Madras High Court Allows Electricity Board's Appeal in Monthly Minimum Charges Dispute — Remands to Civil Court for Factual Adjudication. Disputed facts regarding readiness to avail HT supply require trial, not writ jurisdiction under Article 226.

High Court: Madras High Court In Favour of Prosecution
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Case Note & Summary

The case involves two writ appeals filed by the Tamil Nadu Electricity Board against a common order dated 25.07.2022 in W.P.Nos.36209 of 2007 and 23556 of 2008, where the writ Court allowed the petitions filed by Khivaraj Tech Park Private Limited challenging demand notices for monthly minimum charges under Clause 31 of TNERC Electricity Distribution Code. The respondent had obtained HT supply connection but did not commence consumption. The Board issued demand notices on 28.04.2007 and 07.08.2007 stating that Board side works were completed and requiring the respondent to avail supply within three months, failing which monthly minimum charges would be payable. The respondent disputed the readiness and completion of works, leading to the writ petitions. The writ Court allowed the petitions, quashing the demand notices. The Board appealed, arguing that disputed facts regarding readiness to avail supply cannot be decided in writ jurisdiction. The High Court agreed, holding that the writ Court erred in entertaining the petitions as there were serious disputed questions of fact requiring trial and evidence. The court set aside the writ order and remanded the matter to the civil court for adjudication, granting liberty to the respondent to file a civil suit. The appeals were allowed, and the parties were directed to bear their own costs.

Headnote

A) Constitutional Law - Writ Jurisdiction - Disputed Questions of Fact - Article 226 of the Constitution of India - The High Court held that disputed facts regarding readiness to avail electricity supply cannot be adjudicated in writ proceedings, as they require trial and evidence. The writ Court ought not to have entertained the petitions and should have relegated the parties to civil court. (Paras 3-5)

B) Electricity Law - Monthly Minimum Charges - Clause 31 of TNERC Electricity Distribution Code - The court noted that the demand for monthly minimum charges is based on contractual agreement between parties under Clause 31. The disputed facts regarding completion of Board side works and readiness of the respondent to avail supply are crucial for recovery. (Paras 2-4)

C) Civil Procedure - Alternative Remedy - Existence of Civil Suit - The court held that when disputed facts exist, the appropriate remedy is a civil suit, not a writ petition under Article 226. The writ Court's order was set aside and the parties were relegated to civil court. (Paras 5-6)

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Issue of Consideration

Whether disputed facts regarding readiness to avail electricity supply can be adjudicated in writ proceedings under Article 226 of the Constitution of India, and whether the Electricity Board is entitled to recover monthly minimum charges under Clause 31 of TNERC Electricity Distribution Code.

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Final Decision

The writ appeals are allowed. The common order dated 25.07.2022 in W.P.Nos.36209 of 2007 and 23556 of 2008 is set aside. The respondent is at liberty to file a civil suit before the competent civil court. No costs. Consequently, connected miscellaneous petitions are closed.

Law Points

  • Writ jurisdiction not appropriate for disputed facts
  • Monthly minimum charges under Clause 31 of TNERC Electricity Distribution Code
  • Remedy of civil suit available
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Case Details

2026 LawText (MAD) (03) 285

W.A.Nos. 1928 and 1936 of 2023 and C.M.P.Nos.16574 and 16609 of 2023

2026-03-03

S. M. Subramaniam, K. Surender

2026:MHC:931

Mr.P.Wilson, Senior Counsel for Mr.L.Jaivenkatesh (for appellants), Mr.Rahul Balaji (for respondent)

The Superintending Engineer, Tamil Nadu Electricity Board, CEDC – South 110 KV K.K.Nagar, Chennai and The Executive Engineer, Tamil Nadu Electricity Board, O & M Guindy, Chennai

Khivaraj Tech Park Pvt.Ltd., Rep.by its General Manager – Operations, Mr.A.Lakshminarayanan

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Nature of Litigation

Writ appeals against order allowing writ petitions challenging demand notices for monthly minimum charges under electricity supply agreement.

Remedy Sought

Appellants (Electricity Board) sought setting aside of the writ order and dismissal of the writ petitions; respondent sought quashing of demand notices.

Filing Reason

Dispute over recovery of monthly minimum charges under Clause 31 of TNERC Electricity Distribution Code due to alleged non-readiness of respondent to avail HT supply.

Previous Decisions

Writ Court allowed W.P.Nos.36209 of 2007 and 23556 of 2008 on 25.07.2022, quashing the demand notices.

Issues

Whether disputed facts regarding readiness to avail electricity supply can be adjudicated in writ proceedings under Article 226? Whether the Electricity Board is entitled to recover monthly minimum charges under Clause 31 of TNERC Electricity Distribution Code?

Submissions/Arguments

Appellants argued that disputed facts regarding readiness to avail supply require trial and cannot be decided in writ jurisdiction; demand notices were issued after completion of Board side works. Respondent contended that Board side works were not completed and they were not ready to avail supply, thus monthly minimum charges not payable.

Ratio Decidendi

Disputed questions of fact cannot be adjudicated in writ proceedings under Article 226; the appropriate remedy is a civil suit where evidence can be adduced. The writ Court erred in entertaining the petitions and quashing the demand notices without trial.

Judgment Excerpts

Under assail is the writ order dated 25.07.2022 passed in W.P.Nos. 36209 of 2007 and 23556 of 2008. The learned Senior Counsel ... mainly contends that the disputed facts regarding the readiness of the respondent to avail of the electricity supply provided by the Board is the crucial issue to be considered for recovery of monthly minimum charges. Such disputed facts, if decided based on certain pleadings of the respondent, then, the Board is deprived of exercising its right to recover monthly minimum charges, which is agreed between the parties based on Clause 31 of TNERC Electricity Distribution Code.

Procedural History

The respondent filed W.P.Nos.36209 of 2007 and 23556 of 2008 challenging demand notices for monthly minimum charges. The writ Court allowed the petitions on 25.07.2022. The Electricity Board filed intra-Court appeals under Clause 15 of Letters Patent on 03.03.2026, which were allowed by the Division Bench.

Acts & Sections

  • Constitution of India: Article 226
  • TNERC Electricity Distribution Code: Clause 31
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