Viceroy Hotels Wins ₹3.56 Crore Telangana High Court Case

Key Quantitative Figures

The subject of the litigation was a demand notice for ₹3,55,99,834 (Rupees Three Crores Fifty-Five Lakhs Ninety-Nine Thousand Eight Hundred and Thirty-Four only) issued by Southern Power Distribution Company of TS Limited.

Chronology of Events & Parties Involved

• 31-Jan-2025: Company received a demand notice (Lr. No. SE/OP/CC/HYD/SAO/AAO(HT)/JAO(H.T.)/D.No.7077/2025) from Southern Power Distribution Company of TS Limited for cross-subsidy surcharge for financial years 2005-06 to 2014-15.
• The demand was made pursuant to a common order of the Hon'ble High Court of Telangana dated 12.02.2020 and an order from the Telangana Electricity Regulatory Commission (TGERC) dated 30.08.2024, which re-determined the cross-subsidy surcharge.
• 04th March, 2025: Company made an initial disclosure to the exchanges regarding this demand.
• The Company filed a writ petition (WP No. 5687 of 2025) in the Hon'ble High Court of Telangana challenging the demand notice.
• 25.02.2025: The Hon'ble High Court passed an interim order restraining Southern Power Distribution Company from taking any coercive steps and directed them to file a counter.
• 02nd September, 2026: The Hon'ble High Court passed its final order.
• 10th September, 2026: The Company received the final order.

Outcome and Rationale

The Hon'ble High Court of Telangana allowed the company's writ petition and set aside the demand notice dated 31-Jan-2025. The court held that, pursuant to the successful completion of the Corporate Insolvency Resolution Process (CIRP) and the approval of a resolution plan (which resulted in a change in management), the company is entitled to the benefit of immunity under Section 32A of the Insolvency and Bankruptcy Code, 2016. The court concluded that no action could continue against the company for this demand.

Financial and Operational Impact

• Expected financial implications: Not Applicable.
• Quantum of claims: Not Applicable.
• Impact of settlement: Not Applicable, as the litigation did not involve any monetary payment or settlement.

The disclosure explicitly states there are no financial implications due to compensation or penalty from this outcome.

Status and Finality

The development represents a change in status, bringing the long-standing litigation to a final conclusion in favour of Viceroy Hotels Limited. The order provides finality and relief to the company, marking an end to this specific litigation.