Allowed

Nalco Metal Products Limited v. the Tamil Nadu Generation and Distribution

Madras HC15 Jul 2024WP/18805/2024

Case brief

AI extract

What is this about?

Wind energy generator sought mandamus restraining TANGEDCO from collecting consumption and demand charges until it paid interest on delayed power tariff payments for two financial years. Following Supreme Court precedent fixing 10% interest for delays beyond 60 days, the Court issued the mandamus as prayed.

What did the court decide?

Mandamus issued directing respondents not to collect current consumption charges, demand charges or arrears until payment/adjustment of Rs.3,02,975/- interest dues; no costs; connected miscellaneous p

Nalco Metal Products Limited Vs the Tamil Nadu… — Service and Employment | Madras HC (2024)

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2024:MHC:2681

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W.P.No.18805 of 2024

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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Dated: 15.07.2024

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CORAM

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THE HONOURABLE DR. JUSTICE ANITA SUMANTH

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W.P.No.18805 of 2024 & WMP.No.20633 of 2024

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Nalco Metal Products Limited represented by its Chief Executive Officer, Mr.Kasirajan.A No.89, Maravankulam, Thirumangalam 625 706 Madurai District, Tamil Nadu

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... Petitioner

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1 The Tamil Nadu Generation and Distribution Corporation Limited, (TANGEDCO) represented by its Chairman & Managing Director, 144, Anna Salai,

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Chennai – 600 002.

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2 Director – Finance, The Tamil Nadu Generation and Distribution Corporation Limited, 144, Anna Salai, Chennai – 600 002.

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3 The Chief Financial Controller, (Revenue) The Tamil Nadu Generation and Distribution Corporation Limited, 144, Anna Salai, Chennai – 600 002.

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4 The Superintending Engineer, (TANGEDCO), Kanyakumari Electricity Distribution Circle, Kanyakumari, Tamil Nadu.

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https://www.mhc.tn.gov.in/judis

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Pg.No.1/4

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W.P.No.18805 of 2024

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5 The Superintending Engineer, (TANGEDCO), Dindigul Electricity Distribution Circle, Dindigul, Tamil Nadu.

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6 The Tamil Nadu Electricity Regulatory Commission, SIPCOT Industrial Park, Guindy, Chennai.

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.... Respondents

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PRAYER: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Mandamus directing the respondents and their men, agents not to collect current consumption charges, demand charges and any arrears from the petitioner until the respondents make payment of the outstanding dues of Rs.3,02,975/- (Rupees Three Lakhs Two Thousand Nine Hundred and Seventy Five only), payable to the petitioner towards the interests on delayed payments for the power supplied thereon calculated at 1% per month payable from the time such sums fell due, thereby calculated at 12% for the delays caused for the financial year 2007-2008 and 2013-2014, along with interest dues thereon till the date of complete payment or adjustment in the current consumption charges payable by the petitioner at its WEG bearing HTSc.No.059094500028 in Dindigul EDC.

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For Petitioner : Mr.Rahul Balaji For Respondents : Mr.Madhusudanan Standing Counsel

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O R D E R

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Mr.Madhusudhanan, learned counsel, who accepts notice for the

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respondents/officials of Tangedco, would accede to the position that the prayer

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https://www.mhc.tn.gov.in/judis

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Pg.No.2/4

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W.P.No.18805 of 2024

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sought for by the petitioner, being a writ of Mandamus directing the respondents not to collect current consumption charges, demand charges and any arrears from the petitioner until the respondents make payment of the outstanding dues of Rs.3,02,975/- , payable to the petitioner towards the interests on delayed payments for the power supplied thereon for the financial year 2007-2008 and 2013-2014, is liable to be accepted.

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My attention is drawn by both learned counsel to orders of the Hon'ble Supreme Court in I.A.No.4 of 2016 in Civil Appeal No.2937 of 2014 dated 08.07.2016 [ Chairman, Tamil Nadu Electricity Board V. Indian Wind Power Association ], which has been followed subsequently by this Court in W.P.No.22406 of 2017 dated 08.12.2021 ( Indian Wind Power Association V.

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Tamil Nadu Generation and Distribution, Corporation Ltd.) , where under the respondents have been directed to pay interest at 10%, wherever there is a delay of more than 60 days in settling the dues to the petitioner. This Court also made it clear that if the petitioner makes any claim seeking interest more than 10%, the respondents are always at liberty to consider and decide the same in accordance with law.

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In light of the same, the prayer of the writ petitioner is liable to be acceded to and mandamus is issued as sought for.

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https://www.mhc.tn.gov.in/judis

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Pg.No.3/4

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W.P.No.18805 of 2024

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Dr.ANITA SUMANTH,J.

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Writ Petition stands allowed in terms of this order. No costs.

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Connected Miscellaneous Petitions is closed.

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15.07.2024 Index : Yes / No Speaking order (½) Neutral citations:Yes sl To

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1 The Tamil Nadu Generation and Distribution Corporation Limited, (TANGEDCO) represented by its Chairman & Managing Director, 144, Anna Salai, Chennai – 600 002.

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2 Director – Finance, The Tamil Nadu Generation and Distribution Corporation Limited, 144, Anna Salai, Chennai – 600 002.

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