SEKAR REPORTER

Court News from Madras High Court

The Brief History of the dispute between M/s. Tuticorin Port Trust and TWAD Board in water tariff fixation andTuticorin Port Trust has also filed O.P.No. 765/2013 before the Hon’ble High Court, Madras to set aside the Section (C) of the Arbitration Award.

by ·


[1/29, 11:52] Thamilarasi Wla Advt: The Brief History of the dispute between M/s. Tuticorin Port Trust and TWAD Board in water tariff fixation and
status report on water charge due from TPT
M/s. Tuticorin Port Trust had entered into an agreement with TWAD Board for the purpose of effecting water supply to the staff quarters in Port Trust Area during 1991. As per agreement a rate of Rs.0.58 paise per kilo lit was fixed. As per agreement the rate fixed was subject to review and revision, which would be communicated to consumer by the TWAD Board in advance.
• In Board proceeding dated.20.01.1997, the tariff was fixed as Rs.3.50 per kilo lit for domestic use, Rs.7.0 per Kilo lit for commercial use and Rs. ​17.50 for Industrial use. Hence demand for Rs.17.50 per kilo lit was raised for TPT considering as Industrial purpose. In G.O.Ms.No.83, Rural Development Department dated.04.05.1998, water tariff for Industrial purpose was revised as Rs.10.50/KL and accordingly demand was raised for Rs.10.50/KL.
[1/29, 11:52] Thamilarasi Wla Advt: The dispute was raised in the year 1997. Tuticorin Port is now paying water charges Rs.3.50 /1000 lit from the year 1997. Moreover, TPT is now paying Rs.3.50 per KL against the demand raised by TWAD for Rs.80/KL as per the current Tariff rate for Government Organisation.
​The Executive Engineer, TWAD Board, Maintenance Division, Tuticorin has stated that as per Award of the Arbitrator itself the due from Tuticorin Port Trust upto 31.12.2019 has been worked out to Rs. 18,32,68,776/- ( Rs.18.327 crore). without interest. The interest amount works out to Rs. 26,44,42,048/- (26.444 crore). Total due – RS.44,77,10,824 (Rs. 44.77 Crore).
Now the Tuticorin port trust filed OSA 30/2020 and moved CMP no 1252/2020 for stay of the O P order. In the same an interim order of stay has been granted on condition that the Tuticorin Port Trust shall pay Tamilnadu Water supply and Sewerage Board an amount of 10 crores with in a period of four weeks from the date of the receipt of the order.
[1/29, 11:52] Thamilarasi Wla Advt: • The Sole Arbitrator Thiru Jonathan Gnanaiah (Rtd. Judge) passed Award on 27.4.2013 as follows:
a) The Tuticorin Port Trust shall pay to the TWAD Board water charges at the rate of Rs.3.50 per kilo liter for 90% of water received through the 3 MGD Scheme from February 1997 till 30.11.2002.
b) The Tuticorin Port Trust shall pay to the TWAD Board water charges at the rate of Rs.10.50 per kilo liter for 10% of water received through the 3 MGD Scheme from February 1997 till 30.11.2002.
c) The Tuticorin Port Trust shall pay to the TWAD Board water charges at the rates applicable to “other beneficiaries” for the water received through the 3 MGD Scheme from 1.12.2002 and as revised from time to time by the TWAD Board and the Government of Tamil Nadu.
d) The TWAD Board shall not be entitled to demand any amount as penalty from the Tuticorin Port Trust for the delay in paying the above said charges.
• TWAD Board has filed O.P.No. 865/2013 before the Hon’ble High Court, Madras to set aside the section a,b and d of the Arbitration Award.
• M/s. Tuticorin Port Trust has also filed O.P.No. 765/2013 before the Hon’ble High Court, Madras to set aside the Section (C) of the Arbitration Award.
• The above cases are disposed off by common order dated. 11.01.2019. The Hon’ble Court has ordered that “ these Original Petitions are dismissed as devoid of merits.”

You may also like...