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SUPREME COURT OF INDIA
KURIAN JOSEPH, A.M. KHANWILKAR, JJ.
TUPPADAHALLI ENERGY INDIA PVT LTD. – APPELLANTS
VERSUS
KARNATAKA ELEC. REG. COMM. & ANR. – RESPONDENTS
CIVIL APPEAL NO. 8736 OF 2013 WITH CIVIL APPEAL NOS. 10290-10291 OF 2014
Decided On : 10-01-2017
Interpretation - Power Purchase Agreement - The court interpreted Clause 6.5 of the Power Purchase Agreement as an incentive for prompt payment of the monthly tariff invoice, rather than a one-time expenditure.
Fact of the Case:
The court interpreted Clause 6.5 of the Power Purchase Agreement as an incentive for prompt payment of the monthly tariff invoice.
Finding of the Court:
The court found that Clause 6.5(v) of the Power Purchase Agreement is a rebate for prompt payment of the monthly invoice, in line with the views of the Karnataka Electricity Regulatory Commission and the Appellate Tribunal for Electricity.
Issues: Interpretation of Clause 6.5 of the Power Purchase Agreement
Ratio Decidendi: Clause 6.5(v) is interpreted as a rebate for prompt payment of the monthly invoice, not a one-time expenditure.
Final Decision: The court upheld the interpretation of Clause 6.5(v) as a rebate for prompt payment of the monthly invoice.
JUDGMENT
Kurian, J.
On the interpretation of Clause 6.5 of the Power Purchase Agreement, both the Karnataka Electricity Regulatory Commission (KERC) and the Appellate Tribunal for Electricity (APTEL) have taken a view that it is actually an incentive for the prompt payment of the monthly tariff invoice. Though Sh. S. Ganesh, learned senior counsel, persuasively submitted that it is only a one-time expenditure contemplated under the Power Purchase Agreement, we too are unable to accept the contention.
2. No doubt, there is a provision under Clause 6.2 for interest on belated payment, but Clause 6.5(v) is actually a rebate for prompt payment of the monthly invoice. The view thus taken by the KERC and the APTEL, being a plausible view, we do not find any substantial question of law so as to warrant us to exercise our powers under Section 125 of the Electricity Act, 2003.
3. The appeals are, accordingly, appeals .
No costs.
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