JUDGMENT

S. RAVINDRA BHAT, J.

1. The present judgment will dispose of two appeals preferred under Section 125 of the Electricity Act, 2003. One appeal (CA 2969/2010) has been preferred by the Gujarat Urja Vikas Nigam Ltd. (hereafter,"Gujarat Urja"or "GUVN”) ;the second (CA 2793/2010) has been preferred by CLP (India) Pvt. Ltd. (formerly, Gujarat Torrent Energy Corporation Ltd; later, Gujarat Paguthan Energy Corporation Ltd, a generating company, hereafter collectively "CLP”). Both appeals challenge a common order of the Appellate Tribunal for Electricity(“APTEL” hereafter).

2. The erstwhile Gujarat Electricity Board (GEB) (now “Gujarat Urja”) entered into a power purchase agreement (“PPA”)with CLP on 03.02.1994. In terms of the PPA, Gujarat Urja was under an obligation to purchase - and CLP was under corresponding obligation to supply - 635 MW of electricity; the tenure of the agreement was 20 years. In terms of Section 43(A) of the Electricity Supply Act, 1948, (hereafter"the Act"), a generating company may enter into a contract for the sale of electricity with the Electricity Board and the tariff for the sale of electricity shall be determined by the authority through the notificati