A writ petition challenging the 18% per annum interest levy on belated surcharge payments under TNEB terms. The court reduced the interest rate to 1% per mensem (12% per annum) following a prior Division Bench decision.
Petitioners' direction to collect interest for belated payment of surcharge reduced to 12% per annum.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 24.03.2022
CORAM
THE HONOURABLE MR. JUSTICE M.GOVINDARAJ
W.P.No.36556 of 2007
M/s.Sri Krishna Smelters Ltd., Rep. by the Managing Director, S.F.No.110/1-E, Iveli Village, Akkama Post, Sankari - 637 301. Salem District. ... Petitioner Vs. 1. The Union of India, Rep. by the Secretary, Department of Energy, New Delhi.
PRAYER: The Writ Petition has been filed under Article 226 of the Constitution of India praying to issue a Writ of Declaration, to declare that Clauses 20.02 and 20.03 of the Terms and Conditions of supply of electricity of Tamil Nadu Electricity Board levying belated payment of surcharge 1.5 percent per month (18% per annum) are excessive, arbitrary, unreasonable, discriminatory violative of Article 14 and 19(1) (g) of Constitution of India for the account years 2001-02 to
2004-05 and consequently direct the respondents to refund the BPSC collected illegally with interest pursuant to demand by the fourth respondent in Lr.No.PR/A/ Cs.Br./AOR/HT/A2/BF.132/2003/dated 25.08.2003.
For Petitioner : M/s.S.Rajesh
for Mr.S.SIVANANDAM For Respondent : M/s.J.Madanagopal Rao No.1 Senior Panel Counsel
For Respondent : M/s.M.Rajendiran No.2 Additional Government Pleader
For Respondent : M/s.Abdul Kalam Nos.3 to 5 Standing Counsel
O R D E R
The petitioner challenges the imposition of interest levied at the rate of 18% per annum as excessive, arbitrary, unreasonable and discriminatory violative of Article 14 and 19 (1)(g) of Constitution of India.
With the above direction, the Writ Petition is disposed of. There shall be no order as to costs.
Sd/-
Assistant Registrar(CS VI)
//True Copy//
Sub Assistant Registrar
asi To
+1cc to Mr.S.SIVANANDAM, Advocate, S.R.No.20282 +1cc to the Government Pleader, S.R.No.20612
W.P.No.36556 of 2007
PL(CO) CT 06/04/2022
2 issues framed by the court
Whether the levy of surcharge interest at 18% per annum under TNEB terms and conditions is excessive, arbitrary, and violative of Article 14 and 19(1)(g).
Whether the interest rate for belated payment of surcharge should be reduced.
Colour shows how this judgement treated each authority
M/s. Sri Krishna Alloys Vs. Tamil Nadu Electricity Board, rep. by its Chairman & Others, dated 24.04.2008, (CDJ 2008 MHC 1972)Followed¶20
3 provisions across 2 enactments
M/s. Sri Krishna Smelters Ltd.
The Union of India
The State of Tamil Nadu
The Tamil Nadu Electricity Board
The Superintending Engineer, TNEB
The Tamil Nadu Electricity Regulatory Commission
M. Govindaraj
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
