Madras High Court
Administrative and Public LawConstitutional Law

Outstanding electricity-generation dues must be adjusted against consumer charges, with disconnection barred pending adjustment.

M/S.BEST COTTON MILLS PVT LTD., vs Tamilnadu Electricity Regulatory Commission,

Madras High CourtJUDGMENT: October 06, 20262 MIN READSOURCE JUDGMENT
Outstanding electricity-generation dues must be adjusted against consumer charges, with disconnection barred pending adjustment.. M/S.BEST COTTON MILLS PVT LTD., vs Tamilnadu Electricity Regulatory Commission,. Madras High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioners sought to prevent the respondents from collecting current-consumption charges, demand charges, or arrears until outstanding amounts allegedly payable to them were paid or adjusted against their electricity charges. The claims were Rs.14,31,470, Rs.13,22,380, and Rs.1,08,330, respectively.

Source reference: pp.4–5

At the hearing, counsel for both sides agreed that the petitions were covered by the Court’s earlier order in W.P. No.38309 of 2024 and could be disposed of on the same terms. A subsequent order corrected the W.M.P. number in the original order from 41387 to 41837.

Source reference: p.5, para. 2; p.12, paras. 1–3
02

Issues

Whether the petitioners were entitled to adjustment of the outstanding amounts payable to them against their current-consumption and demand charges, on the terms of the earlier orders.

Source reference: pp.5–8, paras. 2–3

Whether the respondents could take coercive steps to disconnect the petitioners’ electricity supply before those amounts were fully adjusted.

Source reference: pp.7–8, para. 2
03

Law Applied

Under Article 226 of the Constitution, the Court may grant mandamus relief in an appropriate case.

Source reference: no citation

The Court relied on its earlier order in W.P. No.38309 of 2024, which adopted the directions in M/s. Rajaguru Spinning Mills P. Ltd. v. Tamil Nadu Electricity Regulatory Commission, W.P. Nos.6776 of 2020 batch, dated 28 October 2021: outstanding amounts due to the petitioners are to be adjusted against current-consumption or open-access charges until exhausted, and the electricity connection is not to be disconnected while the adjustment remains incomplete.

Source reference: pp.6–8, para. 2
04

Reasoning

The Court did not independently examine the underlying calculations or the parties’ substantive entitlement to the claimed sums. Instead, it recorded that both sides accepted that the petitions were governed by the earlier decision and could be disposed of on the same terms.

Source reference: p.5, para. 2

Applying that precedent, the Court disposed of the petitions on those terms.

Source reference: p.8, para. 3
05

Holding

The petitions were disposed of on the same terms as the earlier order, providing for adjustment of amounts payable to the petitioners against their electricity charges and protection against coercive disconnection pending full adjustment.

No costs were awarded, and the connected miscellaneous petitions were closed. The W.M.P. number in the order was later corrected to 41837.

Source reference: p.8, para. 3; p.12, paras. 2–3
Madras High Court

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M/S.BEST COTTON MILLS PVT LTD.,vsTamilnadu Electricity Regulatory Commission,

Madras High Court · October 06, 2026

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