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Judgment
R. Banumathi, J.—Being aggrieved by the orders dated 16.5.2012 and 23.5.2012 passed in W.P. (MD)Nos.6798, 6799, 6800, 6801,
6973 and 6974 of 2012, permitting the respondent(s)/writ petitioner(s) to pay the Additional Security Deposit in twelve equal monthly instalments
along with regular current consumption charges, the Tamil Nadu Electricity Board have preferred these Appeals. Respondent(s)/Writ Petitioner(s)
are manufacturing yarn and are having HT Service Connection. The respondent(s)/writ petitioner(s) have already paid Security Deposit. As per
Regulation 5(5)(ii)(a) of the Tamil Nadu Electricity Supply Code, 2004, the Current Consumption Deposit should be two times of the monthly
average of the electricity charges for the preceding twelve months prior to April. On a review adequacy of the current consumption deposit at the
credit of HT supply to the respondent(s), as per Regulation 5(5)(ii)(a) of the Tamil Nadu Electricity Supply Code, the appellant called upon the
respondent(s) to pay additional current consumption deposit in one lumpsum on or before 17.5.2012. Additional Current Consumption Deposit to
be paid by the respondent(s) is as hereunder:
Sl. No. HT SC No. Name of the Mill Amount to be deposited
Rs.
177 M/s. Mani Spinning Mill68,15,193/-
(P) Ltd
282 M/s. Mani Spinning Mill64,94,404/-
(P) Ltd
168 M/s. Pavathal Spinning 24,76,781/-
Mill (P) Ltd
104 M/s .Eveready Spinning34,12,194/-
Mill (P) Ltd
60 M/s. Sathu Spinning Mill27,66,968/-
(P) Ltd
95 M/s. Sree 13,92,182/-
Jayasoundharam Textile
Mills (P) Ltd
Respondent(s) have filed individual Writ Petitions seeking Writ of Mandamus directing the Tamil Nadu Electricity Board to permit them to pay
the Additional Current Consumption Deposit in twelve equal monthly instalments. Considering the nature of the amount sought for to be paid, by
the orders dated 16.5.2012 and 23.5.2012, the learned single Judge directed the respondent(s) to pay the Additional Security Deposit in twelve
equal monthly instalments along with current consumption charges and further directed that the first installment shall commence on or before
21.5.2012 and subsequent instalments shall be paid on or before 10th of every succeeding month and in the event of failure to pay even one
installment within the time, the entire balance amount shall become payable.
Challenging the order of the Writ Court, Tamilnadu Electricity Board have preferred these Writ Appeals contending that the impugned order
passed is totally repugnant to Regulation 5(5)(ii)(a) of the Tamil Nadu Electricity Supply Code and that if the respondents are permitted to pay the
Additional Security Deposit in 12 instalments, it will defeat the provisions since the Additional Security Deposit is to be reviewed every year and
that is after every 12 months.
Learned counsel for the appellants, Ms. Srimathy, contended that the writ Court ought to have taken note of the amendment which was
introduced by the Tamil Nadu Electricity Regulation Commission in Regulation 5(5)(iv) of the Tamil Nadu Electricity Supply Code as per which,
the Additional Security Deposit is payable in three equal instalments and while the order of the learned single Judge granting relief is against the
express statutory provisions and is liable to be set aside.
Learned counsel for the respondent(s)/writ petitioner(s) would submit that since the Additional Security Deposit/CCD demanded is very high,
considering the amount involved Writ Court rightly permitted the respondent(s)/writ petitioner(s) to pay the amount in twelve equal instalments. It is
further submitted that the respondent(s)/writ petitioner(s) have already paid three instalments and that they may be permitted to pay the remaining
instalments.
We have considered the submissions and also the provisions of Electricity Supply Code 2004. As per Regulation 5(5)(ii) of the Tamil Nadu
Electricity Supply Code, the adequacy of security deposit shall be based on the periodicity of billing for the respective category. As per Regulation
5(5)(ii)(a), for the categories of consumer under monthly billing, the security deposit is equivalent to two times of the monthly average of the
electricity charges for the preceding twelve months prior to April. As per Regulation 5(5)(iv) as existed from 1.19.2004,
(iv) If available deposit is less than the revised Security Deposit, the balance shall be collected as Additional Security deposit either through a
separate notice or by a distinct entry in the consumer meter card for LT Services. Thirty days notice period shall be allowed for the payment. If the
payment is not received within the above period of thirty days, the service is liable for disconnection.
The above provision was substituted vide Notification No.TNERC/SC/7-20 dt.30.6.2010. Amended Regulation 5(5)(iv) reads as under:-
If available deposit is less than the revised Security Deposit, the balance shall be collected as Additional Security Deposit. Intimation of such
Additional Security Deposit shall be through a separate notice in the case of IIT services and by a distinct entry in the consumer meter card or
separate notice in the case of LT services. Thirty days notice period shall be allowed for the payment. However, on request by consumers, the
Licence is permitted to collect such Additional Security Deposit in three instalments commensurate with the billing cycle.
Thus, as per the amended provision, Additional Security Deposit should be collected in three instalments commensurate with billing cycle. When
the Electricity Supply Code stipulates the appellants to pay Additional Security Deposit in three instalments, the Writ Court was not right in
granting relief against the right in fixing twelve equal monthly instalments and such direction is in violation of the express statutory provisions.
It is to be pointed out that Regulation (5)(5)(iv) of the Tamil Nadu Electricity Supply Code forms the term of contract and the respondent(s) is
governed by the same, the purpose of adequacy of the current consumption deposit is re-viewable once in 12 months. The purpose of the review
and obtaining additional Security Deposit is to avoid any loss due to default in payment to current Consumption Charges. When the adequacy of
the current consumption deposit is reviewable once in 12 months, permitting the respondent(s)/writ petitioner(s) to pay additional Security Deposit
in twelve instalments will defeat the very provision since the Additional Security Deposit is to be reviewed every year that is after every 12 months.
The direction issued by the Writ Court is against the express statutory provisions of the Tamil Nadu Electricity Supply Code and the same cannot
be sustained and is liable to be set aside. It was stated that the respondent(s)/writ petitioner(s) have paid three instalments as per the order of the
Writ Court and the remaining amount is payable in three equal instalments commencing from August, 2012. So far as the remaining amount, the
first installment is payable on or before 10th of August, 2012, the second installment shall be payable on or before 10th September, 2012 and the
third installment is payable on or before 10th October, 2012. Failure to pay any one of the instalments, it is open to the appellant Electricity Board
to proceed against the respondent(s)/writ petitioner(s) in accordance with law. Accordingly, the order of the Writ Court is modified and the Writ
Appeals are partly allowed. No costs. Connected Miscellaneous Petitions are closed.