SUPREME COURT OF INDIA
Vineet Saran, Aniruddha Bose, JJ.
Adani Power Rajasthan Limited – Appellant
Versus
Shri Subodh Agarwal & Ors. – Respondents
Contempt Petition (Civil) No(S). 877-878 of 2021 in Civil Appeal No(S).8625-8626 of 2019
Decided On : 25-02-2022
Contempt Petition - Non-compliance of judgment - Change in law - Electricity supply - RERC Order - APTEL judgment - Relief in favor of petitioner - Calculation of loss due to change in law - Dispute over payment due to change in law - Disputed payments made by respondents - Contempt of court for non-compliance
Fact of the Case:
The petitioner, Adani Power Rajasthan Limited, filed a Contempt Petition alleging non-compliance of the court's judgment dated 31.08.2020. The dispute arose from the petitioner's claim for additional payments due to the non-supply of domestic coal, leading to the purchase of imported coal at a higher cost. The petitioner sought relief for the change in law, which was upheld by RERC, APTEL, and the Supreme Court. The respondents disputed the payments made and raised issues regarding the calculation of the amount due to the petitioner.
Finding of the Court:
The court found that the respondents were liable for contempt for not complying with the court's order dated 31.08.2020. The court directed the respondents to pay the principal amount minus the deposited sum, along with interest, within four weeks, failing which the respondents would have to appear before the court in person.
Issues: The main issue was the calculation of the amount due to the petitioner for the change in law, and the disputed payments made by the respondents. The court also addressed the question of contempt for non-compliance with its previous judgment.
Ratio Decidendi: The court affirmed the relief in favor of the petitioner regarding the change in law and upheld the calculation of the amount due as per the RERC Order and APTEL judgment. The court held the respondents liable for contempt for not complying with its previous judgment.
Final Decision: The court directed the respondents to pay the principal amount minus the deposited sum, along with interest, within four weeks, failing which the respondents would have to appear before the court in person.
ORDER
1. This Contempt Petition has been filed by Adani Power Rajasthan Limited alleging non-compliance of judgment of this Court dated 31.08.2020, against which the Review Petition No.1811-1812 of 2020 has also been dismissed on 02.03.2021.
2. In short, the dispute in the Civil Appeal was with regard to the certain additional payments which the petitioner claims that it was entitled to because of change in law. Very briefly stated, the facts are that the petitioner was to supply electricity to the respondent-Discoms, which was to be generated by the petitioner- company, for which, as per the agreement, the respondents was to supply domestic coal (linkage coal). However, undisputedly, the domestic coal was not provided to the petitioner. Since the petitioner- company was, as per the agreement, required to supply uninterrupted power, it had to purchase imported coal (linkage coal) at a much higher cost. A claim for loss due to non supply of domestic coal because of which petitioner had to purchase imported coal was raised by the petitioner before the Rajasthan Electricity Regulatory Commission (for short 'RERC'), which vide its Order dated 17.05.2018 held that the petitioner would be entitle to the relief of change in law, which was held to be the difference of landed cost of alternate coal/imported coal as certified by auditor and landed cost of domestic linkage coal.
3. In the aforesaid facts, the only dispute for the purpose of calculation of loss due to change in law was the actual landed cost of alternate coal minus landed cost of domestic linkage coal.
4. After the RERC decided the said dispute, the matter was challenged before the Appellate Tribunal for Electricity (for short 'APTEL'), which dismissed the appeal of the respondents vide its judgment dated 14.09.2019 and upheld the order of the RERC. The respondents then challenged the said Order before this Court, and a three Judge Bench of this Court also dismissed the appeal and confirmed the relief in favour of the petitioner regarding the change in law i.e. the petitioner was to be paid the difference between the actual landed cost of alternate coal/imported coal minus the actual landed cost of domestic linkage coal. This Court, by its judgment dated 31.08.2020, had limited the relief to the extent that the respondent-Discoms were to pay interest/late payment surcharge only as per the applicable SBAR for the relevant years, which should not exceed 9% with annual compounding.
4. It is noteworthy that after the Order was passed by RERC, while the matter was pending before the APTEL, an interim order was passed by APTEL that pending final decision of the appeal, the Discoms shall pay 70% of the compensation claimed/demanded by the petitioner, as provisional compensation, within two weeks. The said interim order of APTEL was challenged before this Court, which in turn, by an order dated 29.10.2018, directed that instead of 70% of the compensation claimed/demanded by the petitioner, only 50% be paid. It was also noted in the said Order that the total claim was stated to be in the region of about Rs.5,000 crores. Pursuant thereto, out of the claim of the petitioner, which was for an amount of Rs.5344.75 crores upto the relevant point of time, the petitioner was paid Rs.2426.81 crores. It is noteworthy that the order of RERC was upheld by APTEL, which in fact means that the claim of the petitioner was accepted. As per the same calculation, which was for an amount of Rs. 5344.75 crores up to March, 2021, a further claim of Rs.130.69 crores has been raised for the period of April to November, 2021. As such, according to the petitioner, the total sum due comes to Rs.5344.75 crores + Rs.130.69 crores = Rs.5475.44 crores. After deducting the amount of Rs.2426.81 crores paid under the interim order, the amount due to be paid was Rs.3048.63 crores. According to the petitioner, since the claim made by the petitioner, in terms of RERC Order, was upheld by the APTEL, thereafter also uphe
The main legal point established in the judgment is the court's affirmation of the relief in favor of the petitioner regarding the change in law, the calculation of the amount due, and the liability ....
Normally, costs must go with succeeding party in case of a contractual dispute.
The term “Law” in the PPAs would include all applicable rules, regulations, orders, Notifications issued by an Indian Governmental Instrumentality and shall also include all rules, regulations, decis....
The Notification imposing Evacuation Facility Charges constitutes a change in law, entitling the affected party to compensation from that date.
Companies or juristic entities cannot be punished for contempt; specific individuals must be named for compliance responsibilities.
Expert bodies' decisions should not be interfered with unless they violate statutory provisions or are arbitrary.
(1) Condition precedent for entertaining appeal under Section 125 of Electricity Act, 2003 is existence of a substantial question – A question of law which arises incidentally or collaterally and has....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.