M/s. Sai Prakash Sudarshanam Industries Pvt. Limited Vs Telangana State Southern Power Distribution Company Limited.

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132521

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IN THE HIGH^{COURT FOR THE STATEOF TELANGANA} AT HYDERABAD (SPecial Original^{Jurisdiction)}

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THURSDAY,^{THE TWENTIETH DAY OF FEBRUARY} TWO THOUSAND^{AND TWENTY FIVE}

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PRESENT

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THE HONOURABLE^{MRS JUSTICE SUREPALLI NANDA}

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WRIT PE TITION^{NO:5121 0F 2025}

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Between:

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M/s. Sai Prakash^{Sudarshanam lndustriesPvt.Limited,(Hotal SaiprSkash)} iiLiia:6tr.^{'i-iihr+{[,NirpJriv,Hvderahad'relangana- 500 073 Rep Fv} ilZ'"I#ii oi*;;;,'M-|..'b;;r";"^{srb iltJ t'l,iinariHr"service connection No'} HDC.44O

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...PFrlTloNER

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AND

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1 . Telanqana state^{Southern Power Distributioncompany.Limited.,6-1-150'} ' i/li;i'i#;*;ii, 5"ii6trii"t Road, Hvderabad, Rep' bv its chairman and Managing Director

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Superintendin gE noineer. Operation^{Central Circle, TGSPDCL, ChandraVihar} Complex,611 1F lo-or, MG Rbad,^{Hyderabad. Telangana}

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...RESPONDENTS

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PetitionunderArticle226oftheConstitutionoflndiaprayingthatinthe circumstancesstatedintheaffidavitfiledtherewith,theHighCourtmaybe to^pass an^{ora"t. of oro"rs or writ or direction more particularly one in the} ;i;; J"nrnOt natureofWritofManoamusdeclaringtheactionofRespondentsin.issuing^{for payment of Cross SubsidfSurcharge (CSS) for lle fY} -299!f.6 to ioJa-i s- uio"'^{t-i.No.seloplcc/HYD/SA9/AA6(HTyJAo(H'T)/D'No'7077 t2o25'} Oi afOf.)OZS,^{issueO Uy tne znO Respondent' purportedto be bas-ed on the} Tarifforderdt.3o.oB.2024issuedby.theTelanganaElectricity-Regu.latory Commission^{determiningGu CSS tor FY ZOOS-OGb2O14-15, as arbitrary'illegal,} zoz3 of this^{Honble Court in W'P'No' 14918 of} contrary to^theJudgme "t'il.fi.li 2006 and^{batch,provision.-oitt"ElectricityAct, 2003. besides beingviolative of} the^{petitioner's rignts guaranteeJunOet Article14' 1 9(1 Xg) of the Constitutionof} lndia and consequently^{set aside the same'}

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IA NO :1OF^2O25

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PetitionunderSection,l5lCPCprayingthatinthecircumstancesstatedin the affidavit^{filed in suppoi'oiirt"*tit fetiilori, the Hiqh Court may be pleasedto} direct the^{Respondentsnot to take any coercivi stepsiniluding that of}

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disconnection of power supply pursuant to the demanrj notice vide Lr.No.SE/OP/CC/H'/D/SAO/AAO(HT/JAO(H.T)/D.No.7077 t2\2s Dr 31 .O1 .2025 issued by the 2nd R.espondent.

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Counsel for the Petitioner: SRI ADINARYANA, SR. COUNSEL REp. SRI DEEPAK CHOWDARY

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counsel for the Respondents: sRr N. SREEDHAR REDDY, sc FoR TsspDcL

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The Court made the following: ORDER

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fl

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HON'BLE MRS JUSTICE SUREPALLI NANDA

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WRIT PETITION No.s L2t OF 2fJ25

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ORDER:

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. Heard Sri Adinarayana, learned Senior Designated Counsel representing Sri Deepak Chowdary, learned counse!, appearing for the^petitioner and Sri^N. Sreedhar Reddy, learned Standing Counsels^for TSSPDCL appearing on behalf of the respondent^Nos.1 and 2.

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The petitioner approached this Coutt with^the following prayer:

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..... to pass an order or orders or writ or direction more particularly one in the nature of Writ of Mandamus declaring the action of Respondentsⁱⁿ issuing demands for^payment of Cross^Subsidy Surcharge^(CSS) for the FY 2005-06^{to 2014-15} vide Lr.No.SE/OPlCClHYD/SAO/AAO(HT)/lAo (H.T)/D.No. 7077 /2025, dated 3tlOL/2025 issued by the 2nd Respondent^purported to be^{based on} the Tariff Order dated 3OlO8/2024^{issuedby the} Telangana Electricity Regulatory^Commission determirli.ng the CSS for^{FY 2005-06to 2014-15as} arbitrary, illegal, contrary^{to the Judgmentdated}

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2 \I'P 5l2l 2025

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L9/721t2023 of this Honourable Court in W.P. t,lo. 14918 of 2006 and batch, provisions of the Electricity Act, 2003, besides being violative of the petitioner's rights guaranteed under Articles 14, 19 (1) (S) of the Constitution of India and consequently set aside the same and pass...,,.

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The case of the petitioner, in brief, is that the petitioner company is engaged in the business of manufacture and sale of cement. The petitioner had entered into a High Tension (HT) Agreement with the 1't respondent for power sLipply with a contracted Maximum Demand (CMD) of 2BO KVA AT 11 KV vide HT Service Connection No.HCD_440. The petitioner ccrmpany was purchasing power from the generator M/s. Sudha Agro Oil and Chemical Industries Ltd., for an uninterrupted power supply. However, the petitioner,s generator was granted permission by State Government of Andhra Pradr:sh under Section 43 (1) of the Electricity Supply Act, 1948 and is squarely covered under the Electricity (Removal of Difficulties) Second Order, 2005. Therefore, the petitioner is r:ntitled to exemption from the payment of,Cross Subsidy Sur,:harge (CSS). Following the issuance of the Common Order by the learned TGERC, the 2nd respondent

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(

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5Nl J wP 5 r2l 2025

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issued a demand notice vide Lr.No. SE/OPICC/HYDI SAO/ AAO(HT)JAO(H.T)/D.No.7077/ 202s, dated 31.01.2025. The demand notice sought payment of Rs.63,55,472/- (Rupees Sixty Three Lakhs fifty Five Thousand Four Hundred and Seventy Two only) as CSS for the year FY 2005-06 to FY 2OL4-15 with a clear stipulation that failing to do so would result in the surcharges being raised as per existing rules without further notice and service would be disconnected. It is further the case of the petitioner that the impugrled demand raised by the respondents is a clear violation of Electricity (Removal of Difficulties) Second Order, 2005 and a direct contravention of the orders passed by this Court in W.P. No. 14918 of 2006 and batch and hence liable to be set aside. Therefore, the petitioner approached the Court by flling the present writ petition, after representing to the 2nd respondent on 13.02.2025.

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The learned Senior Designated Counsel appearing on behalf of the petitioner submits that the impugned demand notice vide Lr.No. SE/OP/CC/HYDISAO/AAO(HT)IAO (H.T)/D.No.7077/ 2025, dated 31.01.2025 issued by the 2nd respondent is contrary to the order of Division Bench of this

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4 .vp 5 r2l 2o):

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Court dated t9.12.2023 passed in W.p. No. 14918 of 2006 and batch and W.p. No. 8252 of 2008 and also the order oF the Apex Court dated 10.0g.2024 passed in Central Pow rD istri bu on o. of P.L N w ou ern P we Distrib utionCo MDanv Lim ited ofTela nqa na) and A oth rV r s to of n & others in Special Leave Petition (Civil) Diary No. 25649/2024 and therefore the petitioner herein is entifled for the relief as prayed for in the present writ petition.

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Learrred Standing Counsel for TGSpDC)L appe,3ring on behalf of rr:spondent Nos.1 and 2 submits that as borne on record, the petitioner in pursuance to the impugned demand notice daterl 3I.Ol.2O2S had made a detailed representation dated 13.0I1.2025 addressed to the Superintending Engineer, Operation Ctentral Circle, TGSpDCL, Chandra vihar Complex, 6th floor, MG Road, Hyderabad, Telangana, i,e. 2nd respondent herein requesting the 2nd respondent to withdraw the impugned demand notice dated 31.01.2025 and to drop further actic,n arising out of the said notice, explaining that the same rs contrary to the orders of Division Bench of this Court passe(i in W.p. No. 14918 of 2006 and batch and also

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I

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5 w'? 5t2l²⁰²⁵

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theorderoftheApexCourtdated10.0g'2024passedin w r P w r ra

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T lan ana)an^{dAn other} Versus Unionof India & Others P 25 649 t20^{4and therefore the 2nd respondent maybe} directedtoconsiderthesaidreply/representationdated L3.02.2025^{made by the petitioner in pursuance to the} demandnoticeissuedtothepetitionerforpaymentofCross subsidy Surcharge^{for the FinancialYear 2005-06 to 2014-15'} within a^{reasonable periodin accordance to law'}

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6 Takinoin^to nsideratiⁿ (a) The facts and^{circumstances of the case'}

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(b) The submissions^{made by the learned Senior}

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Designated^{Counselappealing on behalf ofthe} petitioner and^{the learned Standing Counsel appearing} on behalf^{of resPondents,}

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(c) The impugned^{demand notice dated} 31.oL.202s,

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(d) The orders^{of the Division Bench of this} Court dated^{1rg'1.2'2L23 passed in W'P'No'}

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wP_5121 2025

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l49lA/2006 and batch and also the order of the Apex court dated ro.og.2o.24 passed in slp No.25649 0f 2024 of the respondent No.2 herein,

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(e) The contents of the petitioner,s representation dated il3.O2.z(J[|made in pursuance to the impugned demand notice dated 31.O1.2O25 issued to the petitioner by the 2nd respondent herein, The writ petition is disposed of directing the 2nd respondent to consider the representation dated 13-02-2025 made by the petitioner in pursuance to the impugned demand notice dated 31.01.2O25 issued to the petitioner by the respondent No.2 in accordance to !aw, in conformity with principres of naturar justice by providing an opportunity of personal hearing to the petitioner and pass appropriate orders, within a period of two (2) weeks from the date of receipt of the order.

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Till the above exercise is initiated and concluded by passing of appropriate orders by the 2.d respondent duly considering the detailed representation dated L3.O2.2O25 fited by the petitioner before the Znd respondent against the impugned demand notice dated

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wP 5l2l 2025

the 31.01.2025^{issued to the petitioner by} respondent No.2^{within the stipulated time period as} indicated above,^{as per the specific directionsas} indicated above,^{the respondents are directed not to} take any coercive^{steps includingthat of disconnection} of power supply^{pertaining to the impugned demand} notice vide Lr.No.^{sEl oP} lcctHYD/^{SAo/AAo(HT)/JAO} (H.T)/D.No.7077 120.25,^{dated 31'OL'2O25'ssued to} the petitioner^{by the 2nd respondent herein' There shall} be no order^{as to costs.}

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As a sequel,^{themiscellaneouspetitions' if} any^{pending, in the Writ Petitionsha-ll :Lt9} =!gl9^c&ged. SD/.L.VIJAYA^LAKSHMI AS S ANT REGISTRAR /ffRUE^COPY// ECTION^OFFlCE

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To,

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1 The Distribution Chairman^{Company and Managing r-irii"'o-"6Irlisb' illinido'pound' Director' Telanglrna StateSouthem Secretariat PowerRoad'} 2 EIXSI?,?3nd'*^{Engineer,operation central circle' r-GSPDCL'ChandraVihar} 3 4 Ei=EritHl[,sl$:fi,-ft.ffiiry?rsxiq""tsBtlropuc 5 Two CD CoPies BN i

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I ,

CC TODAY

HIGH COURT

DATED:2010212025

ORDER