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M/s. Adani Power (Mundra) Ltd. v. Gujarat Electricity Regulatory Commission

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 11133 of 2011)Decided 3 Dec 2015
Civil Appeal No. 11133 of 2011
Justice J. Chelameswar · Justice Abhay Manohar Sapre

Background

This is an interim order, not a final judgment. In an appeal about the termination of a Power Purchase Agreement, Adani Power applied for a stay of the orders of the Gujarat Electricity Regulatory Commission and APTEL and suspension of power supply, or alternatively for compensatory tariff payments. The stay prayer was not pressed.

Decision Breakdown

This is an interim order, not a final judgment. The Court held that no direction could be given at this stage on compensatory tariff, because the right to it is one of the issues in the appeal. It said the State-owned buyer, GUVNL, may decide on its own to pay compensatory tariff, subject to the result of the appeal.

Lesson Learnt

There is no final ruling yet on whether the termination of the Power Purchase Agreement was valid. Any compensatory payment remains subject to the final result of the appeal.

Official source (sci.gov.in)View Judgment (PDF)

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