ULTRA TECH CEMENT LTD Vs. TAMIL NADU

JUDGEMENT

(1.) The demand notice issued by the respondent / TANGEDCO invoking the terms and conditions of Memorandum of Understanding executed at Headquarters / TNEB with the petitioner company and the TANGEDCO is under challenge in the present writ petition.

(2.) The petitioner is a company and the manufacturer of cement. The petitioner states that they produce cement of high quality and manufacture of cement involves several raw materials including gypsum and fly ash. In this regard, admittedly, the contract was signed between the petitioner company and the respondent TANGEDCO. Based on the Memorandum of Understanding between the parties, the petitioner has to install, erect and maintain collection system and storage of fly ash with its cost at MTPS and thereafter to collect fly ash for a period of nine years from the date of commissioning of the system.

(3.) In pursuance of the said MOU, which has a validity period of 9 years from the date of commissioning, the petitioner has been diligently carrying out its obligations in collecting the fly ash. While so, the 3rd respondent issued impugned communications dtd. 5/8/2009, 23/8/2010 and 23/9/2010 stating that the alleged percentage of collection of fly ash is lesser than the stipulated 100% in terms of the MOU and thereby levying a penalty for the said period.