JSA successfully represented Rain Cements Limited (“Rain”) before High Court of Telangana in a Writ Appeal. The brief issue involved is whether Cross Subsidy Surcharge can be levied on a generator/consumer, where such generator/consumer is covered by the exemption granted under the Ministry of Power (Removal of Difficulties) 2nd Order, 2005 while operating under a valid consent granted by competent government under Section 43A(1)(c) of the Electricity (Supply) Act, 1948.
Despite Rain having produced the valid consent granted under Section 43A(1)(c) of the Electricity (Supply) Act, 1948, the Southern Telangana Discom issued Demand Notices levying Cross Subsidy Surcharge for the period FY 2005-06 to FY 2014-15. Rain filed a Writ Petition before the Single Judge seeking such Demand Notices to be quashed alongside interim protection from disconnection of electricity supply. The Single Judge of the High Court of Telangana, by Order dated 26.08.2025, granted protection against disconnection of electricity supply, but, a condition was imposed on Rain to deposit 50% of the impugned levy of Cross Subsidy Surcharge.
On behalf of Rain, JSA challenged the Single Judge’s Order dated 26.08.2025 before the Division Bench of High Court of Telangana. The key legal submission was that once a generator/consumer is covered by Ministry of Power’s Electricity (Removal of Difficulties) 2nd Order, 2005 then it is fully exempted from payment of Cross Subsidy Surcharge.
Allowing Rain’s Writ Appeal, by an Order dated 03.09.2025, the Division Bench of High Court of Telangana: –
- Set-aside the Single Judge’s Order dated 26.08.2025 including the condition imposed on Rain to deposit 50% of the impugned levy of Cross Subsidy Surcharge.
- Granted status quo for a period of 2 weeks and remanded the matter to Single Judge to consider all submissions and pass a reasoned/speaking order.
This is a notable order. Out of several similarly placed consumers in the state of Telangana, it is ONLY Rain which is now protected in the form of full exemption from payment of any Cross Subsidy Surcharge as an interim measure, while Appeals filed by other consumers were dismissed by the Division Bench of the High Court.
Our disputes team comprised Lead Partner, Poonam Verma Sengupta, Principal Associate, Saunak Kumar Rajguru and Associate, Pradyumn Amit Sharma.
Poonam has been actively involved in the disputes and corporate practice of the firm with primary focus in the Energy and Transportation Sector. For around two decades with the firm, Poonam has specialized in Power and Aviation Sectors.