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M. M. SUNDRESH, RAJESH BINDAL
Jaipur Vidyut Vitran Nigam Ltd. – Appellant
Versus
Adani Power Rajasthan Ltd. – Respondent
JUDGMENT :
M. M. Sundresh, J.
1. Admit.
2. We have heard the learned Senior Counsel, Mr. Shyam Divan and learned Counsel, Mr. Karthik Seth appearing for the appellants and the learned Senior Counsel, Dr. Abhishek Manu Singhvi appearing for the respondent No. 1, at length. All the relevant documents, including the written submissions of the parties, have been perused.
3. In pursuance of the Letter of Intent issued to Adani Power Rajasthan Ltd. (respondent No.1-Power Generator), on 17.12.2009, a Power Purchase Agreement (hereinafter referred to as the “PPA”) dated 28.01.2010 was entered into between appellant Nos.1, 2 and 3, who are the Rajasthan Discoms engaged in the distribution and supply of electricity, on one side and respondent No.1 on the other, for the supply of 1200 MW Aggregate Contracted Capacity at a levelized tariff of Rs.3.238 per unit. The same was duly approved by respondent No.2.
4. While the agreement was in operation, a Notification came to be issued at the instance of M/s. Coal India Limited (hereinafter referred to as “CIL”), dated 19.12.2017, imposing a levy of Evacuation Facility Charges (hereinafter referred to as the “EFC”) with effect from 20.12.2017. Immediatel
The Notification imposing Evacuation Facility Charges constitutes a change in law, entitling the affected party to compensation from that date.
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 central legal point established in the judgment is the entitlement to compound interest on carrying cost under the restitutionary principle of the PPAs, emphasizing the aim of restituting the aff....
(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....
Carrying Cost is compensable for Change in Law events, and the affected party must be restored to its original economic position, supporting claims for compound interest.
Definition of “Law” is wide enough to include all rules, regulations, orders, notifications by Governmental instrumentalities.
Any change resulting in a cost impact on selling electricity constitutes a Change in Law event, entitling affected parties to compensation under PPAs.
Expert bodies' decisions should not be interfered with unless they violate statutory provisions or are arbitrary.
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