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SANJAY KUMAR, SATISH CHANDRA SHARMA
Chamundeshwari Electricity Supply Company Ltd. (CESC) – Appellant
Versus
Saisudhir Energy (Chitradurga) Pvt. Ltd. – Respondent
Headnote: Read headnote
JUDGMENT
SATISH CHANDRA SHARMA, J.
STATEMENT OF FACTS
1. This appeal is arising from the judgment dated 21.03.2018 of the Appellate Tribunal for Electricity, New Delhi (the “APTEL”), whereby the APTEL has affirmed the order dated 28.01.2015 of the Karnataka Electricity Regulatory Commission (the “State Commission”“KERC”), whereby the State Commission directed Chamundeshwari Electricity Supply Corporation Limited, the Appellant herein, to restore to the Developer i.e. Respondent No. 1 herein, the amount realised from the encashment of the performance bank guarantee; extend the timelines for fulfilment of contractual obligations; and to undertake renegotiation of the tariff under the Power Purchase Agreement (the “PPA”) for a solar power project.
2. The Appellant, Chamundeshwari Electricity Supply Company Limited (“Chamundeshwari” “CESC”), is a
(1) Appeal to Supreme Court – Requirement under Section 125 of Electricity Act, 2003 is not merely a ‘question of a law’ but a ‘substantial question of law’ – APTEL as an appellate body is to hear ap....
Imposition of penalty for delay in commissioning of plant as per PPA is justified, termination of PPA not.
The jurisdiction of CERC is limited to matters covered by clauses (a) to (k) of Sub-Section 1 of Section 79 of the Electricity Act, 2003.
Power purchase agreements must be aligned with regulatory frameworks and cannot be enforced if unapproved, particularly regarding classifications impacting fixed charges.
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