High Court Upholds Appellant's Claim for Free Fly Ash Supply in Thermal Power Plant Case — Obligation Survives Beyond Ten Years.

High Court: Madras High Court Bench: Principal In Favour of Accused
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Case Note & Summary

The judgment arose from two writ appeals concerning the obligation of Thermal Power Plants (TPPs) to supply fly ash free of cost and transportation to National Highway contractors. The appellants, DP Jain Bangalore-Chennai Expressways Private Limited and DPJ Pollachi HAM Project Private Limited, challenged the dismissal of their writ petitions by a Single Judge, which found that the obligation to supply free fly ash was limited to a ten-year period from a 1999 Notification. The court examined various notifications and amendments, concluding that the obligation to supply free fly ash continued for projects with bid due dates between 25.01.2016 and 31.12.2021, despite the 1999 Notification's ten-year limit being treated as a floor rather than a ceiling. The court found that the learned Single Judge erred in treating the ten-year limit as definitive and not recognizing subsequent amendments that extended the obligation. The court also noted that the appellants' projects were recognized as eligible for free fly ash supply based on administrative documents from the Central Government. Ultimately, the court set aside the learned Single Judge's findings and upheld the appellants' claims for free fly ash supply.

Headnote

A) Environmental Law - Supply of Fly Ash - Obligation to supply fly ash free of cost - Environment (Protection) Act, 1986, Section 3(2)(v) - The court held that the obligation to supply fly ash free of cost and transportation continued for projects with bid due dates between 25.01.2016 and 31.12.2021, despite the 1999 Notification's ten-year limit being treated as a floor, not a ceiling. The learned Single Judge's contrary finding was set aside (Paras 12.1-12.3).

B) Administrative Law - Interpretation of Notifications - Administrative interpretation of statutory obligations - Not mentioned - The court emphasized the importance of administrative interpretations by relevant ministries, which clarified that projects within the specified bid dates continued to be eligible for free fly ash supply (Paras 12.2-12.3).

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Issue of Consideration

Whether the obligation to supply fly ash free of cost and free of transportation survived beyond ten years and continued for projects with bid due dates between 25.01.2016 and 31.12.2021.

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Final Decision

The court upheld the appellants' claims for free fly ash supply, finding that the obligation continued for projects with bid due dates between 25.01.2016 and 31.12.2021, and set aside the learned Single Judge's findings.

Law Points

  • Obligation to supply fly ash
  • free transportation
  • statutory notifications
  • administrative interpretation
  • legitimate expectation
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Case Details

2026 LawText (MAD) (08) 141

W.A.No.3215 and 3216 of 2025

2026-08-20

Sushrut Arvind Dharmadhikari, G. Arul Murugan

Mr. Arvind Datar, Mr. Srinath Sridevan, Mr. K. Srinivasa Murthy, Mr. AR.L. Sundaresan, Mr. M. Vijayan, Mr. P.V. Balasubramaniam

DP Jain Bangalore-Chennai Expressways Private Limited, DPJ Pollachi HAM Project Private Limited

Union of India, Ministry of Road, Transport and Highways, Ministry of Environment, Forest and Climate Change, National Highways Authority of India, NTPC Tamil Nadu Energy Company Ltd, Tamilnadu Generation and Distribution Corporation Limited

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Nature of Litigation

Writ appeals against the dismissal of petitions concerning the supply of fly ash.

Remedy Sought

Appellants sought to quash the learned Single Judge's order and direct TPPs to supply fly ash free of cost and transportation.

Filing Reason

Dispute over the obligation of TPPs to supply fly ash free of cost and transportation.

Previous Decisions

The learned Single Judge dismissed the writ petitions, finding no obligation beyond ten years.

Issues

Whether the obligation to supply fly ash free of cost and free of transportation survived beyond ten years. Whether the appellants' projects fall within the saved class of projects.

Submissions/Arguments

The appellants argued that the obligation to supply free fly ash continued for projects with bid due dates between 25.01.2016 and 31.12.2021. The respondents contended that the writ petitions were not maintainable due to the existence of an arbitration clause.

Ratio Decidendi

The obligation to supply fly ash free of cost and transportation continued for projects with bid due dates between 25.01.2016 and 31.12.2021, despite the 1999 Notification's ten-year limit being treated as a floor, not a ceiling.

Judgment Excerpts

The obligation to supply fly ash free of cost and free transportation continued for projects with bid due dates between 25.01.2016 and 31.12.2021. The learned Single Judge fell into error in treating a provision that had ceased to exist since 2009 as continuing to govern the field in 2021 and thereafter.

Procedural History

The appeals arose from the dismissal of writ petitions by a Single Judge on 15.10.2025, which were filed concerning the obligation of TPPs to supply fly ash.

Acts & Sections

  • Environment (Protection) Act, 1986: Section 3(2)(v)
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