The Society had filed a PIL asking for a stay on the project, as it was harming the environment.
The petitioners stated that the Central Government had given permission on November 26, 2007, for the diversion of 3.144 hectare of forest land for the power project.
The land allotted, the petitioners alleged, was forest land and using it for the 5 MW power project was harming the environment.
However, the division bench comprising Chief Justice P D Dinakaran and Justice Mohan Shantanagoudar on Wednesday said that the plant had been generating power for the last one year and it would not be proper to restrain the respondent. The matter has been adjourned.