Telangana High Court

M/S. Kala Jyothi Process Pvt. Ltd., vs Southern Power Distribution Company Of ... on 20 February, 2025

Author: Surepalli Nanda

Bench: Surepalli Nanda

          HON'BLE MRS JUSTICE SUREPALLI NANDA

                  WRIT PETITION No.5115 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/CBC/SAO/JAO/HT-I/D.No.620, dated 29/01/2025 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 of this SN, J 2 WP_5115_2025

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 500 KVA with

HT Service Connection No.CBC-704 for an uninterrupted

power supply, the petitioner company was purchasing power

from the generator M/s.Tirumala Cotton & Agro Products Pvt.

Limited. However, the petitioner's generator was granted

permission by State Government of Andhra Pradesh under

Section 43 (1) of the Electricity Supply Act, 1948 and is

squarely covered under the Electricity (Removal of Difficulties)

Second Order, 2005. Therefore, the petitioner is entitled to

exemption from the payment of Cross Subsidy Surcharge

(CSS). Following the issuance of the Common Order by the

learned TGERC, the 2nd respondent issued a demand notice SN, J 3 WP_5115_2025

vide Lr.No. SE/OP/CBC/SAO/JAO/HT-I/D.No.620, dated

29.01.2025. The demand notice sought payment of

Rs.54,46,797.00 (Rupees Fifty Four Lakhs Forty Six

Thousand Seven Hundred Ninety Seven 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 dated

19.12.2023. Aggrieved by the said demand notice dated

29.01.2025, the petitioner made a representation dated

07.02.2025 to the 2nd respondent, requesting the respondent

to withdraw the said impugned notice. However, the same

was not considered. Aggrieved by the said inaction of the

respondents, the present writ petition is filed.

4. The learned Senior Designated Counsel appearing on

behalf of the petitioner submits that the impugned demand SN, J 4 WP_5115_2025

notice vide Lr.No. SE/OP/CBC/SAO/JAO/HT-

I/D.No.620, dated 29.01.2025 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 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 29.01.2025 had made a detailed representation

dated 07.02.2025 addressed to the Superintending Engineer,

Operation Circle, Cybercity, TGSPDCL, Nanalnagar "X" Roads,

Rethibowli, Telangana, i.e. 2nd respondent herein requesting

the 2nd respondent to withdraw the impugned demand notice

dated 29.01.2025 and to drop further action arising out of SN, J 5 WP_5115_2025

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 directed to consider the

said reply/representation dated 07.02.2025 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, SN, J 6 WP_5115_2025

(c) The impugned demand notice dated

29.01.2025,

(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 respondent No.2 herein,

(e) The contents of the petitioner's

representation dated 07.02.2025 made in pursuance to

the impugned demand notice dated 29.01.2025 issued

to the petitioner by the 2nd respondent herein,

The writ petition is disposed of directing the 2nd

respondent to consider the representation dated

07.02.2025 made by the petitioner in pursuance to the

impugned demand notice dated 29.01.2025 issued to

the petitioner by the respondent No.2 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.

SN, J 7 WP_5115_2025

Till the above exercise is initiated and

concluded by passing of appropriate orders by the 2nd

respondent duly considering the detailed

representation dated 07.02.2025 filed by the petitioner