Justice V Dhanapalan, allowing the plea of the Mettupalayam-based M/s Sharadha Terry Products Limited, said: "When EB was specifically forbidden by the authority, any amount collected in violation of such orders is illegal. EB cannot be allowed to justify its action, after demanding the refund. The reason given by the board to reject the refund claim is arbitrary and without application of mind."
The company, started in 1994, originally applied for supply of 2,000KVA power. It was sanctioned only 1,350 KVA. In July '07, it surrendered power supply and installed a captive power plant. Its deposit amount of about '54 lakh was retained by the TNEB. After finding captive power production unviable, the company decided to revert back to HT power supply in February '08, and sought 6,000-KVA. As '48 lakh was to be paid as earnest money deposit, it asked the board to adjust the sum from its earlier deposit. In September 2008, TNEB asked the company to pay '1.15 crore asservice connection charges and '21 lakh towards development charges.
Meanwhile, the Tamil Nadu Electricity Regulatory Commission (TNERC) passed an order directing the EB to stop collecting service connection charge-s. Though the EB received the order, they did not communicate it to the company, which deposited the amount. On learning about the TNER's stay, the company demanded refund of the excess amount. But, the EB said the company was not eligible for refund.
Justice Dhanapalan, said the order issued by the chief engineer and the Coimbatore circle superintending engineer was "ex facie illegal, unjust, without authority of law and contrary to the provisions of the Electricity Act 2003, and the specific orders of the State Electricity Regulatory Commission."
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