w w w . L a w y e r S e r v i c e s . i n

Tirunelveli Solar Project Pvt. Ltd., Rep. by Mr.P.Elavarasu, Asst. General Manager – Project, Rajasthan v/s Tamil Nadu Generation & Distribution Corporation Limited (TANGEDCO), Rep. by its Chairman, Chennai & Others

Company & Directors' Information:- B & G SOLAR PRIVATE LIMITED [Active] CIN = U93000TN2010PTC075502

Company & Directors' Information:- S K B PROJECT (INDIA) PRIVATE LIMITED [Active] CIN = U45202MP2008PTC020457

Company & Directors' Information:- SOLAR INDIA PRIVATE LIMITED [Under Liquidation] CIN = U99999DL1989PTC035222

Company & Directors' Information:- MR INDIA PRIVATE LIMITED [Active] CIN = U15122TG2011PTC076407

Company & Directors' Information:- A J PROJECT PRIVATE LIMITED [Active] CIN = U70101WB2006PTC110040

Company & Directors' Information:- M B S PROJECT PRIVATE LIMITED [Strike Off] CIN = U45209GJ2000PTC038147

Company & Directors' Information:- M F SOLAR PRIVATE LIMITED [Strike Off] CIN = U40106DL2010PTC203531

Company & Directors' Information:- K C PROJECT INDIA PRIVATE LIMITED [Active] CIN = U55101DL1997PTC088558

Company & Directors' Information:- A. H. PROJECT PRIVATE LIMITED [Active] CIN = U45400WB2010PTC141970

Company & Directors' Information:- M. M. SOLAR PRIVATE LIMITED [Active] CIN = U40106MH2008PTC180238

Company & Directors' Information:- I G SOLAR PRIVATE LIMITED [Active] CIN = U29253DL2009PTC196646

Company & Directors' Information:- H E F PROJECT PRIVATE LIMITED [Converted to LLP] CIN = U74899DL1995PTC069794

Company & Directors' Information:- B J S PROJECT PRIVATE LIMITED [Active] CIN = U74900WB2015PTC206605

Company & Directors' Information:- S. P. SOLAR PRIVATE LIMITED [Strike Off] CIN = U51900MH2008PTC179431

Company & Directors' Information:- PROJECT Q AND S PRIVATE LIMITED [Active] CIN = U74999HR2020PTC086437

Company & Directors' Information:- INDIA SOLAR LIMITED [Active] CIN = U40106CH2012PLC034113

Company & Directors' Information:- D S SOLAR INDIA PRIVATE LIMITED [Active] CIN = U40106DL2011PTC215990

Company & Directors' Information:- N S D SOLAR LIMITED [Strike Off] CIN = U74140HR2013PLC048859

Company & Directors' Information:- G. C. SOLAR (INDIA) PRIVATE LIMITED [Strike Off] CIN = U74990KA2009PTC051001

Company & Directors' Information:- M.R. AND COMPANY PRIVATE LIMITED [Strike Off] CIN = U74300DL1985PTC020952

Company & Directors' Information:- G M SOLAR INDIA PRIVATE LIMITED [Strike Off] CIN = U40106AP2013PTC089692

Company & Directors' Information:- K D PROJECT PRIVATE LIMITED [Strike Off] CIN = U45400MH2010PTC209307

Company & Directors' Information:- P T SOLAR PVT LTD [Strike Off] CIN = U40106TG2006PTC048892

Company & Directors' Information:- M S SOLAR PRIVATE LIMITED [Strike Off] CIN = U40108TG2010PTC067949

Company & Directors' Information:- C R V SOLAR PRIVATE LIMITED [Strike Off] CIN = U29307DL2013PTC256388

Company & Directors' Information:- M.R. CORPORATION PRIVATE LIMITED [Strike Off] CIN = U15400DL2013PTC259339

Company & Directors' Information:- G N G SOLAR PRIVATE LIMITED [Active] CIN = U40106DL2010PTC208181

Company & Directors' Information:- A. R. C. SOLAR PRIVATE LIMITED [Strike Off] CIN = U45400HR2008PTC037511

Company & Directors' Information:- E PROJECT PRIVATE LIMITED [Active] CIN = U72300HR2015PTC057142

Company & Directors' Information:- K. M. SOLAR PRIVATE LIMITED [Active] CIN = U40106GJ2019PTC111117

Company & Directors' Information:- N. D. SOLAR PRIVATE LIMITED [Active] CIN = U29309GJ2019PTC111088

Company & Directors' Information:- A AND G SOLAR PRIVATE LIMITED [Active] CIN = U40300GJ2020PTC116217

    W.P. No. 5874 of 2020 & WMP. No. 6887 of 2020

    Decided On, 06 March 2020

    At, High Court of Judicature at Madras


    For the Petitioner: P. Wilson, Senior Counsel, Richardson Wilson, Advocate. For the Respondents: Vijay Meghanathan, Advocate.

Judgment Text

(Prayer: Writ Petition filed under Article 226 of the Constitution of India praying for issuance of Writ of Mandamus, forbearing the respondents 1 and 2 in any way encashing the Bank Guarantee in BG.No.3188317BG0000544 dated 27.09.2017 executed by the petitioner in State Bank of India, Jaipur Branch pending hearing of the petition in S.R.No.23 of 2020 filed by the petitioner before the 3rd respondent.)

1. Heard Mr.P.Wilson, learned Senior Counsel assisted by Mr.Richardson Wilson, learned counsel for the petitioner and Mr.Vijay Meghanathan, learned counsel for the respondents.

2. With the consent of learned counsel on either side, the writ petition itself is taken up for final disposal.

3. The petitioner seeks for issuance of a writ of mandamus to forbear the respondents 1 and 2 from encashing the Bank Guarantee/Performance Guarantee furnished by the petitioner for completion of the works allotted in the letter of intent dated 29.08.2017 for establishment of 100 MW solar power plant and for sale of solar power to TANGEDCO.

4. The petitioner has moved this Court on the limited ground that in terms of the letter of intent, if the petitioner, which is a special purpose vehicle formed for the project, seeks extension of time to complete the project, then they have to approach the Tamil Nadu Electricity Regulatory Commission (TNERC) and the petitioner had filed an application before TNERC on 05.02.2020. However, the application is yet to be numbered and has been assigned S.R.No.23 of 2020 and the matter has been placed before the Secretary because the petitioner is yet to pay the 1% of the value of the security furnished for the prayer to prevent precipitative action. The learned Senior Counsel submitted that the petitioner is ready and willing to pay the court fee and reasonable time may be granted because the TNERC has to hear the petition.

5. The learned Standing Counsel for the respondents submitted that the Bank Guarantee has been invoked by the Chief Engineer on 24.02.2020 on the ground that the petitioner defaulted in compliance of the terms and conditions of the agreement. It is stated in the said communication that the petitioner has commenced their project only on 29.01.2020 and there is a delay of 123 days from the scheduled date of commissioning and as the company has commissioned the 100 MW solar project beyond the scheduled date of commissioning. As per the terms and conditions of Letter of Intent, the Performance Bank Guarantee shall be forfeited in proportionate to the delay period, which has been computed by the respondent at Rs.16,07,84,370/-.

6. It is not disputed by the respondent that though the Bank Guarantee has been invoked and the encashment is yet to take place. The law on the subject i.e., Power of the Court to injunct the encashment of Bank Guarantees, have been well settled and there is no pleading as fraud having been committed to prevent the respondent from encashing Bank Guarantee. Therefore, under normal circumstances, the prayer sought for in this writ petition should be rejected.

7. After considering the fact that the letter of intent provides for a remedy only before the TNERC, and not by way of arbitration, the present case can be treated as a distinct matter and the fact remains that the petitioner has also moved the TNERC on 05.02.2020 and the matter is in the S.R. Stage.

8. In the light of the above, this Court is inclined to issue the following direction treating the facts of the case as peculiar.

9. In the result, the writ petition is disposed of by directing the petitioner to remit the 1% value as court fee as directed by the TNERC by order dated 27.02.2020 and if the same is done and the petition is in otherwise in order, the TNERC may consider the petition at the earliest. The writ petitioner is at liberty to mention before the Commission for earlier listing of the matter. It is pointed out by learned counse

Please Login To View The Full Judgment!

l on either side that TNERC will give a hearing within two weeks. Therefore, the respondent TANGEDCO shall not insist upon encashment of the Bank Guarantee till 23.03.2020. 10. If the petitioner seeks for any further protection from precipitative action, it is open to the petitioner to move the TNERC. With the above observation, the writ petition stands disposed of. No costs. Connected miscellaneous petition is closed.