Telangana High Court
M/S. Rain Cements Limited, vs Telangana State Southern Power ... on 20 February, 2025
Author: Surepalli Nanda
Bench: Surepalli Nanda
HON'BLE MRS JUSTICE SUREPALLI NANDA
WRIT PETITION No.5098 OF 2025
ORDER:
Heard Sri Adinarayana, learned Senior Designated
Counsel representing Sri Mannam Sridhar, learned
counsel, appearing for the petitioner and Sri N.
Sreedhar Reddy, learned Standing Counsels for
TSSPDCL appearing on behalf of the respondent Nos.1
and 2.
2. The petitioner approached this Court with the
following prayer:
" ..... to pass an order or orders or writ or direction
more particularly one in the nature of Writ of
Mandamus declaring the action of Respondents in
issuing demands for payment of Cross Subsidy
Surcharge (CSS) for the FY 2005-06 to 2014-15
vide Lr.No.SE/OP/SPRT/SAO/JAO/HT/D No.
241/2024 dated 06/02/2025 issued by the 2nd
Respondent purported to be based on the Tariff
Order dated 30/08/2024 issued by the Telangana
Electricity Regulatory Commission determining the
CSS for FY 2005-06 to 2014-15 as arbitrary,
illegal,contrary to the Judgment dated 19/12/2023
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2 WP_5098_2025
of this Honourable Court in W.P. No. 14918 of
2006 and batch, provisions of the
Electricity Act, 2003, besides being violative of the
petitioner's rights guaranteed under Articles 14, 19
(1) (g) of the Constitution of India and
consequently set aside the same and pass...".
3. The case of the petitioner, in brief, is that the petitioner
company is engaged in the business of manufacture and sale
of cement. The petitioner had entered into a High Tension
(HT) Agreement with the 1st respondent for power supply
with a contracted Maximum Demand (CMD) of 12500 KVA/
HP. The petitioner company was purchasing power from the
generator M/s. Rain CII Carbon (Vizag) Limited. Section 42
(2) of the Electricity Act, 2003 mandates the State Electricity
Commissions to implement Open Access in phases including
cross-subsidies and other operational constraints and sales of
electricity by such generating companies were not subject to
any Surcharge. Following the issuance of the Common Order
by the learned TGERC, the 2nd respondent issued a demand
notice vide Lr.No. SE/OP/SPRT/SAO/JAO/HT/D.No.241/ 2024,
dated 06.02.2025. The demand notice sought payment of
Rs.11,81,93,501/- (Rupees Eleven Crores Eighty one Lakhs
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3 WP_5098_2025
Ninety Three Thousand Five Hundred and One only) as
CSS for the year FY 2005-06 to FY 2014-15 with a clear
stipulation that failing to do so would result in the surcharges
being raised as per existing rules without further notice and
service would be disconnected. It is further the case of the
petitioner that the impugned demand raised by the
respondents is a clear violation of Electricity (Removal of
Difficulties) Second Order, 2005 and a direct contravention of
the orders passed by this Court in W.P. No. 14918 of 2006
and batch and hence liable to be set aside. Therefore, the
petitioner approached the Court by filing the present writ
petition.
4. The learned Senior Designated Counsel appearing on
behalf of the petitioner submits that the impugned demand
notice vide Lr.No. SE/OP/SPRT/SAO/JAO/HT/D.No. 241/2024,
dated 06.02.2025 issued by the 2nd respondent is contrary to
the order of Division Bench of this Court dated 19.12.2023
passed in W.P. No. 14918 of 2006 and batch and W.P. No.
8252 of 2008 and also the order of the Apex Court dated
10.09.2024 passed in Central Power Distribution Co. of
A.P. Ltd., (Now Southern Power Distribution Company
SN, J
4 WP_5098_2025
Limited of Telangana) and Another Versus Union of
India & Others in Special Leave Petition (Civil) Diary No.
25649/2024 and therefore the petitioner herein is entitled for
the relief as prayed for in the present writ petition.
5. Learned Standing Counsel for TGSPDCL appearing on
behalf of respondent Nos.1 and 2 submits that as borne on
record, the petitioner in pursuance to the impugned demand
notice dated 06.02.2025 had made a detailed representation
dated 12.02.2025 addressed to the Superintending Engineer,
Operation Circle, TGSPDCL, Suryapet, Telangana i.e. 2nd
respondent herein requesting the 2nd respondent to withdraw
the impugned demand notice dated 06.02.2025 and to drop
further action arising out of the said notice, explaining that
the same is contrary to the orders of Division Bench of this
Court passed in W.P. No. 14918 of 2006 and batch and also
the order of the Apex Court dated 10.09.2024 passed in
Central Power Distribution Co. of A.P. Ltd., (Now
Southern Power Distribution Company Limited of
Telangana) and Another Versus Union of India &
Others in Special Leave Petition (Civil) Diary No.
25649/2024 and therefore the 2nd respondent may be
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5 WP_5098_2025
directed to consider the said reply/representation dated
12.02.2025 made by the petitioner in pursuance to the
demand notice issued to the petitioner for payment of Cross
subsidy Surcharge for the Financial Year 2005-06 to 2014-15,
within a reasonable period in accordance to law.
6. Taking into consideration :
(a) The facts and circumstances of the case,
(b) The submissions made by the learned Senior
Designated Counsel appearing on behalf of the
petitioner and the learned Standing Counsel appearing
on behalf of respondents,
(c) The impugned demand notice dated
06.02.2025,
(d) The orders of the Division Bench of this
Court dated 19.12.2023 passed in W.P. No.
14918/2006 and batch and also the order of the Apex
Court dated 10.09.2024 passed in SLP No.25649 of
2024 of the second respondent herein,
(e) The contents of the petitioner's
representation dated 12.02.2025 made in pursuance to
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6 WP_5098_2025
the impugned demand notice dated 06.02.2025
issued to the petitioner by the 2nd respondent herein,
The writ petition is disposed of directing the 2nd
respondent to consider the representation dated
12.02.2025 made by the petitioner in pursuance to the
impugned demand notice dated 06.02.2025 issued to
the petitioner by the second respondent in accordance
to law, in conformity with principles of natural justice
by providing an opportunity of personal hearing to the
petitioner and pass appropriate orders, within a period
of two (2) weeks from the date of receipt of the order.
Till the above exercise is initiated and concluded
by passing of appropriate orders by the 2nd respondent
duly considering the detailed representation dated
12.02.2025 filed by the petitioner before the 2nd
respondent against the impugned demand notice dated
06.02.2025 issued to the petitioner by the second
respondent within the stipulated time period as
indicated as above, as per the specific directions as
indicated as above, the respondents are directed not
to take any coercive steps including that of
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7 WP_5098_2025
disconnection of power supply pertaining to the
impugned demand notice vide Lr.No.
SE/OP/SPRT/SAO/JAO/HT/D.No. 241/2024, dated
06.02.2025 issued to the petitioner by the 2nd
respondent herein. There shall be no order as to costs.
As a sequel, the miscellaneous petitions, if
any pending, in the Writ Petition shall also stand closed.
___________________________
MRS. JUSTICE SUREPALLI NANDA
Date: 20.02.2025
Note
Issue C.C today
(B/o)
Skj
