Telangana High Court

M/S. Hotel Kamal P Ltd., vs Southern Power Distribution on 20 February, 2025

Author: Surepalli Nanda

Bench: Surepalli Nanda

          HON'BLE MRS JUSTICE SUREPALLI NANDA

                WRIT PETITION No.5120 OF 2025

ORDER:

Heard Sri Adinarayana, learned Senior Designated

Counsel representing Sri Deepak Chowdary, 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/Secbad/SAO/JAO(HT)/D.No.541, dated 03/02/2025 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 of this SN, J 2 WP_5120_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 400 KVA with

HT Service Connection No.SEC-510. The petitioner company

was purchasing power from the generator M/s. NATL Power

Limited for an uninterrupted power supply. 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 vide Lr.No. SN, J 3 WP_5120_2025

SE/OP/Secbad/SAO/JAO(HT)/D.No.54/ 2025, dated

03.02.2025. The demand notice sought payment of

Rs.1,73,46,422/- (Rupees One Crore Seventy Three Lakhs

Forty Six Thousand Four Hundred and Twenty Two 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, after representing to the 2nd respondent on

10.02.2025.

4. The learned Senior Designated Counsel appearing on

behalf of the petitioner submits that the impugned demand

notice vide Lr.No. SE/OP/Secbad/SAO/JAO(HT)/D.No.541/

2025, dated 03.02.2025 issued by the 2nd respondent is SN, J 4 WP_5120_2025

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 03.02.2025 had made a detailed representation

dated 10.02.2025 addressed to the Superintending Engineer,

Operation Circle Secunderabad, TGSPDCL, Gun Rock

Tirumalgiri, Secunderabad, Telangana, i.e. 2nd respondent

herein requesting the 2nd respondent to withdraw the

impugned demand notice dated 03.02.2025 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 SN, J 5 WP_5120_2025

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

10.02.2025 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

03.02.2025, SN, J 6 WP_5120_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 10.02.2025 made in pursuance to

the impugned demand notice dated 03.02.2025 issued

to the petitioner by the 2nd respondent herein,

The writ petition is disposed of directing the 2nd

respondent to consider the representation dated

10.02.2025 made by the petitioner in pursuance to the

impugned demand notice dated 03.02.2025 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.