M.M.Mohiuddin v. The Chairman And Managing Director

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 24.07.2023

CORAM

MR.JUSTICE N.SESHASAYEE and W.M.P.Nos.23974, 23976 and 23977 of 2023 1.M.M.Mohiuddin 2.Shameem Mohiuddin ... Petitioners Vs.

1.The Chairman and Managing Director No.825, Link Road Anna Salai, Triplicane 2.The Chief Engineer Distribution / Chennai North Region Anna Salai 3.The Executive Engineer O & M / Anna Nagar North 1/6

4.The Assistant Executive Engineer O & M/ Anna nagar CEDC / West 5th Street, H Block, Anna Nagar ... Respondents PRAYER: The writ petition filed under Article 226 of the Constitution of India, for issuance of a writ of Certiorari, to call for the records relating to the proceedings in letter dated 01.12.2020 in Lr.No.AEE/O & M/Anr/CI/F.EOS. Mohiuddin & Shameem/D.No.151/20 of the 4th respondent herein and quash the same.

For Petitioner : Mrs.A.L.Gandhimathi Senior Counsel for Mr.Karthik Lakshmanan For Respondents : Mr.L.Jaivenkatesh Standing Counsel - R1 to R4

ORDER

The petitioners herein together own separate blocks of land, totally 11596 sq. ft. They entered into a development agreement, by which an apartment comprising four floors and 12 dwelling units were constructed. The petitioners, thereafter made an application to the 4th respondent to install a RMU with 250 KVA. Response to the same, the 4th respondent raised a 2/6

demand for Rs.30,40.030/- vide its proceedings dated 15.09.2020. The petitioners herein made a representation dated 21.09.2020, wherein they had indicated that the demand was exorbitant and requested him to reconsider his demand. The 4th respondent would now come out with a communication dated 01.12.2020, where under he increased the earlier demand by couple of lakhs and he made a demand for Rs.32,65,990/- and the break up is as below;

Sl.No.

Description Amount 1.

Meter caution Deposit - A/c. code.47.504 32,400.00 2.

Current consumption deposit - A/c.code.48.01 79,200.00 3.

Development charges - A/c. code.47.501 3,30,000.00 4.

Estimate charges 28,24,390.00 Total Amount 32,65,990.00 2.The petitioners now challenge the levy of development charges and estimate charges, which together would constitute Rs.31,54,390/- . 3.Learned counsel for the petitioners places before the Court the order made in M.P.No.2 of 2021 by TNERC dated 09.11.2021, the Commission has restrained TANGEDCO from charging Extension cost or estimate charges 3/6

directly or indirectly. The learned counsel also places another order of the TNERC in M.P.No.34 of 2022 dated 23.05.2023. The latter mentioned order, the Commission has made a reference to that earlier mentioned proceedings and submitted that the Commission has reiterated its earlier stand and that the TANGEDCO cannot collect any development charges. That the cumulative effect of M.P.No.2 of 2021 and M.P.No.34 of 2022 is that, TANGEDCO can neither claim any estimate charges nor any development charges.

4.Per contra, the learned standing counsel appearing for TANGEDCO brought to the notice of the Court the paragraph No.4.26 (h) of the order in M.P.No.34 of 2022, which requires payment of extension cost or estimate charges.

5.TNERC, the entity which in terms of the Electricity Act which is entrusted to the authority to fix tariff etc. has come out with two categorical statements, that the licensee shall not charge any extension cost or estimate charges. The present claim made by TANGEDCO goes against the letter and 4/6

tenor of the orders of TNERC in M.P.No.2 of 2021 and M.P.No.34 of 2022. Therefore, on the face of it, the demand made by the respondents dated 01.12.2021 cannot be sustained. This Court is also informed that subject to the outcome of this litigation, the petitioners have already made the payment of Rs.32,65,990/- to TANGEDCO as per the interim order passed by this Court. Now, TANGEDCO is duty bound to refund a sum of Rs.31,54,390/- back to the petitioners.

6.This writ petition is accordingly allowed. No costs. Consequently, the connected miscellaneous petitions are closed. 24.07.2023 kas Index : Yes / No Copy to:

1.The Chairman and Managing Director No.825, Link Road Anna Salai, Triplicane 5/6

N.SESHASAYEE, J.

kas 2.The Chief Engineer Distribution / Chennai North Region Anna Salai 3.The Executive Engineer O & M / Anna Nagar North 4.The Assistant Executive Engineer O & M/ Anna nagar CEDC / West 5th Street, H Block, Anna Nagar and W.M.P.Nos.23974, 23976 and 23977 of 2023 24.07.2023 6/6