Madras High Court
Administrative and Public LawContract Law

Electricity distributors must align wheeling agreements with the tariff order despite a pending appeal.

M/S.MAJESTIC EXPORTS vs TAMIL NADU ELECTRICITY REGULATORY COMMISSION

Madras High CourtJUDGMENT: September 30, 20262 MIN READSOURCE JUDGMENT
Electricity distributors must align wheeling agreements with the tariff order despite a pending appeal.. M/S.MAJESTIC EXPORTS vs TAMIL NADU ELECTRICITY REGULATORY COMMISSION. Madras High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner sought revision of its Energy Wheeling Agreement dated 28 August 2023 to conform with paragraph 5.5.8 of the Tamil Nadu Electricity Regulatory Commission’s Solar Tariff Order No. 9 of 2020.

Source reference: p. 2

It also sought payment for unutilised surplus solar energy at 75% of the competitively discovered tariff, stated to be Rs. 3.04 per unit

Source reference: p. 2

The parties accepted that the issue was covered by earlier decisions of the Court in W.P. Nos. 31457 of 2025 and 49777 of 2025, which had directed revision of similar agreements.

Source reference: pp. 3, 6

The respondents stated that an appeal against the Commission’s order was pending before APTEL.

Source reference: pp. 6–7
02

Issues

Whether respondents 2 to 4 should revise the petitioner’s Energy Wheeling Agreement to incorporate paragraph 5.5.8 of Solar Tariff Order No. 9 of 2020

Source reference: pp. 2, 6

Whether payment due for surplus solar energy should be made following that revision, notwithstanding the pending APTEL appeal

Source reference: pp. 2, 6–7
03

Law Applied

Article 226 of the Constitution empowers the High Court to issue a writ of mandamus.

Source reference: no citation

Paragraph 5.5.8 of Solar Tariff Order No. 9 of 2020, as addressed in the Commission’s order in M.P. No. 47 of 2021, entitles a generator to payment for energy supplied over the sanctioned limit at 75% of the Commission-fixed tariff or, where no tariff has been fixed, 75% of the tariff discovered through competitive bidding; denial may arise in specified grid-security or direction-related circumstances, subject to notice and a fair hearing

Source reference: pp. 4–5

The Court followed its earlier decisions directing revision of similar agreements to reflect that tariff-order provision

Source reference: pp. 3, 6
04

Reasoning

The Court treated the issue as covered by its earlier decisions, which had required respondents to revise inconsistent agreement clauses in line with paragraph 5.5.8 of the tariff order.

Source reference: pp. 3, 6

Although the respondents submitted that an appeal was pending before APTEL, the Court held that compliance with its directions need not await the appeal’s outcome; it preserved the authorities’ ability to proceed in accordance with law after APTEL decides the matter

Source reference: pp. 3, 6–7
05

Holding

The Court disposed of the petition and directed respondents 2 to 4 to revise the relevant agreement clause to incorporate paragraph 5.5.8 within six weeks from the date the web copy was uploaded.

Any amount payable to the petitioner is to be settled within eight weeks after the modification.

Source reference: pp. 6–7

Compliance is not to be deferred pending the APTEL appeal, but the authorities may proceed in accordance with law once that appeal is decided.

Source reference: pp. 6–7

No costs were ordered

Source reference: pp. 6–7
Madras High Court

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M/S.MAJESTIC EXPORTSvsTAMIL NADU ELECTRICITY REGULATORY COMMISSION

Madras High Court · September 30, 2026

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