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The Tamil Nadu Generation And vs Ptc India Ltd
2021 Latest Caselaw 20957 Mad

Citation : 2021 Latest Caselaw 20957 Mad
Judgement Date : 20 October, 2021

Madras High Court
The Tamil Nadu Generation And vs Ptc India Ltd on 20 October, 2021
                                                                 1

                                      IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                       DATED: 20.10.2021

                                                               Coram

                                         The Hon'ble Mr. Justice PARESH UPADHYAY
                                                             and
                                   The Hon'ble Mr. Justice SATHI KUMAR SUKUMARA KURUP

                                                       W.A.No.154 of 2021


                     The Tamil Nadu Generation and
                           Distribution Corp. Ltd.,
                     rep. by its Chairman,
                     144, Anna Salai, Chennai - 2.                                       ..Appellant

                                                                Vs

                     1.PTC India Ltd.,
                       2nd Floor, NBCC Tower,
                       Bhikaji Cama Place,
                       New Delhi - 110 066.

                     2.Arkay Energy (Rameswaram) Ltd.,
                       New No.20/Old No.129,
                       Chambers Road, Chennai - 25.                                  ..Respondents


                               Appeal preferred under Clause XV of Letters Patent against the
                     order dated 23.07.2018 in W.P.No.11228 of 2017.


                                       For Appellant      ..     Mr.J.Ravindran,
                                                                 Addl. Advocate General
                                                                 assisted by Mr.Jai Venkatesh

                                       For Respondents ..        Mr.Ravi Kishore for R1
                                                                 Mr.Advaidh Nelakantan for R2




https://www.mhc.tn.gov.in/judis/
                                                           2


                                                      JUDGMENT

(Delivered by PARESH UPADHYAY, J.)

Challenge in this appeal is made to the order passed by learned

Single Judge dated 23 July, 2018 in W.P.No.11228 of 2017 whereby

the petition was partly allowed. Being aggrieved, the first respondent

is in appeal.

2. Learned advocate for the appellant has submitted that the

learned Single Judge erred in arriving at the conclusion that production

of bank guarantee would be sufficient to balance the equities between

the parties. It is submitted that even the partial relief which is granted

by learned Single Judge ought not to have been in the facts of the

case. It is submitted that this appeal be entertained.

3. On the other hand, learned advocate for the first respondent

has submitted that an innocuous order is passed by learned Single

Judge, where the interest of all the parties are duly protected and no

interference be made by this Court. It is submitted that this appeal be

dismissed.

https://www.mhc.tn.gov.in/judis/

4. Having heard learned advocates for the respective parties and

having considered the material on record, this Court finds that, the

case of the original petitioner is examined in detail by learned Single

Judge and since the issue pertained to power purchase agreement

between the parties, considering the totality, the equities are balanced

between the parties by ordering the original petitioner to give a bank

guarantee for a sum of Rs.8,00,00,000/- (Rupees Eight Crores only)

and on receipt of the same, it is open to the first respondent to accept

and to proceed before the Tamil Nadu Electricity Regulatory

Commission for encashing the same in the event necessity arises.

Paragraph 7 of the order of learned Single Judge is relevant, which

reads as under:-

"7.Considering the facts and circumstances of the case, this Court is of the view that without even determining the liquidated damages, it is not open to the 1st respondent to proceed against the petitioner company to deduct from the running account bills raised by the petitioner in connection with other contract. It is represented by the learned counsel for the petitioner that since the petitioner is a Public Limited Company and also having Inter State Trading Licence under Section 14 of the Electricity Act, 2003, they are prepared to offer bank guarantee to the extent of Rs.8

https://www.mhc.tn.gov.in/judis/

crores in lieu of the set off made against the petitioner company by the 1st respondent."

5. Considering the totality, this Court finds that, the relief

granted by learned Single Judge, in the facts noted above, cannot be

said to be any error apparent on the face of record, which may call for

any interference by this Court in an intra-court appeal. In totality, no

interference is required.

6. The writ appeal is dismissed. No costs. C.M.P.No.739 of 2021

is closed.

                                                                         (P.U., J.)    (S.S.K., J.)
                                                                                 20.10.2021
                     Index:Yes/No
                     ssm




https://www.mhc.tn.gov.in/judis/



                                              PARESH UPADHYAY, J.
                                                            and
                                   SATHI KUMAR SUKUMARA KURUP, J.


                                                              ssm




                                                W.A.No.154 of 2021




                                                       20.10.2021




https://www.mhc.tn.gov.in/judis/

 
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