NATESAN PRECISION COMPONENTS PRIVATE LIMITED Vs. TAMIL NADU GENERATION AND DISTRIBUTION CORPORATION LIMITED

JUDGEMENT

(1.) The petitioner company is engaged in manufacturing of automobile Gears and Shafts. The petitioner company also generates wind energy through wind mills at Thirunelveli District and Theni District having combined capacity of 2 MW.

(2.) The petitioner has entered into power purchase agreements with the Tamil nadu Generation and Distribution Corporation Limited (hereinafter referred to as "the TANGEDCO") for supply of power generated by it through its windmills. For its industrial units at Maraimalainagar, Chengalpet District it consume electricity supplied by the TANGEDCO. Under the provisions of the Power Purchase Agreement, the invoice raised by the petitioner every month for the power sold by it to TANGEDCO, the respondents have to pay within 30 days of receipt of the bill. Any delayed payment beyond 30 days is liable for interest at the rate of 1% per month.

(3.) As of December 2018, the respondents have to pay a sum of Rs.56,69,298/- to the petitioner for the power sold to it. Since October 2017, the respondents neither paid the invoice amount in full nor the interest for delayed payment. Despite provision for payment security is in the agreement, the respondents have not provided any mechanism for its enforcement. The substantial delay in making payment for the energy sold has crippled the functioning of the petitioner company.