IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated 24.2.2011 CORAM THE HONOURABLE MR.JUSTICE R.SUDHAKAR Writ Petition Nos.27499 and 27500 of 2010 and M.P.Nos.2 and 3 of 2010, W.P.No.27682 of 2010 and M.P.Nos.2 and 3 of 2010, W.P.No.27879 of 2010 and M.P.Nos.2 and 3 of 2010, W.P.No.30082 of 2010 and M.P.Nos.2 and 3 of 2010, W.P.No.30083 of 2010 and M.P.Nos.2 and 3 of 2010, W.P.No.1211 of 2011 and M.P.No.3 of 2011, W.P.No.1783 of 2011 and M.P.No.3 of 2010 W.P.No.27499 of 2010:- M/S.GTN ENTERPRISES LIMITED REP BY ITS AUTHORIZED SIGNATORY NOS. 8 9 10 INDIRA NAGAR THUNGAVI PO. UDUMALPET 642 203 TIRUPUR DISTRICT .. PETITIONER in WP.27499/10 M/S.PATSPIN INDIA LIMITED REP BY ITS ASSISTANT GENERAL MANAGER ENGINEERING) 2/85B TIRUPUR ROAD KOTTAMANGALAM POST PONNERI UDUMALPET 642 201 TIRUPUR DISTRICT .. PETITIONER in WP.27500/10 SRF LTD, H.T. A/C. NO.1666, PLOT K1, SIPCOT INDUSTRIAL COMPLEX, CUMMIDIPOONDI 601 201, REP, BY ITS ASSOCIATE VICE PRESIDENT (CORPORATION) .. PETITIONER IN WP.27682/10 M/S.BALU SPINNING MILLS PVT., LTD., C.AMMAPATTI .. PETITIONER IN WP.27879/10 M/S.MADURA GOATS PVT. LTD., REP. BY ITS MANAGER, EXCISE AND LEGAL, 144, M.G.ROAD, BANGALORE 560 001. .. PETITIONER IN WP.30082/10 & 30082 https://hcservices.ecourts.gov.in/hcservices/ 1. M/S.COMBODIA MILLS (NTC) HTSC.NO.III P.B. NO.3504, TRICHY ROAD, ONDIPUDUR, COIMBATORE 641 016 2. M/S.PANKAJA MILLS (UNIT OF NTC) LTD., HTSE.NO.48, 5/B1, PANKAJA MILLS ROAD, PULIAKULAM, COIMBATORE 641 045. 3. M/S.NATIONAL TEXTILE CORPORATION LTD., PIONEER SPEINNERS, HTSE.NO.5, KAMUDHAKUDI, RAMNAD 623 719. 4. M/S. KALLEESWARA MILLS, 'B' UNIT, HTSC.NO.15, KALAYARKOIL 630 551. 5. M/S. COIMBATORE MURUGAN MILLS (UNIT OF NTC) HTSC.NO.79, METTUPALAYAM ROAD, COIMBATORE 641 045 6. M/S.SRI RANGAVILAS GS&W MILLS, HTSC.NO.51, AVANASHI ROAD, PEELAMEDU, COIMBATORE 641 043 PETITIONERS ARE REP, THROUGH ITS SENIOR MANAGER (HR) DR.K.DURAIRAJ, NATIONAL TEXTILE CORPORATION, LTD., SOUTHERN REGIONAL OFFICER, 35B, SOMASUNDARAM MILLS ROAD, COIMBATORE, 641 009 .. PETITIONER IN WP.1211/11 M/S.OPG POWER GENERATION PVT. LTD., 117, P.S.SIVASAMY SALAI, MYLAPORE, CHENNAI 4. .. PETITIONER IN WP.1783/11 Vs 1 TAMILNADU GENERATION AND DISTRIBUTION CORPN. LTD (TANGEDCO) REP BY ITS CHAIRMAN 144 ANNA SALAI CHENNAI 2 ..Respondent-1 in WP.30082,30083, 27499, 27500/10, 1211/11 https://hcservices.ecourts.gov.in/hcservices/ 2 TAMILNADU ELECTRICITY REGULATORY COMMISSION (TNERC) REP BY ITS SECRETARY 19-A RUKMINI LAKSHMIPATHY SALAI MARSHALLS ROAD EGMORE CHENNAI 8 ..2nd Respondent in WP.30082,30083/10, 211/11 27499, 27500/10 3 THE SUPERINTENDING ENGINEER UDUMALPET ELECTRICITY DISTRIBUTION CIRCLE TIRUPUR ROAD UDUMALPET ..3rd Respondent in WP.27499, 27500, 27879/10 4. THE TAMIL NADU ELECTRICITY BOARD, REP. BY ITS CHAIRMAN, 800 ANNA SALAI, CHENNAI- 2. 5. TANGEDCO, REP, BY ITS DIRECTOR/FINANCE, 144, ANNA SALAI, CHENNAI-6. ..Respondents 1 &2 in WP.27682, 27879, Respondent 2& 3 in WP.1783/11 6. THE SUPERINTENDING ENGINEER, CHENNAI EDC/NORTH, CHENNAI-2, ..3rd Respondent n W.P.27682/10 7. THE SUPERINTENDING ENGINEER, TIRUNELVELI CIRCLE, T.N.GENERATION AND DISTRIBUTION CORPORATION LTD, (TANGEDCO) TIRUNELVELI 627 011 ..3rd Respondent in WP.30082/10 8. THE SUPERINTENDING ENGINEER, TUTICORIN ELECTRICITY DISTRIBUTION CIRCLE, T.N.GENERATION AND DISTRIBUTION CORPORATION LTD, (TANGEDCO) TUTICORIN 628 001. ..3rd Respondent in WP.30083/10 9. THE CHEIF FINANCIAL CONTROLLA/REVENUE, TNEB, 144, ANNA SALAI, CHENNAI - 2 10. THE SUPERINTENDING ENGINEER, COIMBATORE METRO CIRCLE T.N.GENERATION AND DISTRIBUTION CORPORATION LTD, COIMBATORE. https://hcservices.ecourts.gov.in/hcservices/ 11. THE SUPERINTENDING ENGINEERS, SIVAGANGAI CIRCLE, T.N.GENERATION AND DISTRIBUTION CORPORATION LTD, SIVAGANGAI 12. THE SUPERINTENDING ENGINEER, RAMNAD CIRCLE, T.N.GENERATION AND DISTRIBUTION CORPORATION LTD, RAMANATHAPURAM. ..Respondent 3 to 6 in WP.1211/11 13. THE STATE OF TAMIL NADU ENERGY DEPARTMENT, SECRETARIAT, CHENNAI ..1ST Respondent in W.P.1783/119 W.Ps.Nos.27499, 27500/10, 30082, 30083/10 Writs of certiorarified Mandamus, calling for the records of the 1st respondent culminating in his impugned communication bearing Lr. No. Dir/F/FC/R/D. No./10/ dt 26.11.10 quash the same and forbear the 1st and 3rd respondents from levying demanding and/or collecting the Cross Subsidy Surcharges from the petitioner for their H.T.S.C. No.134 in (WP.27499/10), 306 (in W.P.30083/10) respectively for purchase of energy from power exchanges and/or third party sources without obtaining the sanction of the 2nd respondent. W.Ps.No.27682, 27879/10 Writs of Writs of certiorarified Mandamus, calling for the records of the second respondent proposed in its impugned circular his Lr.NO.Dir/F/FC/R/D.No/10 dated 26.11.2010 and quash the same as being arbitrary and illegal and consequently direct the respondents to continue to permit the petitioner to avail supply of power from third party sources as also from its own sources without levying cross subsidy surcharge till such time Restriction and control measures are withdrawn W.P.1211/11 Writ of certiorarified Mandamus, calling for the records relating to the impugned circular/memo in Lr.No.Dir/F/FC/R/D/No/10, dt.26.11.2010 issued by the 3rd respondent and quash the same as illegal and arbitrary and consequently for bear the 1st, 3rd, and 4the respondents from levying, demanding and/or collecting cross subsidy surcharge from the petitioner for purchase of energy from power exchanges and/or third party sources as also from its own https://hcservices.ecourts.gov.in/hcservices/ sources W.P.1783/11 Writs of certiorarified Mandamus, calling for the records of the third respondent proposed in its impugned communication in Lr.No.Dir/F/FC/R/D.NO/10, dt.26.11.2010 and the clarification in Lr.No.Dir/F/FC/R/D.No./10, dt.21.12.2010 and quash the same as being arbitrary and illegal and consequently direct the respondent to continue to permit the petitioner to continue to sell power as a generator to its consumers without its consumers in choring any liability towards cross subsidy surcharge till such time as Restriction and Control measures are withdrawn W.P.27499/10 & 27500/10 For Petitioner : Mr.N.L.Rajah For Respondent : Mr.J.Ravindran (E.B) W.P.27682/10 For Petitioner : M/s.Sathish Parasaran For Respondent : Mr.A.Selvendran (E.B) W.P.27879/10 For Petitioner : M/s.Sathish Parasaran For Respondent : Mr.J.Ravindran (E.B) W.P.30082/10 & 1783/11 For Petitioner : M/s.Sathish Parasaran For Respondent : Mr.A.Selvendran (E.B) W.P.30083/10 For Petitioner : Mr.N.L.Rajah For Respondent : Mr.A.Selvendran (E.B) https://hcservices.ecourts.gov.in/hcservices/ W.P.1211/11 For Petitioner : Mr.S.Karunakar For Respondent : Mr.J.Ravindran (E.B) COMMON ORDER Writ Petition No.27499 of 2010 is filed praying to issue a Writ of Certiorarified Mandamus, calling for the records of the first respondent culminating in his impugned communication bearing Lr.No.Dir/F/FC/R/D.No. /10 dated 26.11.2010, quash the same and forbear the respondents 1 and 3 from levying, demanding and/or collecting Cross Subsidy Surcharges from the petitioner for their H.T.S.C.No.134 for purchase of energy from power exchanges and/or third party sources without obtaining the sanction of the second respondent. 2. Sri N.L.Rajah, Sri Rahul Balaji and Sri.S.Karunakar learned counsel appear for the petitioners. Sri A.Selvendran and Sri J.Ravindran, learned counsel appear for the respondents electricity board. 3. The relief sought for in all the 8 Writ Petitions are one and the same. Hence, by consent of all parties, all the writ petitions are taken up together for final disposal. 4. All these writ petitions have been filed challenging the imposition of Cross Subsidy Surcharge, inter alia contending that the levy is arbitrary, unreasonable and has no basis. Petitioners have in the meanwhile submitted a memorandum/representation to the Government pending the writ petitions requesting the Government to withdraw the levy of Cross Subsidy Surcharge. 5. Learned counsel appearing for the respondents electricity board, produced a copy of the Amended Circular issued in Circular Memo No.Dir/O/SE/LD&GO/E1/ABT/F interstate/D 3144/11 dated 8.2.2011 by the Tamilnadu Transmission Corporation Limited which reads as follows:- "In continuation of the already issued circular memo vide reference (1) and (2) cited above it is stated that For the HT consumers who purchase power upto https://hcservices.ecourts.gov.in/hcservices/ their sanctioned demand from power exchanges, traders and generators, the relevant cross subsidy surcharge as per clause 6.5 of TNERC order No.2 dt.15.05.2006 are temporarily waived until Restriction & Control measures are lifted. All S.Es./EDC are requested to adhere the above instructions strictly with immediate effect." 6. In view of the above Amended Circular dated 8.2.2011 issued by the Tamilnadu Transmission Corporation Limited, the demand of Cross Subsidy Surcharge in respect of each one of the HT Consumer is set aside. The respondents authorities are directed to adjust the amount, if any, paid by the HT Consumers/writ petitioners towards Cross Subsidy Surcharge, in the future current consumption bills. 7. All the 8 writ petitions stands ordered as above. No costs. Consequently, connected miscellaneous petitions are closed. ts Sd/- Asst.Registrar /True copy/ Sub.Asst.Registrar To 1. THE CHAIRMAN, TAMIL NADU GENERATION AND DISTRIBUTION CORPORATION LIMITED (TANGEDCO), 144, ANNA SALAI, CHENNAI-600 002. 2. THE SECRETARY, TAMIL NADU ELECTRICITY REGULATORY COMMISSION (TNERC), 19-A, RUKMANI LAKSHMIPATHY SALAI, MARSHALLS ROAD, EGMORE, https://hcservices.ecourts.gov.in/hcservices/ 3. THE SUPERINTENDING ENGINEER, UDUMALPET ELECTRICITY DISTRIBUTION CIRCLE, TIRUPUR ROAD, UDUMALPET. 4. THE CHAIRMAN, T.N.E.B. 800, ANNA SALAI, CHENNAI-2. 5. THE DIRECTOR/FINANCE, TANGEDCO, 144, ANNA SALAI, CHENNAI-6 6. THE SUPERINTENDING ENGINEER, CHENNAI EDC/NORTH, CHENNAI-2. 7. THE SUPERINTENDING ENGINEER, TIRUNELVELI CIRCLE, T.N.GENERATION AND DISTRIBUTION CORPR. LTD, (TANGEDCO) TIRUNELVELI 627 011 8. THE SUPERINTENDING ENGINEER, TUTICORIN ELECTRICITY DISTRIBUTION CIRCLE, T.N.GENERATION AND DISTRIBUTION CORPORATION LTD, (TANGEDCO) TUTICORIN 628 001. 9. THE CHEIF FINANCIAL CONTROLLA/REVENUE, TNEB, 144, ANNA SALAI, CHENNAI - 2 10. THE SUPERINTENDING ENGINEER, COIMBATORE METRO CIRCLE T.N.GENERATION AND DISTRIBUTION CORPORATION LTD, COIMBATORE. 11. THE SUPERINTENDING ENGINEERS, SIVAGANGAI CIRCLE, T.N.GENERATION AND DISTRIBUTION CORPORATION LTD, SIVAGANGAI 12. THE SUPERINTENDING ENGINEER, RAMNAD CIRCLE, T.N.GENERATION AND DISTRIBUTION CORPORATION LTD, RAMANATHAPURAM. https://hcservices.ecourts.gov.in/hcservices/ 13. THE STATE OF TAMIL NADU ENERGY DEPARTMENT, SECRETARIAT, CHENNAI + 4 cc to Mr.N.C.Rajah, Advocate, Sr.14119, 14117, 14118, 14116 + 6 cc to Mr.S.Ramesh Kumar, Advocate Sr.13279 + 3 cc to Mr. Satish Parasaran, Advocate Sr.13286. 13287. 13285. VSV(CO) RRI/10.3.2011 W.P.Nos.27499 of 2010 etc. batch https://hcservices.ecourts.gov.in/hcservices/