M/S. Duet India Hotels (Hyderabad) Pvt … vs Southern Power Distribution Company Of … on 16 July, 2026

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    Telangana High Court

    M/S. Duet India Hotels (Hyderabad) Pvt … vs Southern Power Distribution Company Of … on 16 July, 2026

           IN THE HIGH COURT FOR THE STATE OF TELANGANA
                           AT HYDERABAD
    
             The Hon'ble The Chief Justice Sri Aparesh Kumar Singh
                                      and
                    The Hon'ble Sri Justice G.M.Mohiuddin
                          Writ Appeal No.706 of 2026
                               Dated: 16.07.2026
    
    Between:
    
    M/s. Duet India Hotels (Hyderabad) Pvt. Limited
    A company registered under Companies Act, 2013
    Having its office at Survey No.27/1 to 27/4 Adjacent Del,
    Nanakramguda, Gachibowli, Hyderabad,
    Rep. By its Authorised Signatory Mr. Elezar Prakash Pilli
    S/o. Pilli Rajendra Prasad
                                                                ... Appellant
                                     AND
    
    Southern Power Distribution Company of Telangana State Limited,
    Represented by its Superintending Engineer (Operation Circle North),
    Mint Compound, Hyderabad and another
    
                                                            ... Respondents
    JUDGMENT:

    Heard Mr. V. Hariharan, learned Senior Counsel appearing for

    Mr. Srikanth Hariharan, learned counsel for the appellant/writ

    SPONSORED

    petitioner and Mr. N. Sreedhar Reddy, learned Standing Counsel for

    Telangana State Southern Power Distribution Company Limited

    (TGSPDCL), appearing for the respondents.

    2. By the impugned judgment dated 07.07.2026 rendered in

    W.P.No.3757 of 2026, the learned writ Court has dismissed the Writ
    ::2::

    Petition on the finding that there is no illegality in the impugned

    demand notice dated 20.08.2025 issued upon the appellant levying an

    amount of Rs.2,86,94,175/- (Rs.95,27,524/- principal amount +

    Rs.1,91,66,651/- surcharge) and to pay the same within 15 days from

    the date of issue of the letter, failing which supply to HT service of the

    appellant would be disconnected without further notice.

    3. Earlier, the appellant had approached the writ Court in

    W.P.No.21683 of 2014 against a demand notice charging three times

    the normal tariff for non-production of Occupancy Certificate (OC)

    issued by the Greater Hyderabad Municipal Corporation (GHMC).

    The learned writ Court vide interim order dated 05.08.2014 directed the

    respondent-company not to collect any penal charges in respect of the

    electricity connection bearing No.RRN-2669 of the appellant.

    However, the respondent-company was not precluded from collecting

    regular electricity charges every month. The said Writ Petition was

    closed finally by order dated 06.02.2020 recording the submissions of

    the learned Standing Counsel for the respondent-company that in view

    of the interim order passed on 05.08.2014, no further orders are

    required to be passed in the Writ Petition. The order dated 06.02.2020

    is extracted hereunder:

    ::3::

    “When the matter is taken up for hearing, learned Standing
    Counsel appearing for the respondents submits that in view of the interim
    order passed on 05.08.2014, no further orders are required to be passed in
    this writ petition.

    By recording the submission made by the learned Standing
    Counsel appearing for the respondents, the writ petition is closed. No order
    as to costs.”

    4. The respondent-company thereafter has proceeded to issue the

    demand notice dated 20.08.2025, which is the subject matter of the

    instant W.P.No.3757 of 2026. The respondent-company justified the

    demand inter alia on the following grounds:

    i) That the penal charges were levied three times the normal tariff for
    non-production of OC by the appellant for a period of seven months
    from April, 2014 to October, 2014.

    ii) That the impugned demand is based upon G.O.Ms.No.86 dated
    03.03.2006, issued in terms of Section 108 of the Electricity Act,
    2003, which provides that the State Commission shall be guided by
    such directions in matters of policy involving public interest as the
    State Government may give to it in writing.

    iii) That the present Writ Petition is barred by res judicata as
    W.P.No.21683 of 2014, wherein similar demand notice impugned by
    the appellant was closed without setting aside the said demand
    notice. Therefore, the respondent-company was justified in issuing
    the demand notice by levying penal charges three times the normal
    tariff for the period for which the appellant has failed to produce the
    OC from the GHMC.

    5. Learned Senior Counsel appearing for the appellant, on the other

    hand, has drawn the attention of this Court to the observations made by

    the learned writ Court in the case of another assessee in W.P.No.32906

    of 2014 by judgment dated 05.11.2014, wherein a similar challenge to

    demand of electricity consumption charges at three times the normal

    electricity charges was raised on the ground that the petitioner therein
    ::4::

    has not secured OC from the GHMC. He submits that the writ Court

    had held that so long as the licensee under the provisions of the

    Electricity Act, 2003, does not amend its supply regulations/conditions

    in tune with the Government policy qua levy and collection of tariff

    higher than that prescribed under its Regulations, such levy cannot be

    legally sustained. Being a licensee, it cannot charge its consumers

    higher tariff than what is prescribed by the tariff regulations, approved

    by the Regulatory Commission. The learned writ Court had however

    before closing the case also observed that power distribution licensee

    can insist upon obtaining OC, which is mandatory under Section 455 of

    the GHMC Act, 1955 and if the assessee fails to produce such

    certificate, it shall be free to disconnect the power supply to him and

    terminate the power supply agreement. The respondent-company is also

    free to refuse release of power supply to other similarly situated

    consumers if they failed to produce OCs within a stipulated time. It is

    submitted that this judgment delivered in the case of another assessee

    on similar circumstances against the respondent-company binds the

    respondent-company and cannot be treated as in personam. It is further

    submitted that closure of W.P.No.21683 of 2014 on the submissions of

    the learned Standing Counsel for respondent-company would not
    ::5::

    operate as res judicata. None of the issues raised in the said Writ

    Petition were decided by the learned writ Court on the submissions of

    the respondent-company. Therefore, on issuance of fresh demand

    notice, the present Writ Petition has been filed on the ground that the

    respondent-company cannot charge penal tariff three times the normal

    tariff for the period for which OC could not be produced by the

    appellant. Learned writ Court had therefore committed serious error in

    not granting relief to the appellant. In support of his submissions on the

    issue of res judicata, learned Senior Counsel has placed reliance on a

    decision of the Honourable Supreme Court in Delhi Development

    Authority v. Corporation Bank and others1.

    6. We have heard learned counsel for the parties, considered the

    facts and circumstances and the previous proceedings, as also the order

    passed in W.P.No.32906 of 2014 by the learned writ Court in similar

    circumstances.

    7. In the first place, we are of the view that closure of

    W.P.No.21683 of 2014 does not operate as res judicata for the

    appellant to maintain the present Writ Petition. A plain reading of the

    order dated 06.02.2020 passed in W.P.No.21683 of 2014 would show

    1
    AIR 2025 SC 4583
    ::6::

    that the Writ Petition was closed on the submission of the learned

    Standing Counsel for the respondent-company that in view of the

    interim order passed on 05.08.2014, no further orders were required to

    be passed in the Writ Petition. The impugned demand though was not

    quashed, but an impression could be gathered that in view of the

    interim order, the respondent-company was not inclined to press for

    recovery of penal charges on non-production of OC for a certain period.

    In the absence of any determination on the legality of the penal charges

    based upon G.O.Ms.No.86 dated 03.03.2006, the challenge to the

    impugned demand could not be refused on the principles of res

    judicata.

    8. In order to appreciate whether the writ petition suffered on

    grounds of res judicata, we may also extract Section 11 of CPC which

    reads as under:

    “Res judicata.- No Court shall try any suit or issue in which the
    matter directly and substantially in issue has been directly and
    substantially in issue in a former suit between the same parties, or
    between parties under whom they or any of them claim, litigating
    under the same title, in a Court competent to try such subsequent
    suit or the suit in which such issue has been subsequently raised,
    and has been heard and finally decided by such Court.”

    The object of the principles of res judicata as contained in

    Section 11 of CPC is to uphold the rule of conclusiveness of judgment,

    as to the points decided earlier of fact, or of law, or of fact and law, in
    ::7::

    every subsequent suit between the same parties. The doctrine of res

    judicata is conceived not only in larger public interest which requires

    that all litigation must, sooner than later come to an end but is also

    founded on equity, justice and good conscience [See Swamy

    Atmananda versus Sri Ramakrishna Tapovanam, (2005) 10 SCC

    51]. Paragraphs 26 to 28 of the said judgment are extracted hereunder:

    “26. The object and purport of the principle of res judicata as
    contended in Section 11 of the Code of Civil Procedure is to
    uphold the rule of conclusiveness of judgment, as to the points
    decided earlier of fact, or of law, or of fact and law, in every
    subsequent suit between the same parties. Once the matter which
    was the subject matter of lis stood determined by a competent
    court, no party thereafter can be permitted to reopen it in a
    subsequent litigation. Such a rule was brought into the statute-
    book with a view to bring the litigation to an end so that the other
    side may not be put to harassment.

    27. The principle of res judicata envisages that a judgment of a
    court of concurrent jurisdiction directly upon a point would create
    a bar as regards a plea, between the same parties in some other
    matter in another court, where the said plea seeks to raise afresh
    the very point that was determined in the earlier judgment.

    28. The doctrine of res judicata is conceived not only in larger
    public interest which requires that all litigation must, sooner than
    later, come to an end but is also founded on equity justice and
    good conscience.”

    9. The principles of res judicata envisages that a judgment of court

    of concurrent jurisdiction directly upon a point would create a bar as

    regards a plea, between the same parties in some other matter in another

    court, where the said plea seeks to raise afresh the very point that was

    determined in the earlier judgment. Issues of fact finally determined
    ::8::

    between the parties by a court of competent jurisdiction operate as res

    judicata when the same issue comes directly in question in subsequent

    proceedings between the same parties. Principles of res judicata apply

    in different stages of the same proceedings as between two stages in the

    same litigation so that if an issue has been decided at an earlier stage

    against a party, it cannot be allowed to be re-agitated by him at a

    subsequent stage in the same suit or proceeding. [See Bhanu Kumar

    Jain versus Archana Kumar, (2005) 1 SCC 787] Paragraphs 18, 19,

    30 to 32 of the same are extracted hereunder:―

    “18. It is now well settled that principles of res judicata apply in
    different stages of the same proceedings. (See Satyadhyan
    Ghosal v. Deorajin Debi
    [AIR 1960 SC 941 : (1960) 3 SCR
    590] and Prahlad Singh v. Col
    . Sukhdev Singh [(1987) 1 SCC
    727])

    19. In Y.B. Patil [(1976) 4 SCC 66] it was held: (SCC p. 68, para

    4)
    “4. … It is well settled that principles of res judicata can be
    invoked not only in separate subsequent proceedings, they also get
    attracted in subsequent stage of the same proceedings. Once an order
    made in the course of a proceeding becomes final, it would be binding
    at the subsequent stage of that proceeding.”

    30. Res judicata debars a court from exercising its jurisdiction to
    determine the lis if it has attained finality between the parties
    whereas the doctrine issue estoppel is invoked against the party.
    If such an issue is decided against him, he would be estopped
    from raising the same in the latter proceeding. The doctrine of res
    judicata creates a different kind of estoppel viz. estoppel by
    accord.

    31. In a case of this nature, however, the doctrine of “issue
    estoppel” as also “cause of action estoppels” may arise. In
    Thoday Lord Diplock held: (All ER p. 352 B-D)
    “……. ’cause of action estoppel’, is that which prevents a party
    to an action from asserting or denying, as against the other party, the
    ::9::

    existence of a particular cause of action, the non-existence or existence
    of which has been determined by a court of competent jurisdiction in
    previous litigation between the same parties. If the cause of action was
    determined to exist i.e. judgment was given on it, it is said to be merged
    in the judgment…….. If it was determined not to exist, the unsuccessful
    plaintiff can no longer assert that it does; he is estoppel per rem
    judicatam”.

    32. The said dicta was followed in Barber v. Staffordshire County
    Council (1996) 2 All ER 748 (CA). A cause of action estoppel
    arises where in two different proceedings identical issues are
    raised, in which event, the latter proceedings between the same
    parties shall be dealt with similarly as was done in the previous
    proceedings. In such an event the bar is absolute in relation to all
    points decided save and except allegation of fraud and collusion.
    [See C.(A Minor) v. Hackney London Borough Council,
    (1996) 1 All ER 973 : (1996) 1 WLR 789 (CA)].”

    10. Therefore, Section 11 of CPC provides that no Court shall try

    any suit or issue in which the matter directly and substantially in issue

    has been directly and substantially in issue in a former suit between the

    same parties, or between parties under whom they or any of them

    claim, litigating under the same title, in a Court competent to try such

    subsequent suit or the suit in which such issue has been subsequently

    raised, and has been heard and finally decided by such Court.

    Constructive res judicata which flows out of Explanation IV of Section

    11 of CPC deals with grounds of attack and defence which ought to

    have been raised but not raised.

    11. It is not in dispute that the Electricity Regulatory Commission

    has not amended the tariff order to provide collection of higher tariff

    than what is prescribed under its regulations on the ground of non-

    ::10::

    production of OC, which is a mandatory requirement under Section 455

    of the GHMC Act and would entitle the respondent-company to refuse

    power supply or even to disconnect the power supply and terminate the

    agreement in respect of an assessee, who fails to produce it within the

    stipulated time. Beyond that, if the tariff regulations do not provide for

    levying penal charges three times the normal charges for non-

    production of OC, such a levy would be without any authority of law.

    The learned writ Court has been guided by the order dated 06.02.2020,

    passed in W.P.No.21683 of 2014, which in our opinion, did not

    determine the issue of legality of levy of penal charges three times the

    normal charges. As such, the Writ Petition could not have been held to

    be not maintainable on ground of res judicata.

    12. In view of the findings recorded hereinabove that mere issuance

    of G.O.Ms.No.86 dated 03.03.2006 by the Government, even if

    considered to be a policy decision, could not be enforced by the

    respondent-company without any corresponding amendment in the

    tariff regulations/tariff order by the Electricity Regulatory Commission.

    The appellant has obtained the OC on 07.11.2014. However, for a

    period of seven months prior to that, the levy of penal charges three
    ::11::

    times the normal tariff raised by the impugned demand could not be

    sustained in the eye of law.

    13. For the foregoing reasons, the impugned order dated 07.07.2026

    passed by the learned writ Court in W.P.No.3757 of 2026 is set aside

    and the impugned demand notice dated 20.08.2025 is quashed.

    14. Accordingly, the Writ Appeal is allowed. No costs.

    Miscellaneous applications pending, if any, shall stand closed.

    ____________________________
    APARESH KUMAR SINGH, CJ

    ___________________
    G.M.MOHIUDDIN, J
    Date: 16.07.2026
    MD



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