CHENNAI: At a time when the public sector power utility has been grappling with the summer demand and public protests over frequent undeclared power cuts across the state, the Madras High Court has saved the Tamil Nadu Green Energy Corporation (TNGECL) from being denied power to be drawn from the grid over a payment dispute with Kamuthi Renewable Energy Limited (KREL), an Adani Group entity producing solar power.
The first bench of Chief Justice Sushrut Arvind Dharmadhikari and Justice G Arul Murugan granted the relief to TNGECL by ordering no coercive action shall be taken against it till June 30, considering the predicament of the public sector power utility.
The matter pertains to the charges and dues TNGECL owed to KREL for supplying solar energy. It calculated the dues under compound interest but TNGECL approached the Tamil Nadu Electricity Regulatory Commission (TNERC) which issued an order, on February 17, 2026, stating simple interest be calculated.
As a consequence, KREL made the calculation and uploaded the bill for Rs 38.08 crore on the Payment Ratification and Analysis in Power Procurement for bringing Transparency in Invoicing of Generators (PRAAPTI) Portal of the Union Government on February 21.
The consequent initiation of action under the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, would result in snapping connectivity to the grid leaving TNGECL scurrying for power.
Challenging the TNERC order and invoice, TNGECL filed a writ petition which was dismissed on February 29 by a single judge who also vacated an interim injunction granted earlier by the court stating that the petition was not maintainable since the remedy lies before the Appellate Tribunal for Electricity (APTEL).
Advocate General (AG) Vijay Narayan, submitted that the single judge had failed to give a fair opportunity of hearing and noted that TNGECL had filed an appeal before APTEL, but it could not be heard due to the vacation.
Explaining the consequences of the coercive action, he said, "Once the bill is uploaded, we will come as a regulated entity where we cannot purchase from the grid. If the grid connectivity gets suspended, vast areas of the state will go without electricity. Senior counsel
PS Raman, appearing for KREL, submitted that the remedy for TNGECL is not before the court but before APTEL, and so, the writ petition was rightly dismissed. Recalling that TNERC passed the order on February 12, he said TNGECL had ample time but for reasons best known to it, the appeal was not filed but a writ petition was preferred.
The bench, in its order, said that it permits TNGECL to pursue the appeal before APTEL considering the predicament as submitted by the AG and the subsistence of an interim injunction until the writ petition was dismissed.
"However, we make it clear that no coercive proceedings pursuant to the TNERC order shall be taken till June 30," it ordered.
