Madras HC: Plaintiff seeks Rs. 2.57 Crores plus 18% interest for unpaid machinery supply to Tamil Nadu Co-operative Union

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Published 27 October 2026

Case: M.Mohan v. Tamil Nadu Co Operative Union
Court: Madras High Court
Decided: 26 October 2026
Source: Indian Kanoon (Madras HC)

Bottom Line Up Front (BLUF)

In M.Mohan v. Tamil Nadu Co Operative Union, decided on 2026-10-26, the Madras High Court heard a civil suit where the plaintiff sought Rs. 2,57,91,638/- with 18% interest. The plaintiff, M/s. Sivasakthi Corporation, claimed the defendant failed to pay for machinery supplied to nine Industrial Training Institutes and did not take delivery of further ordered goods.

Ratio Decidendi · Legal Principle Established

The court is considering a civil suit for recovery of money based on alleged breach of contract for supply of goods, where the plaintiff claims outstanding payments and damages for unaccepted deliveries.

Practice & Procedural Impact for Advocates

Advocates should ensure all supply orders, delivery receipts, and payment records are meticulously documented. Litigants must be prepared to demonstrate the value of goods supplied and the terms of the contract to support claims for outstanding payments and interest.

Key Legal Takeaways

1Plaintiff seeks recovery of outstanding payment for goods supplied.
2Claim includes interest at 18% per annum from the date of suit.
3The dispute arises from a contract for machinery supply to ITIs.

The Legal Issue This Civil Suit was filed by M. Mohan, proprietor of M/s. Sivasakthi Corporation, against the Tamil Nadu Co-operative Union. The plaintiff sought a direction for the defendant to pay a sum of Rs. 2,57,91,638/-, along with interest at 18% per annum from the date of institution of the suit until realization, and costs. The core of the dispute revolves around an alleged outstanding balance for machineries and equipment supplied to nine Industrial Training Institutes in Tamil Nadu.

Court's Reasoning The plaintiff, engaged in supplying spares, scraps, tools, instruments, and computer components, received an order from the defendant on 06.06.2012 for machineries and equipment totaling Rs. 6,86,93,549/-. The plaintiff claimed to have supplied goods worth Rs. 4,97,14,956/- during 2012, adhering to specifications prescribed by the National Council for Vocational Training (NCVT). However, the defendant allegedly paid only Rs. 2,39,23,318/-, leaving an unpaid balance of Rs. 2,57,91,638/-. Furthermore, the plaintiff stated that orders were placed with his principal supplier for the remaining machineries worth Rs. 1,89,78,593/-, but the defendant failed to take delivery of these goods.

What Follows The Madras High Court is currently seized of the matter. The suit will proceed to determine the validity of the plaintiff's claims regarding the outstanding payment and interest, and whether the defendant is liable for the alleged breach of contract and failure to take delivery of the remaining goods.