The Hindu Business Line : TNEB order imposing conditions on tariff sops set aside

Chennai, Nov. 19 The Madras High Court has set aside the memo of June 10, 2008 of the Tamil Nadu Electricity Board imposing conditions, contrary to directions of the Supreme Court, for grant of tariff concession to electricity consumers.

The State Government granted the tariff concessions from February 1, 1995 to new units, but subsequently, the relief to high tension industries was withdrawn from February 15, 1997. The Government said that HT units shall not be eligible for the concession on or after February 14, 1997. Some of the industries filed writ petitions challenging the Government order and said that they had altered their position by starting units before February 14, 1997 only to avail themselves of the concession. A Division Bench of the High Court directed the Electricity Board (EB) to deal with claims in accordance with its judgment. It is against this order, the EB went on appeal to the apex court.

SC judgment

The Supreme Court in its judgment (2008 7 SCC 353) directed, inter alia, that the tariff concession must be made applicable to the industries that had not only started commercial production before February 14, 1997, but also had applied and were otherwise ready to take electrical concessions having deposited the amount asked for. The matter would now be examined by the appropriate authority of the EB as directed by the High Court. The petitioners contended in the High Court that even before the appropriate authorities of the EB could consider merits of individual claims, the EB issued a circular on June 10, 2008.

One of the stipulations was that HT consumers seeking concession should have obtained certificate from the Chief Electrical Inspector to Government (CEIG) before February 15, 1997, which was the cut-off date when the concession was withdrawn.

The petitioners said the EB memo was unwarranted. In the name of interpreting the order of the apex court, the EB had put spokes in the implementation of the court’s order. Nowhere had the apex court directed that the petitioners must possess the certificate of CEIG. Also, the apex court did not go into the merits of individual cases, but it only directed to examine such claims by the appropriate authority.

The Additional Advocate General, on behalf of the EB, submitted that Rule 63 of Indian Electricity Supply Rules, 1956 clearly stipulated an approval by Inspector as a pre-condition for supplying electricity. Therefore, there was nothing wrong in the EB issuing the impugned circular.

No reference made

Mr Justice K. Chandru who heard the petitions held that the impugned order of the EB did not stand scrutiny of law. It was in violation of the apex court’s directions. No reference was made regarding compliance of Rule 63 as a pre-requisite for granting tariff concession. Also, the directions of EB to appropriate authorities that they should not receive any fresh records from consumers went beyond one’s comprehension. The impugned order of EB was a wrong interpretation of the apex court’s decision, and it prohibited appropriate authorities to decide claims of consumers. Therefore, the order would have to be necessarily set aside. Hence, it would stand set aside.

The Judge ruled that the following petitioners were entitled to avail themselves of the tariff concession: India Cements Ltd, Jay Jay Lines (P) Ltd and Varalakshmi Starch Industries P Ld. The requests of Marshal Textiles P Ltd, Manneswara Textiles P Ltd, and Nallam Textiles P Ltd. should be considered in the light of facts of cases.

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