Appellate Tribunal For ElectricityCivil Procedure and EvidenceAdministrative and Public Law

Condonation of delay denied under Section 14 Limitation Act for lack of diligence in pursuing wrong forum.

Chemplast Sanmar Limited & Ors.v.Tamil Nadu Electricity Regulatory Commission & Ors.

Condonation of delay denied under Section 14 Limitation Act for lack of diligence in pursuing wrong forum.. Chemplast Sanmar Limited & Ors. vs Tamil Nadu Electricity Regulatory Commission & Ors.. Appellate Tribunal For Electricity. LawLens
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In brief

The question

1. Whether the Appellants are entitled to the exclusion of time under Section 14 of the Limitation Act, 1963, for the period spent litigating before the High Court.

The court held

The Tribunal dismissed the applications for condonation of delay, holding that the Appellants exhibited a "total lack of diligence" and did not act in good faith

It also directed

Consequently, all appeals (DFR Nos. 114, 121, 122, 123, 124, 139, and 112 of 2026) were dismissed as barred by limitation

01Facts

The Appellants are High Tension Open Access Captive Power Consumers who originally enjoyed "Deemed Demand Charges" (DDC) under a 2006 Tariff Order

¶ 3

Subsequent Tariff Orders in 2012 and 2013 introduced "Billing Demand," effectively discontinuing DDC

¶ 4, 16

In 2013, the Respondent (TNPDCL) issued a clarificatory circular confirming the withdrawal of DDC based on the 2013 Tariff Order

¶ 4

The Appellants challenged this circular via writ petitions in the Madras High Court instead of appealing the Tariff Orders

¶ 6

While the Single Bench quashed the circular in 2018, the Division Bench reversed this in 2025, holding that the 2013 Tariff Order had rationalized new charges and the writ petitions were not maintainable without challenging the underlying Tariff Orders

¶ 7, 9

The Supreme Court dismissed the Appellants' SLPs but granted liberty to challenge the Tariff Orders before the appropriate forum, keeping the question of "maintainability" open

¶ 10

Consequently, these appeals were filed with a delay of over 3,000 to 5,000 days

¶ 2

02Issues

i.1. Whether the Appellants are entitled to the exclusion of time under Section 14 of the Limitation Act, 1963, for the period spent litigating before the High Court.

¶ 13

ii.2. Whether the "liberty" granted by the Supreme Court to file appeals serves to automatically condone the massive delay in filing.

¶ 14, 31

03Law Applied

The Tribunal applied Section 14 of the Limitation Act, 1963, which allows for the exclusion of time spent in a former civil proceeding if conducted with "due diligence" and in "good faith" in a court that suffered from a "defect of jurisdiction"

¶ 19-20

It relied on Union of India v. West Coast Paper Mills Ltd. to define "other cause of like nature"

¶ 21

Consolidated Engg. Enterprises v. Principal Secretary, Irrigation Department for the five mandatory conditions to invoke Section 14

¶ 22

The principle that "maintainability" includes statutory bars like limitation, as seen in Deepak Manaklal Katariay v. Ashok Motilal Katariya

¶ 31

Arifa v. Abhiman Apartment Co-op Housing Society regarding the effect of "liberty to file" on limitation

¶ 32

Provisions in the judgment · 3 · Linked ones open on LawLens

Limitation Act, 1963 Section 14Section 2

Code of Civil Procedure, 1908 Section 11

04Reasoning

The Tribunal found that the Appellants failed to meet the criteria of "good faith" and "due diligence" required by Section 14

¶ 25, 34

The 2012 and 2013 Tariff Orders clearly indicated the discontinuation of DDC, yet the Appellants deliberately chose to challenge a mere clarificatory circular in the High Court rather than the substantive Tariff Orders in the Tribunal

¶ 24-25

Any lingering ambiguity was resolved by the 2017 Tariff Order, which explicitly stated DDC had been withdrawn; however, the Appellants continued their writ proceedings for several years thereafter

¶ 28-29

The Tribunal held that the "liberty" granted by the Supreme Court did not bypass the Limitation Act, especially since the Supreme Court specifically kept "maintainability" (which encompasses limitation) open for the Tribunal's determination

¶ 31-33

The delay of 3,000-5,000 days was deemed "enormous" and unexplained

¶ 34

05Holding

The Tribunal dismissed the applications for condonation of delay, holding that the Appellants exhibited a "total lack of diligence" and did not act in good faith

¶ 34

Consequently, all appeals (DFR Nos. 114, 121, 122, 123, 124, 139, and 112 of 2026) were dismissed as barred by limitation

¶ 35-36
Appellate Tribunal For Electricity

Original Court PDF

Chemplast Sanmar Limited & Ors.vsTamil Nadu Electricity Regulatory Commission & Ors.

Appellate Tribunal For Electricity · May 27, 2026

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