HON'BLE SRI JUSTICE C.V.NAGARJUNA REDDY WRIT PETITION No.26977 of 2014 Date:20.10.2014 Between:
M/s T.Poineer Torsteel (P) Ltd., Bollaram, reptd by its Deputy General Manager (Admn)-B.Sitharamanujaneyulu And:
The Southern Power Distribution Company of Telangana Ltd, reptd by its Managing Director and three others.
Counsel for the Petitioner: Sri D.V.Nagarjuna Babu Counsel for the Respondents: Sri S.V.Ramana For Sri O.Manoher Reddy The Court made the following:
ORDER:
. Petitioner . Respondents This Writ Petition is filed for a Mandamus to set aside letter No.CGM(Com)/SE(C)/DE(C)/ADE-III/D.No.881/14, dated 25.08.2014, of respondent No.2 in so far as it relates to payment of Fuel Surcharge Adjustment (FSA) charges for the year 2008-09 to a tune of Rs.37,82,160/- and the wheeling charges for Rs.75,49,508/- payable by M/s Rain Calcining Limited.
The petitioner is a consumer of the respondents. Consequent on its becoming sick, the petitioner has approached the respondents for extending certain facilities including deferred payment of arrears of electricity charges under Sick Unit Revival Scheme. Respondent No.2 has, accordingly, issued memo No.CGM(Coml)/SE(C)/DE(C)/ADE-III/D.No.614/14, dated 28.07.2014, whereunder he has announced certain measures for restoration of power supply, subject to the petitioner complying with the conditions stipulated therein. When the petitioner approached respondent No.2, vide its representation, dated 31.07.2014, for restoration of power supply, he has informed the petitioner that it is liable to pay a sum of Rs.1,13,41,668/- towards FSA and wheeling charges and a sum of Rs.96 lakhs towards development charges. It is represented that the petitioner filed Writ Petition No.2694 of 2011 questioning the FSA charges for the financial year 2008-09 and that a batch of Writ Petitions were allowed by a learned single Judge of this Court on 29.07.2011 and that the same was confirmed by a Division Bench of this Court in Jairaj Ispat Ltd., Hyd Vs. A.P.Regulatory Commission, Hyd, and that the SLPs filed against the said judgment are pending in the Supreme Court. The petitioner further pleaded that the Division Bench has granted interim order only to the extent of staying refund of the FSA charges already collected by the licensee.
As regards the wheeling charges, it is the case of the petitioner that it was receiving power supply from an independent power generator by name M/s Rain Calcining Limited and that a Division Bench of this Court in RCI Power Limited, Chennai Vs. Union of India and others has set aside the enhancement of wheeling charges and that the SLP filed against the said judgment is pending before the Supreme Court. The petitioner further pleaded that besides the said judgment, which covers the case of M/s Rain Calcining Limited, the said company has also filed Writ Petition No.2190 of 2005 and that this Court by order, dated 19.02.2005, in WPMP.No.2931 of 2005 filed in the said Writ Petition has granted interim direction that the collection of wheeling charges will be strictly in accordance with the terms of the modified Wheeling and Power Purchase agreement.
Sri D.V.Nagarjuna Babu, learned counsel for the petitioner, submitted that in respect of FSA charges, his client has succeeded before this Court and that the said judgment is in force to the extent of recovery of FSA charges already collected from the petitioner. As regards the wheeling charges, he has submitted that while his client is not concerned with the payment of the wheeling charges, in view of the fact that he has only purchased power from M/s Rain Calcining Limited and that at any rate, the said company has succeeded in getting the additional payment of wheeling charges set aside by the Division Bench of this Court and in addition to the same, it has also secured an interim order in Writ Petition No.2190 of 2005.
With regard to the Development charges, learned counsel for the petitioner submitted that as the said aspect is not the subject matter of this Writ Petition, the respondents may be directed not to insist on payment of Rs.1,13,41,668/- demanded towards FSA charges and wheeling charges as a condition for implementing memo No.CGM(Coml)/SE(C)/DE(C)/ADE-III/D.No.614/14, dated 28.07.2014 issued by respondent No.2. He further submitted that his client reserves its right to question the demand of Development charges in a separate proceedings.
Sri S.V.Ramana, learned counsel representing Sri O.Manoher Reddy, learned Standing Counsel for Southern Power Distribution Company of Telangana Limited, did not dispute the above submissions of the learned counsel for the petitioner.
Inasmuch as the amount of Rs.1,13,41,668/- is covered by separate judgments, under which the petitioner was held not liable to pay the FSA charges and its supplier was held not liable to pay wheeling charges and the disputes are pending before the Supreme Court, the respondents are not entitled to recover the said amount at present, unless they succeed in the Supreme Court in both the batches of cases.
With regard to Development charges, as the same is not the subject matter of this Writ Petition, no direction can be issued.
For the above-mentioned reasons, the Writ Petition is allowed to the extent of the demand made by the respondents towards FSA charges and wheeling charges and the impugned letter No.CGM(Com)/SE(C)/DE(C)/ADE-III/D.No.881/14, dated 25.08.2014, of respondent No.2 is set aside to that extent only, leaving the petitioner free to avail its remedy relating to Development charges.
As a sequel to disposal of the Writ Petition, W.P.M.P.No.33732 of 2014 filed by the petitioner for interim relief stands disposed of as infructuous.
JUSTICE C.V.NAGARJUNA REDDY
20th October, 2014 DR