Madras High Court
The Chairman And Managing Director vs M.M. Mohiuddin on 6 March, 2025
Author: S.M.Subramaniam
Bench: S.M.Subramaniam
2025:MHC:649
W.A.No.92 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 06.03.2025
CORAM :
THE HON'BLE MR.JUSTICE S.M.SUBRAMANIAM
AND
THE HON'BLE MR.JUSTICE K.RAJASEKAR
W.A.No.92 of 2024
1. The Chairman and Managing Director
TANGEDCO, No.825, Link Road
Anna Salai, Triplicane, Chennai 600 002
2. The Chief Engineer
TANGEDCO Distribution/Chennai North Region
Anna Salai, Chennai 600 002
3. The Executive Engineer
O & M/Anna Nagar North
TANGEDCO, Chennai 600 040
4. The Assistant Executive Engineer
TANGEDCO, O & M/Anna Nagar
CEDC West, 5th Street, H Block
Anna Nagar, Chennai 600 040 .. Appellants
v.
1. M.M. Mohiuddin
S/o.S.M.Darwaish Mohiuddin
Old No.97, New No.37, 3rd Main Road
R Block, Anna Nagar, Chennai 600 040
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W.A.No.92 of 2024
2. Mrs.Shameem Mohiuddin
Old No.97, New No.37, 3rd Main Road
R Block, Anna Nagar, Chennai 600 040
both rep.by Power of Attorney P.Kruthivas
S/o E.Panneerselvam, Director
M/s Pushkar Properties Private Limited
Flat No.1-A, Pushkar's K.V.Residency
Old No.3, New No.51, F Block
2nd Main Road, Anna Nagar East
Chennai 600 102 .. Respondents
Memorandum of Grounds of Writ Appeal filed under Clause 15 of the
Letters Patent against the order dated 24.07.2023 passed in W.P.No.19383
of 2020.
For Appellants :: Mr.P.Kumaresan
Additional Advocate General
assisted by Ms.Sindhuza M.S
for Mr.L.Jaivenkatesh
For Respondents :: Mr.D.Stephen
JUDGMENT
(Judgment of the Court was made by S.M.SUBRAMANIAM,J.)
Under assail is the order dated 24.07.2023 passed in Writ Petition
No.19383 of 2020. The official respondents in the writ petition are the
appellants before this Court.
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2. The private respondents have instituted writ proceedings
challenging the charges demanded by TANGEDCO for providing electricity
service connections for the 12 dwelling units constructed by the
respondents.
3. The writ Court allowed the writ petition on the ground that the
charges demanded from the building contractors are exorbitant and directed
the appellant-TANGEDCO to refund a sum of Rs.31,54,390/- from the
deposit made by the respondents i.e., Rs.32,65,990/-.
4. Mr.P.Kumaresan, learned Additional Advocate General appearing
on behalf of the appellants would mainly contend that the description of
charges as demanded by the TANGEDCO is in accordance with the
provisions of the Electricity Act and Regulations. TANGEDCO is
empowered to collect the expenses met by the authorities for providing
electricity service connections to the consumers. When the Act and
Regulations permit the TANGEDCO to collect the expenses, the writ Court
has erroneously issued a direction to refund the deposit already made by the
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respondents for providing electricity service connections to the 12 dwelling
units constructed by them.
5. The learned counsel appearing on behalf of the respondents would
oppose by stating that the charges collected are not in consonance with the
ratio laid down by the Tamil Nadu Electricity Regulatory Commission.
TANGEDCO has charged exorbitantly over and above the expenses met by
the authorities. Thus the learned Judge is right in issuing a direction to
refund the amount already deposited by the respondents for providing
electricity service connections.
6. This Court considered the submissions made between the parties to
the lis. The Tamil Nadu Electricity Regulatory Commission in the case of
Mrs.Tara Murali v. Tamil Nadu Generation and Distribution Corporation
Limited (TANGEDCO) and others (M.P.No.2 of 2021 dated 9.11.2021)
elaborately considered the issue relating to service connection charges. The
Regulatory Commission considered the provisions of the Electricity Act and
the Regulations framed thereunder including the Electricity Distribution
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Code. In paragraph 8.7, the Commission, referring to the provisions of the
Electricity Act and the Electricity Distribution Code, held as follows:-
“8.7. Section 46 (Power to recover expenditure) of the Electricity
Act 2003 enables the Commission as follows:
“The State Commission may, by regulations, authorize
a distribution licensee to charge from a person
requiring a supply of electricity in pursuance of
section 43 any expenses reasonably incurred in
providing any electric line or electrical plant used for
the purpose of giving that supply.”
8.8. Under Chapter 7: “Recovery of Charges” of the Tamil Nadu
Electricity Distribution Code, the regulation 44 reads as follows:
“44. The Licensees are entitled to collect the charges from
a person requiring supply of electricity any expenses
reasonably incurred in providing any electrical line or
electrical plant used for the purpose of giving that supply.
These charges have also to be reviewed either periodically
or at times of an urgent need for a revision. The consumers
are liable to pay such charges as applicable and at the
rates specified by the Commission from time to time
through separate orders/ notifications. The various charges
to be collected are furnished in the following clauses.
45(1) : Service Connection Charges: Regarding the recovery
relating to service connection charges:
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(i) For connecting up an installation, the Licensee shall be entitled
to charge the consumer the actual cost of materials upto meter
board, labour, transport plus overhead charges.
(ii) Extension, improvement or alteration to service lines to meet
any additional demand will be charged on the same basis. In each
case, the consumer will be furnished with an estimate of the cost of
the work and this amount is payable in advance. On completion of
the work, a bill for the actual amount payable will be forwarded to
the consumer and any difference shall be paid by the consumer or
will be refunded by the Licensee as the case may be.
(iii) The estimate for service connection charges may also include
the service connection charges for metering referred to in
regulation 45(2). The Licensee shall give due credit for the
materials if any supplied by the consumers.
(2) Service connection charges for metering. The licensee is
authorized to collect service connection charges for metering.
46. Meter Security Deposit: The Licensee is authorized to collect
security for the price of meter from LT/HT consumers at the rates
specified by the Commission from time to time and enter into an
agreement for hiring of the meter. The Licensee may permit the
consumer to install his/her own meter. However, it shall be
calibrated by the Licensee.
Note : -
1. The above rate shall also apply to L.T.Temporary Supply.
2. Interest is payable on the above deposit at the rate specified by
the Commission from time to time. The deposit shall be refunded
after termination of service agreement, as per rules.
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3. If a consumer elects to purchase his own meter, he is not
required to pay Meter Security Deposit.
47. Development Charges: The Licensee is authorized to collect
development charges from LT/HT consumers at the rates specified
by the Commission from time to time.
Note:— (1) The above development charges (one time payment)
shall be collected from all applicants both for new and additional
loads.
(2) For additional loads applied in the existing service the same
rates are applicable.
(3) In case of conversions from Single Phase to Three Phase the
difference in the development charges shall be collected provided
the initial development charges were paid while availing Single
Phase Service.
(4) One fourth of the development charges shall be applied to
temporary supplies.
48. Earnest Money Deposit (EMD) :The Licensee is authorized to
collect Earnest Money Deposit from all applicants for HT and LT
industrial applicants at the rates specified by the Commission
from time to time. This will be adjusted against the quantum of
initial Security Deposit payable by the applicants before availing
supply.
49. Security Deposit :The Licensee is authorized to collect initial
security deposit at the rates specified by the Commission from time
to time. Wherever Earned Money Deposit has been adjusted
against the initial security deposit the balance if any will be
collected from the applicants before giving supply”.
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7. Regulation 45(1) of the Electricity Distribution Code speaks about
the service connection charges. Sub-clause (i) denotes that for connecting of
any installation, the licensee shall be entitled to charge the consumer the
actual cost of materials upto meter board, labour, transport plus overhead
charges. Sub-clause (iii) stipulates that the estimate for service connection
charges may also include the service connection charges for metering
referred to in regulation 45(2). The licensee shall give due credit for the
materials if any supplied by the consumers. Various other charges
admissible under the Act and the Code are also considered by the
Regulatory Commission.
8. Perusal of the description of charges demanded by TANGEDCO in
the case of the respondents are in consonance with the provisions of the
Electricity Act and the Electricity Distribution Code. If at all any
discrepancy in the matter of assessment or otherwise, the respondents ought
to have approached the Consumer Grievance Redressal Forum constituted
under Regulation 18 of the Electricity Supply Code. The Consumer
Grievance Redressal Forum consisting of expert members, will be in a
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better position to assess the correctness of the charges demanded by
TANGEDCO authorities. Contrarily the High Court, in exercise of the
powers of judicial review under Article 226 of the Constitution of India,
cannot adjudicate the disputed facts relating to certain technical assessments
and such matters are to be left to the experts for forming a final opinion.
The factual findings made by the Consumer Grievance Redressal Forum and
the Ombudsman thereafter would be of greater assistance to the writ Court
to exercise the powers of judicial review in an effective manner. Thus the
writ petitions filed challenging such nature of demands are not entertainable
in normal circumstances and in exceptional cases, where there is a glaring
mistake, then, the writ Court would be in a position to intervene and grant
necessary relief(s).
9. In the present case, the writ order impugned is bereft of relevant
provisions of the Act and the Code. Thus this Court is inclined to interfere.
Granting liberty to the respondents to approach the Consumer Grievance
Redressal Forum and thereafter, if aggrieved, to the Ombudsman, the
impugned writ order dated 24.07.2023 in Writ Petition No.19383 of 2020 is
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set aside and the writ appeal stands allowed. The respondents, in the event
of approaching the Consumer Grievance Redressal Forum, the period in
which the writ proceedings and writ appeals are pending before this Court is
to be taken into account to condone the delay. Consequently, C.M.P.No.519
of 2024 is closed. No costs.
Index : yes (S.M.S.,J.) (K.R.S.,J.)
Neutral citation : yes 06.03.2025
ss
To
1. The Chairman and Managing Director
TANGEDCO, No.825, Link Road
Anna Salai, Chennai 600 002
2. The Chief Engineer
TANGEDCO Distribution/Chennai North Region
Anna Salai, Chennai 600 002
3. The Executive Engineer
O & M/Anna Nagar North
TANGEDCO, Chennai 600 040
4. The Assistant Executive Engineer
TANGEDCO, O & M/Anna Nagar
CEDC West, 5th Street, H Block
Anna Nagar, Chennai 600 040
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S.M.SUBRAMANIAM,J.
AND
K.RAJASEKAR,J.
ss
06.03.2025
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