The Tamil Nadu Power Distribution Corporation Ltd v. Shambhuvengu Yarn Mills Ltd

JUDGMENT (Delivered by the Hon'ble Chief Justice) The issue raised in this appeal already stands covered by the decision of the Division Bench of this Court in W.A.No.4189 of 2019 and other connected cases (between Tamil Nadu Generation and Distribution Corporation Limited and Ors. vs. Atlas Processing Mills and Ors.), vide order dated 18.02.2020. The said order was challenged before the Apex Court in SLP Nos.8513-8518 of 2020 and the said SLPs were also dismissed vide order dated 24.09.2020.

¶2However, learned counsel for the appellants submitted that the learned Single Judge had failed to appreciate Clause (5) of the Agreement, which specifically stipulates the time for payment and also provides the contractual consequence for delayed payment, namely payment of interest at 1% per month. He submits that once the contract itself contemplates delayed payment and provides a specific financial consequence therefor, every delay cannot automatically be elevated into a violation attracting exit under clause 7(b).

¶3According to the learned counsel for the respondent/writ petitioner, this issue has already been considered by the learned Single Judge and is squarely covered by the decision of the Division Bench. In view of the fact that the issue raised in this writ appeal is already covered in W.A.No.4189 of 2019, referred to above, this writ appeal stands dismissed. There shall be no order as to costs. Consequently, the interim application stands closed. (SUSHRUT ARVIND DHARMADHIKARI, CJ) (G.ARUL MURUGAN,J)

14.07.2026 Index : : bbr To:

1.The Managing Director Tamil Nadu Power Distribution 144, Anna Salai, Chennai-600 002

¶2The Managing Director Tamil Nadu Green Energy Corporation Ltd (TNPDCL) previously known as TANGEDCO, 144, Anna Salai, Chennai-600 002

¶3The Chief Engineer/NCES, (TNPDCL) 2nd Floor, 144, Anna Salai, Chennaj-600 002

¶4The Superintending Engineer previously Known as TANGEDCO, Udumalpet Electricity Distribution Circle, Udumalpet

¶5The Superintending Engineer Mettur Electricity Distribution Circle, Mettur Dam. W.A.No.2082,of,2026 THE,HON'BLE,CHIEF,JUSTICE ,,,,AND ,G.ARUL,MURUGAN,,J., bbr W.A.No.2082,of,2026 ,,,,,

14.07.2026 Page,6,of,6

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 14.07.2026 CORAM : THE HONOURABLE MR. SUSHRUT ARVIND DHARMADHIKARI, CHIEF JUSTICE AND THE HONOURABLE MR.JUSTICE G.ARUL MURUGAN and C.M.P.No.18073 of 2026 1.The Tamil Nadu Power Distribution 144, Anna Salai, Chennai-600 002 Rep. by its Managing Director. 2. Tamil Nadu Green Energy Corporation Ltd (TNPDCL) previously known as TANGEDCO, 144, Anna Salai, Chennai-600 002 Rep. by its Managing Director. 3. The Chief Engineer/NCES, (TNPDCL) 2nd Floor, 144, Anna Salai, Chennaj-600 002. 4. The Superintending Engineer previously Known as TANGEDCO, Udumalpet Electricity Distribution Circle, Udumalpet. 5. The Superintending Engineer Mettur Electricity Distribution Circle, Mettur Dam. Appellants Vs M/s.Shambhuvengu Yarn Mills Ltd WEG No.039214340843, No.4/997/3 to 6, Anangur Road, Mettukadai, Kallankattuvalasu(PO), Kumarapalayam-638183 Repd. by its Authorised Signatory K.Rajalingam Respondent PRAYER : Appeal filed under Clause 15 of the Letters Patent to set aside the order passed by the learned Single Judge in W.P.No.13729 of 2025, dated 22.04.2025. For Appellants: Mr.D.R.Arun Kumar For Respondent: Mr.M.Saravana Kumar