Madras High Court
Administrative and Public LawCivil Law

Utility must adjust outstanding electricity dues against current charges and refrain from disconnection meanwhile.

SRI SANTHANALAKSHMI SPINNERS (P ) Ltd vs TAMIL NADU ELECTRICITY REGULATORY COMMISSION

Madras High CourtJUDGMENT: September 17, 20263 MIN READSOURCE JUDGMENT
Utility must adjust outstanding electricity dues against current charges and refrain from disconnection meanwhile.. SRI SANTHANALAKSHMI SPINNERS (P ) Ltd vs TAMIL NADU ELECTRICITY REGULATORY COMMISSION. Madras High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioners were electricity consumers and/or group captive consumers associated with wind-energy generation.

Source reference: p.4

They claimed that electricity had been supplied to the respondents, particularly the Tamil Nadu Power Distribution Corporation Ltd. (“TNPDCL”), but corresponding amounts remained unpaid.

Source reference: pp.4–5

The amounts claimed were ₹29,31,459 for 2025–2026 in W.P. No. 37511 of 2026, ₹1,07,69,652 for 2019–2020, 2020–2021, 2022–2023 and 2023–2024 in W.P. No. 37518 of 2026, and ₹2,44,860 for 2025–2026 in W.P. No. 37535 of 2026.

Source reference: pp.4–5

The petitioners sought a writ of mandamus restraining the respondents from collecting current-consumption charges, demand charges and arrears until the outstanding amounts were paid or adjusted against future electricity charges.

Source reference: pp.4–5

When the petitions were heard, both sides agreed that the matters were covered by the Court’s earlier order in W.P. No. 38309 of 2024 and could be disposed of on the same terms.

Source reference: p.6
02

Issues

Whether the petitioners were entitled to adjustment of the amounts allegedly payable by TNPDCL towards electricity supplied against their current-consumption and demand charges.

Source reference: pp.5–9

Whether TNPDCL could be restrained from taking coercive steps, including disconnection of electricity supply, until the amounts due to the petitioners were fully adjusted.

Source reference: pp.7–9
03

Law Applied

The Court exercised its jurisdiction under Article 226 of the Constitution of India to issue an appropriate writ of mandamus where the petitioners’ claim for amounts payable by the electricity distribution corporation was undisputed or covered by an earlier judicial order.

Source reference: p.4

The Court relied on its earlier decision in W.P. No. 38309 of 2024, which followed the principles laid down 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.

Source reference: pp.6–8

That precedent directed that outstanding amounts payable by TANGEDCO/TNPDCL be adjusted against current-consumption or open-access charges and restrained coercive disconnection until such adjustment was completed.

Source reference: pp.6–8

Where the amount payable was being adjusted, the adjustment was to continue until the entire outstanding amount was exhausted.

Source reference: p.7
04

Reasoning

The Court noted that the present petitions involved the same legal and factual pattern as the earlier matters: the petitioners claimed amounts for electricity supplied to TNPDCL, while TNPDCL continued to demand current-consumption and other electricity charges.

Source reference: p.6

Since counsel for both sides accepted that the petitions were covered by the earlier order in W.P. No. 38309 of 2024, the Court applied the previously established arrangement rather than independently adjudicating the underlying accounts.

Source reference: p.6

Accordingly, the amounts claimed in each petition were to be adjusted against the respective petitioners’ current-consumption and demand charges.

Source reference: pp.7–9

Consistently with the earlier precedent, TNPDCL was not permitted to take coercive steps for disconnection while the outstanding amounts remained available for adjustment.

Source reference: pp.7–9
05

Holding

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

The respondents were directed to adjust the respective amounts payable to the petitioners against their current-consumption and demand charges until the amounts were fully adjusted or exhausted.

Source reference: pp.7–9

The respondents were also restrained from taking coercive steps, including disconnection of electricity supply, until completion of the adjustment.

Source reference: pp.7–9

No order as to costs was made, and the connected writ miscellaneous petitions were closed.

Source reference: p.9
Madras High Court

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SRI SANTHANALAKSHMI SPINNERS (P ) LtdvsTAMIL NADU ELECTRICITY REGULATORY COMMISSION

Madras High Court · September 17, 2026

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