IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated 25.2.2011 CORAM THE HONOURABLE MR.JUSTICE R.SUDHAKAR Writ Petition No.23651 of 2010 and M.P.Nos.1 to 5 of 2010 Tamilnadu Petroproducts Limited, Manali Express Highway, Manali, Chennai-600068. ... Petitioner -Vs.- 1.Tamil Nadu Electricity Regulatory Commission, represented by its Secretary, 19-A, Rukmini Lakshmipathy Salai, (Marshall's Road), Egmore, Chennai-600 008. 2.The Tamil Nadu Electricity Board, represented by its Chairman, 800, Anna Salai, Chennai-600 002. 3.The Superintending Engineer, Tamil Nadu Electricity Board, (CEDC/North), 141, Anna Salai, Chennai-600 002. 4.The Accounts Officer/Revenue, Tamil Nadu Electricity Board, Chennai (North) Circle, 141, Anna Salai, Chennai-600 002. ... Respondents Writ Petition is filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorarified Mandamus, calling for records of the third respondent in its communication in https://hcservices.ecourts.gov.in/hcservices/ Lr.No.SE/CEDC/N/DFC/N/AS/F/1395/HT/F.Quota/D.No./10 dated Nil.10.2010 and signed on 18.10.2010 but effective from 17.8.2010 and the consequential demand for extra levy in respect of Quota Consumption Units and Quota Demand of Rs.1,17,01,968/- and Rs.20,08,968/- respectively in CC Bill bearing No.HT A/c.1395 dated 30.9.2010 and quash the same as arbitrary, illegal and without authority of law, and consequently issue a direction to the respondents 3 and 4 the respondent to permit the petitioner to continue to run its industry with 80% of its base demand which in terms of the third respondent's fixation dated 16.9.2010 in Lr.No.SE/CEDC/North/AEE/GL/F.Power cut/D1251/10 is a demand quota of 16,300 KVA and energy quota of 93,81,947 units. For petitioner : Mr.Rahul Balaji For respondents : Mr.A.Selvendran O R D E R Writ Petition is filed praying to issue a Writ of Certiorarified Mandamus, calling for records of the third respondent in its communication in Lr.No.SE/CEDC/N/DFC/N/AS/F/1395/HT/F.Quota/ D.No./10 dated Nil.10.2010 and signed on 18.10.2010 but effective from 17.8.2010 and the consequential demand for extra levy in respect of Quota Consumption Units and Quota Demand of Rs.1,17,01,968/- and Rs.20,08,968/- respectively in CC Bill bearing No.HT Account No.1395 dated 30.9.2010 and quash the same as arbitrary, illegal and without authority of law, and consequently issue a direction to the respondents 3 and 4 to permit the petitioner to continue to run its industry with 80% of its base demand which in terms of the third respondent's fixation dated 16.9.2010 in Lr.No.SE/CEDC/North/AEE/ GL/F.Power cut/D1251/10 is a demand quota of 16,300 KVA and energy quota of 93,81,947 units. 2. Mr.A.Selvendran, learned counsel appears for the respondents electricity board. 3. Petitioner is the joint venture company promoted by the Tamil Nadu Industrial Development Corporation Limited and is engaged in manufacture and sale of Linear Alkyl Benzene, and other chemical products at Manali. Petitioner is provided with electricity service connection bearing H.T.Sc.No.1395. Petitioner had also a windfarm HT service connection Nos.32 and 75 commissioned in the year 1995-96 and those wind mills were sold in the year 2008 in favour of M/s.Dynamatic Technologies Limited, Bangalore. The intimation of the sale was given to the respondent electricity board and by proceedings dated 24.2.2009, the Chief Engineer, Tamil Nadu Electricity Board has accorded approval for the name transfer in https://hcservices.ecourts.gov.in/hcservices/ favour of M/s.Dynamatic Technologies Limited. In effect, the petitioner does not have a wind energy service connection and is a regular consumer to the respondent's electricity board. 4. It is also the case of the petitioner that the Tamil Nadu Electricity Board has revised the demand quota for the HT Account No.1395 as 16300 KVA as against 12800 KVA in proceedings Lr.No.SE/CEDC/North/AEE/GL/F.Power cut/D1251/10 dated 16.9.2010. In spite of accepting the fact that the windfarm service supply has already been transferred in favour of the third party, the respondent electricity board in their bill for 30th September, 2010 has shown the demand quota as if the petitioner is utilising the wind energy service connection. 5. According to the petitioner, penalty amount has been paid partially based on the Court's order and some more amount is yet to be paid. According to the petitioner, he is entitled to the revised demand quota for HT Account No.1395 at 16900 KVA and not 12800 KVA. Consequently, petitioner is not liable to pay penalty as imposed as if the petitioner is a consumer of wind energy power. 6. Thiru A.Selvendran, learned counsel appearing for the respondents, on the basis of records, viz., proceedings dated 24.2.2009 which is the approval accorded by the respondent's board for transfer of the wind energy power service connection in favour of Dyanamatic Technologies Ltd., Bangalore and also revised demand quota in proceedings dated 16.9.2010, states that the authorities might have overlooked the facts and would have restricted the demand quota and imposed penalty not realising the above factors. On instruction learned counsel appearing for the respondents states that the Court may take into consideration the above documents for appropriate relief. He further states that based on these documents the authorities may be asked to rework the bills showing the demand quota as per the proceedings dated 16.9.2010 and consequently adjust the penalty amount paid in the future bills. 7. The Tamil Nadu Electricity Regulatory Commission in its Suo- motu Proceedings No.1 of 2009 by order dated 28.10.2009 in para 16 (16) has ordered as follows:- "16. After taking into account the submissions made by both the parties, the Commission directs as follows:- (1) to (15) xxxx (16) If a consumer opts out of wheeling agreement and becomes an ordinary consumer, A and E referred in the memo dated 17-11-2008 shall be deemed to be the base energy and base demand." https://hcservices.ecourts.gov.in/hcservices/ 8. Based on the order of the Tamil Nadu Electricity Regulatory Commission, the proceedings of the Tamil Nadu Electricity Board dated 16.9.2010 has been passed fixing the revised demand quota for HT Account No.1395 as 16300 KVA. Therefore, the respondents are not justified in modifying the demand quota in the bill for 30th September, 2010 at 12800 KVA. This will be contrary to the order of the Superintending Engineer dated 16.9.2010 referred to above following the Tamil Nadu Electricity Regulatory Commission's Suo- motu Proceedings No.1 of 2009. 9. In any event, the respondent department ought not to have reduced the demand quota on the assumption that the third party power purchase has been effected by the petitioner. Admittedly the respondents department has granted approval on 24.2.2009 for transfer of wind energy to M/s. Dyanamatic Technologies Limited, Bangalore and therefore, this stand and consequent calculation is erroneous. 10. As a result, the action of the respondent department reducing the demand quota and consequently imposing penalty is contrary to the above referred proceedings and not justified. The impugned proceedings are accordingly set aside. 11. Respondents are directed to rework the bill for September, 2010 onwards showing the revised demand quota in terms of the proceedings of the Superintending Engineer in his letter dated 16.9.2010. Consequently, the penalty amount levied in respect of the bills for 30th September, 2010 is set aside. The amount so collected from petitioners shall be adjusted in three equal instalments, namely, March, April and May, 2011 towards the current consumption bill. 12. The Writ Petition is ordered as above. No costs. Consequently, connected miscellaneous petitions are closed. Sd/ Asst.Registrar /true copy/ Sub Asst.Registrar ts https://hcservices.ecourts.gov.in/hcservices/ To 1.The Secretary, Tamil Nadu Electricity Regulatory Commission, 19-A, Rukmini Lakshmipathy Salai, (Marshall's Road), Egmore, Chennai-600 008. 2.The Chairman, Tamil Nadu Electricity Board, 800, Anna Salai, Chennai-600 002. 3.The Superintending Engineer, Tamil Nadu Electricity Board, (CEDC/North), 141, Anna Salai, Chennai-600 002. 4.The Accounts Officer/Revenue, Tamil Nadu Electricity Board, Chennai (North) Circle, 141, Anna Salai, Chennai-600 002. + 1 cc to Mr.Satish parasaran, Advocate SR.13554 W.P.No.23651 of 2010 MRD(CO) Eu 11.3.11 https://hcservices.ecourts.gov.in/hcservices/