Madras High Court
Administrative and Public LawCommercial and Corporate Law

Unpaid power-supply dues must be adjusted against consumption charges before disconnection can be pursued.

M/s. Sahana Green Energy Pvt. Ltd., vs TAMIL NADU ELECTRICITY REGULATORY COMMISSION

Madras High CourtJUDGMENT: September 24, 20262 MIN READSOURCE JUDGMENT
Unpaid power-supply dues must be adjusted against consumption charges before disconnection can be pursued.. M/s. Sahana Green Energy Pvt. Ltd., vs TAMIL NADU ELECTRICITY REGULATORY COMMISSION. Madras High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner sought a writ of mandamus to prevent the respondents from collecting current-consumption charges, demand charges, or arrears from its group-captive consumer, M/s. Sahana Textiles, until the respondents paid or adjusted ₹11,06,672 allegedly due to the petitioner for 2025–2026.

Source reference: p. 2

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

Source reference: p. 2
02

Issues

Whether the amount due to the petitioner could be adjusted against current-consumption and demand charges payable by its group-captive consumer.

Source reference: p. 2, p. 5

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

Source reference: p. 4, p. 5
03

Law Applied

Exercising its jurisdiction under Article 226, the Court applied the directions 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, as followed in W.P. No. 31140 of 2024 and connected cases.

Source reference: p. 4, p. 5

Those directions provide that outstanding amounts due to a generator may be adjusted against current-consumption or open-access charges until fully exhausted, and that electricity supply should not be disconnected while the adjustment remains incomplete.

Source reference: p. 4, p. 5
04

Reasoning

The parties agreed that the dispute was governed by the earlier order in W.P. No. 38309 of 2024, which applied the Rajaguru Spinning Mills directions to adjustment of outstanding amounts and protection against disconnection pending adjustment.

Source reference: p. 2, p. 5

On that basis, the Court disposed of the present petition on the same terms, without separately analysing the underlying amount or the parties’ substantive claims.

Source reference: p. 6
05

Holding

The Court disposed of the writ petition on the same terms as the earlier order, directing adjustment of the amount due against the relevant current-consumption and demand charges and restraining coercive disconnection until the outstanding amount was fully adjusted.

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

Source reference: p. 6
Madras High Court

Original Court PDF

M/s. Sahana Green Energy Pvt. Ltd.,vsTAMIL NADU ELECTRICITY REGULATORY COMMISSION

Madras High Court · September 24, 2026

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