No. 1382 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 15.07.2025
CORAM
THE HON'BLE Mr. JUSTICE N.ANAND VENKATESH
W.P. No. 1382 of 2021
and
W.M.P. Nos. 1552 and 16214 of 2021
M/s.K.G.Denim Limited
Rep. by its Authorised Signatory R.Selva Kumar
Then Thirumalai, Mettupalayam
Coimbatore District – 641 302. … Petitioner
-vs-
1. The Government of Tamil Nadu
Rep. by its Secretary to the Government
Energy Department, Secretariat
Fort St. George, Chennai-600009.
2. The Chief Electrical Inspector to Government
Thiru-Vi-Ka Industrial Estate
Guindy, Chennai-600032.
3. The Senior Electrical Inspector
Corporation Commercial Complex
Dr.Nanjappa Road, Coimbatore Central
Coimbatore-641018.
4. The Electrical Inspector
Office of the Electrical Inspectorate
4/13B, SRS Puram, Kalangan Road
Sulur, Coimbatore – 641 402. ... Respondents
Prayer:- Writ Petition filed under Article 226 of the Constitution of India,
1950, praying to issue a Writ of Certiorari, to call for the records of the
1/12
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W.P. No. 1382 of 2021
impugned letter in Letter No.1470/Mi/Aa/Sulur/A1/Minvari/2020 dated
23.07.2020 issued by the fourth respondent and quash the same.
For Petitioner : M/s.S.Varsha for Mr.Naveen Kumar Murthi
For Respondents : Mr.R.Ramanlal, AAG
Asst. by Ms.P.Aishwarya, GA (RR1 & 2)
R3 and R4 – No appearance
ORDER
This writ petition has been filed challenging the impugned letter
No.1470/Mi/Aa/Sulur/A1/Minvari/2020 dated 23.07.2020 issued by the fourth
respondent.
2. When the writ petition came up for hearing on 25.01.2021, this Court
had passed the following order:-
“ The petitioner is a public limited Company involved in
the manufacture of textiles. The petitioner company is also
involved in the business of generation and distribution of
energy for captive use. The petitioner's power plant had been
converted into a Bio mass power plant and the same would be
exempted from paying E-tax as per G.O.Ms.No.18 Energy (A2)
dated 01.04.2015 as the bio mass generating plants are
exempted from paying electricity tax. But by the impugned
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letter dated 23.07.2020, the 4th respondent demanded a sum of
Rs.26,87,584/- towards captive consumption charges with
interest at 12% . The exemption sought for by the petitioner for
payment of E-tax was rejected stating that exemption for
payment of E-tax was granted only to Bio mass energy
generating plant, generating the same for sale and not for self
consumption. The learned counsel for the petitioner relied
upon similar order passed by this Court in WMP.Nos.15474
and 15475 of 2020 in W.P.No.12554 of 2020 dated 15.09.2020,
wherein similar impugned orders were stayed by this Court on
certain conditions.
2 Mr.N.Shanmugasundaram, learned Special
Government Pleader takes notice for the1st respondent.
Mr.N.Damodharan, learned Standing Counsel takes notice for
2nd to 4th respondents. They fairly conceded that similar writ
petitions on the very same issue are pending before this Court
in W.P.Nos.6429 & 6432 of 2020 etc., batch.
3. On the very same issue this Court has passed an order
in W.P. No.5916 of 2015 etc.., dated 14.09.2018 which reads
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as follows;
“18. In view of the discussions made in the
aforementioned paragraphs, this Court is of the opinion
that the Regulatory Commission has to undertake the
process of revision either suo-moto or through an
application if any filed before the commission and conduct
the adjudicative process by issuing notice to all the
stakeholders and after hearing the parties aggrieved,
decision shall be taken on merits and in accordance with
law. The compliance of principles of natural justice has
been contemplated in the business regulations, as stated
supra. Thus Electricity Regulatory Commission is bound by
that and they have to follow the procedures and thereafter
take a decision and pass orders on merits and in
accordance with law in respect of the withdrawal of the
concession of the Deemed Demand Charges in respect of
the writ petitioners. However, it is made clear that the
observations made in this judgment will not affect the
independent adjudication if any undertaken by the
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Electricity Regulatory Commission in accordance with the
procedures contemplated. The Electricity Regulatory
Commission is at liberty to decide the merits and de-merits
independently and pass orders without causing undue
delay in view of the fact that the concession has been
already cancelled in respect of other categories.
Accordingly the impugned order passed by the second
respondent in letter No.CFC/FC/DFC/
AAO.HT/AS.3/REV/D.N.11513 dated 29.07.2013 is
quashed and these writ petitions are allowed. No costs.
Consequently connected miscellaneous petitions are also
closed”.
4. As against this order, Tamil Nadu Electricity
Board has preferred appeals in W.A.Nos.2539 and 2540 of
2020, wherein the Division Bench of this Court, passed an
interim order dated 19.11.2018 which reads as follows;
“ 7. Hence, there shall be an order of interim stay as
prayed for till 17.12.2018. It is also brought to the notice of
this Court by the learned Advocate General that during the
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pendency of the writ petitions interim stay has been
granted subject to the condition that the writ petitioners
pay 50% of the amount demanded within a stipulated time.
8. Therefore, in the light of the above facts and
circumstances, and reasons assigned above, this Court is
of the considered view that the same arrangement shall
continue till the disposal of the writ appeals for the reason
that appellant in the event of success in these appeals may
not be able to recover it and there may be possibility of
respondents/writ petitioners to wind up operations due to
vagaries of business or other reasons. Therefore, without
prejudice to the rights and contentions, the first
respondent/writ petitioners shall continue to pay 50% of
the demand made as per the impugned orders/demand, the
subject matter of challenge in the writ petitions, within a
period of two weeks from the date of each demand. It is
made clear that the amount collected by virtue of the
interim order in the writ petitions as well as in these writ
appeals, by the appellant is also subject to the result of
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these writ appeals, and if the appellant fails, they are liable
to refund the Deemed Demand Charges already collected
from the first respondent/writ petitioners. Call on
17.12.2018.”
5. In view of the interim orders passed by the Division
Bench of this Court staying the operation of the proceedings
and permitting the writ petitioners to pay 50% of the demand
made as per the impugned orders, the other writ petitions have
also been entertained. The other writ petition in WP.No.12554
of 2020 was entertained and an order of interim injunction was
granted on condition that the petitioner should pay 50% of the
amount demanded within the stipulated time.
6. In view of the above orders passed by this Court, there
shall be an order of interim stay of the impugned order dated
23.07.2020 on condition that the petitioner shall pay 50% of
the amount demanded within a period of two weeks from the
date of receipt of a copy of this order.
7. Post this writ petition along with connected
W.P.Nos.6429 & 6432 of 2020 etc., batch after four weeks.”
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3. When the matter came up for hearing on 17.06.2025, this Court had
passed the following order:-
“ When this writ petition came up for hearing on 10.06.2025,
this Court directed this writ petition to be posted along with
WP.Nos.6429 of 2020, 6432 of 2020 and WP.No.12554 of 2020.
2.When the matter was taken up for hearing today, it was
brought to the notice of this Court that W.P.Nos.6429 and 6432 of
2020 had already been disposed of by this Court by an order dated
18.08.2021. Insofar as WP.No.12554 of 2020 is concerned that
writ petition was listed with a batch of writ petitions in
WP.Nos.6776 etc., of 2018 and those writ petitions were disposed
of by order dated 28.10.2021. Hence, it must be seen as to whether
this writ petition can also be disposed of in terms of the above
orders.
3.The learned counsel for the petitioner sought for sometime
to take instructions. The learned Government Advocate appearing
on behalf of the respondents submitted that the interim order
passed by this Court directing the petitioner to pay 50% of the
amount demanded, was not complied with and to substantiate the
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same, the stand that was taken in the counter affidavit filed by the
respondents along with the vacate stay petition was pointed to this
Court.
4.The learned counsel for the petitioner shall take specific
instructions as to whether the interim order passed by this Court
has been complied with.
5.Post this writ petition finally on 24.06.2025.”
4. When the matter was taken up for hearing on 01.07.2025, this Court
had passed the following order:-
“ The learned counsel for the petitioner seeks for sometime
in this case to take instructions from the petitioner. Even in the
previous order that was passed on 17.06.2025, this Court made
it very clear that the interim order passed by this Court has to
be complied with.
2.In view of the above, post this writ petition finally on
15.7.2025.”
5. When this writ petition came up for hearing today, the learned counsel
for the petitioner, on instructions, submitted that the petitioner is not able to
deposit the 50% amount demanded as directed by this Court. The learned
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counsel further submitted that the petitioner is facing financial difficulties.
Hence, the petitioner has approached the respondents and requested for
payment of amounts in installments.
6. In the considered view of this Court, the fact that the petitioner has not
complied with the interim order passed by this Court due to the alleged
financial difficulties faced by the petitioner, warrants this Court not to exercise
its discretion under Article 226 of the Constitution of India. If the petitioner has
already negotiated with the respondents to pay the amount defaulted in
installments, the petitioner shall follow it again. This Court is not inclined to
deal with the writ petition on merits.
7. Accordingly, this writ petition is disposed. Consequently, connected
miscellaneous petitions are closed. No costs.
15.07.2025
Index: Yes/No
Internet: Yes/No
Speaking /Non-speaking order
NCC : Yes / No
Maya
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To
1. The Secretary to the Government of Tamil Nadu
Energy Department, Secretariat
Fort St. George, Chennai-600009.
2. The Chief Electrical Inspector to Government
Thiru-Vi-Ka Industrial Estate
Guindy, Chennai-600032.
3. The Senior Electrical Inspector
Corporation Commercial Complex
Dr.Nanjappa Road, Coimbatore Central
Coimbatore-641018.
4. The Electrical Inspector
Office of the Electrical Inspectorate
4/13B, SRS Puram, Kalangan Road
Sulur, Coimbatore – 641 402.
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N.ANAND VENKATESH, J.
Maya
Dated : 15.07.2025
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