Madras High Court
Administrative and Public LawCivil Law

Outstanding electricity-generation dues must be adjusted against consumption charges before supply can be disconnected.

R.G.Spinning Mills Pvt Limited vs Tamilnadu Electricity Regulatory Commission,

Madras High CourtJUDGMENT: September 30, 20262 MIN READSOURCE JUDGMENT
Outstanding electricity-generation dues must be adjusted against consumption charges before supply can be disconnected.. R.G.Spinning Mills Pvt Limited vs Tamilnadu Electricity Regulatory Commission,. Madras High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner, an electricity consumer holding HTSC No. 049094370466, sought to prevent the respondents from collecting current consumption charges, demand charges, or arrears until they paid or adjusted ₹4,75,330 allegedly due to it for 2025–2026.

Source reference: p. 2

At admission, both sides submitted that the issue had been addressed in earlier cases, including W.P. No. 38309 of 2024, which followed directions previously issued in similar matters.

Source reference: p. 2, p. 5
02

Issues

Whether the respondents should adjust the amount due to the petitioner against its current consumption and demand charges.

Source reference: p. 2, p. 5

Whether the respondents should be restrained from taking coercive steps to disconnect the petitioner’s electricity supply until the amount due is fully adjusted.

Source reference: p. 4, p. 5
03

Law Applied

The Court relied on the directions in M/s. Rajaguru Spinning Mills P. Ltd. v. Tamil Nadu Electricity Regulatory Commission, W.P. Nos. 6776 of 2020 etc., dated 28 October 2021, as followed in subsequent similar cases.

Source reference: p. 4, p. 5

Those directions provide that outstanding amounts payable by the electricity distribution entity may be adjusted against the consumer’s current consumption or open-access charges, with adjustment continuing until the amount is exhausted; coercive disconnection steps are not to be taken while the outstanding amount remains to be adjusted.

Source reference: p. 4, p. 5

The present order applies that approach under the Court’s writ jurisdiction under Article 226.

Source reference: p. 2
04

Reasoning

The Court noted the parties’ submission that the matter was covered by earlier orders and relied on the terms adopted in W.P. No. 38309 of 2024, which in turn followed the directions in the Rajaguru Spinning Mills batch.

Source reference: p. 2, p. 5

Finding the present case suitable for the same treatment, the Court disposed of the petition on those terms, without separately examining the underlying claim in detail.

Source reference: p. 5
05

Holding

The writ petition was disposed of on the same terms as the earlier order.

Accordingly, the respondents were directed to adjust the ₹4,75,330 payable to the petitioner against its current consumption and demand charges until the amount is fully adjusted or exhausted, and not to take coercive steps to disconnect its electricity supply before then.

Source reference: p. 2, p. 5

The connected miscellaneous petition was closed, with no order as to costs.

Source reference: p. 5
Madras High Court

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R.G.Spinning Mills Pvt LimitedvsTamilnadu Electricity Regulatory Commission,

Madras High Court · September 30, 2026

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