Madras High Court
Administrative and Public LawCommercial and Corporate Law

Outstanding renewable-energy dues must be adjusted against current charges before coercive disconnection.

M/S.Color Wind Energy LLP vs Tamilnadu Electricity Regulatory Commission,

Madras High CourtJUDGMENT: September 30, 20262 MIN READSOURCE JUDGMENT
Outstanding renewable-energy dues must be adjusted against current charges before coercive disconnection.. M/S.Color Wind Energy LLP vs Tamilnadu Electricity Regulatory Commission,. Madras High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner sought to restrain the respondents from collecting current-consumption charges, demand charges, or arrears from its group-captive consumer, M/s. Manchester Textile Pvt. Ltd. (HTSC No. 039094380746), until the respondents paid or adjusted an outstanding sum of ₹74,935 for 2025–2026.

Source reference: p. 2

At the hearing, counsel for both sides agreed that the matter was covered by the order in W.P. No. 38309 of 2024 and could be disposed of on the same terms.

Source reference: p. 3
02

Issues

Whether the petitioner was entitled to adjustment of the outstanding ₹74,935 against current-consumption and demand charges, on the terms of the prior orders concerning similar disputes.

Source reference: pp. 2–3

Whether the respondents could take coercive steps to disconnect electricity supply before the outstanding amount was fully adjusted.

Source reference: pp. 5–6
03

Law Applied

The Court exercised its jurisdiction under Article 226 and followed its prior orders in M/s. Rajaguru Spinning Mills P. Ltd. v. Tamil Nadu Electricity Regulatory Commission (W.P. Nos. 6776 of 2020 etc., order dated 28 October 2021) and W.P. No. 38309 of 2024.

Source reference: pp. 4–6

Those orders provided that outstanding amounts payable for electricity supplied should be adjusted against current-consumption or open-access charges until fully exhausted, and that electricity supply should not be disconnected by coercive action while the adjustment remained incomplete.

Source reference: pp. 4–6
04

Reasoning

The Court noted that the parties agreed the dispute was covered by the earlier order in W.P. No. 38309 of 2024 and that the present petition could be disposed of on the same terms.

Source reference: p. 3

Applying the approach in the cited precedents, the Court adopted the adjustment and non-disconnection directions for the petitioner’s claim.

Source reference: pp. 4–6
05

Holding

The writ petition was disposed of on the same terms as the order in W.P. No. 38309 of 2024.

Under those terms, the respondents were to adjust the outstanding amount against the relevant charges until fully exhausted and were not to take coercive steps to disconnect supply pending adjustment.

Source reference: p. 5

No costs were ordered, and the connected miscellaneous petition was closed.

Source reference: p. 6
Madras High Court

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M/S.Color Wind Energy LLPvsTamilnadu Electricity Regulatory Commission,

Madras High Court · September 30, 2026

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