Shree TNB Polymers Limited seeks Rs 3.2780518 crore in solar suit

Shree TNB Polymers Limited has sought Rs 3.2780518 crore in a pending solar-defect suit after alleging that sparking, water leakage, panel failures and inverter faults forced the shutdown of its 243.75 KW solar roof system on December 20, 2024. The company alternatively seeks an entirely new system in Commercial Suit No. 06/2026.

What has Shree TNB Polymers asked the court to award in the solar suit?

Shree TNB Polymers has asked the Civil Judge (S.D.) at Silvassa for Rs 3.0780518 crore in compensation and damages, with applicable interest, plus Rs 20 lakh for loss of reputation, commercial harassment, business disruption and actual financial losses. The stated monetary relief therefore totals Rs 3.2780518 crore in Commercial Suit (Civil Court) No. 06/2026, instituted on July 1, 2026.

Shree TNB Polymers brought the civil suit against M/s Khanak System, Visaka Industries Limited, Visaka Industries’ directors and other individuals. The company alleges that Khanak System supplied and installed the solar system, while Visaka Industries manufactured it and directed its design and installation. These are the company’s allegations in a pending case, not findings by the court.

The company has also requested an alternative remedy: a direction requiring the defendants to provide an entirely new solar system. That request means the case concerns both recovery of the claimed monetary losses and the potential replacement of a 243.75 KW operating asset. The prospectus does not disclose a settlement, liability finding or replacement order.

How did Shree TNB Polymers say its solar system became non-functional?

Shree TNB Polymers alleges that the solar system commenced electricity generation on or about June 22, 2022 but later developed water leakage, solar-panel failures and frequent inverter faults. An inverter converts electricity generated by solar modules for use in an electrical system. According to the company, the reported defects meant that the installation did not operate at its expected capacity.

The company says the defendants attempted remedial measures that included replacing solar panels, applying chemical treatment, conducting insulation-resistance tests and replacing faulty modules. Shree TNB Polymers alleges that the defects continued despite those actions and that no permanent solution was supplied. Its claim consequently depends on the court’s assessment of the alleged defects, their cause and the responsibility of the named defendants.

Shree TNB Polymers further alleges that inverter tripping, water leakage and other technical problems continued during 2024. It says extreme sparking was observed at inverter and solar-module power terminals on December 20, 2024, requiring shutdown of the entire system for safety and fire-related reasons. The company alleges that the system remained non-functional thereafter, despite repeated communications and a joint meeting with the defendants on November 15, 2024.

What does Shree TNB Polymers’ Rs 3.2780518 crore solar claim include?

Shree TNB Polymers says it ordered the 243.75 KW solar roof system for Rs 1.2898938 crore, inclusive of goods and services tax (GST), and incurred another Rs 46.23062 lakh for installation, structure and related works. Together, the stated equipment order and installation expenditure equal Rs 1.7522 crore. That sum is distinct from the later direct-damages claim because the latter also includes bank interest.

The largest claimed component is Rs 2.4351 crore of direct damages and costs related to the solar system, including bank interest and installation expenses. The prospectus does not separately state the bank-interest amount or the period over which it was incurred. It also does not specify whether the claimed direct costs overlap with every part of the stated Rs 46.23062 lakh installation expenditure.

Shree TNB Polymers separately claims Rs 51.795185 lakh for loss from non-generation of electricity and Rs 12.5 lakh for employees who monitored and attended to the allegedly defective system. Those three stated components total Rs 3.07805185 crore, which is Rs 5 more than the Rs 3.0780518 crore decree amount stated in the disclosure. The company additionally seeks Rs 20 lakh for reputation loss, commercial harassment, disruption and other financial losses, producing its stated total request of Rs 3.2780518 crore.

Why does the claimed loss depend on the shutdown and resolution of defects?

Shree TNB Polymers’ Rs 51.795185 lakh claim for non-generation is linked to its allegation that the installation could not produce electricity after the December 20, 2024 shutdown. The claimed economic effect is therefore broader than the Rs 1.2898938 crore equipment order: it includes asserted direct system costs, financing costs, employee attention and foregone electricity generation.

The disclosure distinguishes the period when the system began generation around June 22, 2022 from the subsequent period of alleged defects and the later full shutdown. Shree TNB Polymers says that module replacements, chemical treatment and insulation-resistance tests did not resolve the issues permanently. However, the prospectus supplies no electricity-output data, tariff assumption, generation forecast or calculation supporting the Rs 51.795185 lakh non-generation claim.

For the installation to return to use under the company’s account, the alleged leakage, panel failures, inverter faults and sparking would have to be resolved. Whether that happens through repair, a replacement system or another outcome remains unresolved because the suit is pending. The company’s alternative request for a new system is specifically contingent on the court’s determination of the requested compensation and damages.

What is the current legal position and materiality of the solar dispute?

Shree TNB Polymers’ solar dispute remains pending before the Civil Judge (S.D.) of Silvassa, and the next hearing is scheduled for October 3, 2026. No judgment, settlement, compensation award or order for a new solar system is disclosed. The court has yet to decide whether the alleged defects occurred, whether the defendants are liable and what remedy, if any, should follow.

The company’s board set its Material Litigation policy on September 25, 2025. Under that policy, a matter is material when its value or expected impact exceeds the lower of 2% of latest restated turnover of Rs 3.9625 crore, 2% of net worth of Rs 1.1136 crore, or 5% of the average absolute profit or loss after tax for the preceding three years of Rs 29.89 lakh. The solar case’s stated Rs 3.2780518 crore monetary relief is above each of those three figures.

The prospectus says Shree TNB Polymers had no outstanding civil litigation against it as of the red herring prospectus date, but it lists civil cases initiated by the company. One separate case, filed against Indrani Constructions on January 17, 2024, seeks Rs 36.58644 lakh plus interest at 24% a year for unpaid goods, with a hearing scheduled for November 3, 2026. Unlike that recovery action, the solar case includes an alternative request to replace a solar-generation system.

Conclusion

Shree TNB Polymers presents the solar case as a dispute over an installation that allegedly underperformed after beginning generation in June 2022 and was shut down in December 2024 after alleged sparking. Its Rs 3.2780518 crore monetary request combines claimed direct system and financing costs, non-generation losses, employee costs and asserted disruption-related losses, while the court has made no finding on those allegations.

The next disclosed development is the October 3, 2026 hearing in Commercial Suit No. 06/2026. The issues to watch are whether adjudication establishes responsibility for the alleged defects, whether the claimed loss components are accepted, and whether the eventual remedy is compensation, a new 243.75 KW solar system or neither.