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Sri Nachammal Cotton Mills Ltd., represented by is Manager, K. Muthukrishnan v/s Tamil Nadu Electricity Board, represented by its Chairman, Chennai & Others

    Writ Petition Nos.5977 of 2011 & M.P.Nos.1 & 2 of 2011

    Decided On, 09 March 2011

    At, High Court of Judicature at Madras

    By, THE HONOURABLE MR. JUSTICE R. SUDHAKAR

    For the Petitioner: R.S. Pandiyaraj, Advocate. For the Respondents: A. Selvendran, Advocate.



Judgment Text

(Prayer: Writ Petition is filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorarified Mandamus, calling for the records of the second respondent proposed in its impugned communication in Lr.No.Dir/F/FC/R/D.No.10 dated 26.11.2010 and the clarification in Lr.No.Dir/F/FC/R/D.No.10 dated 21.12.2010 as also the consequent CC bills dated 1.12.2010, 31.12.2010 issued by the third respondent insofar as it relates to levy of cross subsidy surcharge, quash the same as being arbitrary and illegal and consequently direct the respondents to refund/give adjustment of the amount already collected Rs.2,22,569/- and 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also from its own sources without levying cross subsidy surcharge till such time Restriction and Control measures are withdrawn.)

1. Writ Petition is filed praying to issue a Writ of Certiorarified Mandamus, calling for the records of the second respondent proposed in its impugned communication in Lr.No.Dir/F/FC/R/D.No.10 dated 26.11.2010 and the clarification in Lr.No.Dir/F/FC/R/D.No.10 dated 21.12.2010 as also the consequent CC bills dated 1.12.2010, 31.12.2010 issued by the third respondent insofar as it relates to levy of cross subsidy surcharge, quash the same as being arbitrary and illegal and consequently direct the respondents to refund/give adjustment of the amount already collected Rs.2,22,569/- and 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also from its own sources without levying cross subsidy surcharge till such time Restriction and Control measures are withdrawn.

2. Sri R.S.Pandiyaraj, learned counsel appears for the petitioner. Sri A.Selvendran, learned counsel appears for the respondents electricity board. By consent of both parties, the writ petition is taken up for final disposal.

3. The writ petition has been filed challenging the imposition of Cross Subsidy Surcharge, inter alia contending that the levy is arbitrary, unreasonable and has no basis. HT Consumers have in the meanwhile submitted a memorandum/representation to the Government pending batch of writ petitions requesting the Government to withdraw the levy of Cross Subsidy Surcharge.

4. 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 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."

5. In view of the above Amended Circular dated 8.2.2011 issued by the Tamilnadu Transmission Corporation Limited, the demand of Cross Subsidy Surcharg

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e of the petitioner/HT Consumer is set aside. The respondents authorities are directed to adjust the amount, if any, paid by the HT Consumer/writ petitioner towards Cross Subsidy Surcharge, in the future current consumption bills. 6. The writ petition stands ordered as above. No costs. Consequently, connected miscellaneous petitions are closed.
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