ARTICLE
23 March 2026

TNERC Held That Verification Of CGP Is Not A Matter In Personam But A Matter In Rem

The Tamil Nadu Electricity Regulatory Commission (“TNERC”), through its order dated 06.03.2026 in the matter of Tamil Nadu Generation and Distribution Corporation Limited v.
India Tamil Nadu Energy and Natural Resources
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The Tamil Nadu Electricity Regulatory Commission (“TNERC”), through its order dated 06.03.2026 in the matter of Tamil Nadu Generation and Distribution Corporation Limited v. the Chettinad Cement Corporation Private Limited1 held that the power of licensee to verify the CGP status on its own is not a matter in personam but a matter in rem.

The Tamil Nadu Electricity Regulatory Commission (“TNERC”), through its order dated 06.03.2026 in the matter of Tamil Nadu Generation and Distribution Corporation Limited v. the Chettinad Cement Corporation Private Limited19 held that the power of licensee to verify the CGP status on its own is not a matter in personam but a matter in rem.

The dispute arose after Tamil Nadu Generation and Distribution Corporation Limited (“TANGEDCO”) sought recovery of CSS on the ground that the Chettinad Cement Corporation Private Limited (“CCCPL”) generating plant had lost its captive status during FY 2014-15 and 2015-16. CCCPL contended that the claim was time-barred since the petition had been filed in October 2020, more than three years after the relevant financial years.

TNERC held that claim of TNPDCL is not barred by limitation as the procedure for determining the captive status was challenged before the Madras High Court and, TNPDCL cannot be expected to issue notices to CGPs requiring them to furnish details of consumption or shareholding when the very power to undertake such exercise was under challenge before Madras High Court.

Footnote

1. R.A. No. 4 of 2024 arising out of M.P. No. 36 of 2020.

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