GMR WARORA ENERGY LIMITED versus CENTRAL ELECTRICITY REGULATORY COMMISSION (CERC) & ORS.

GMR WARORA ENERGY LIMITED versus CENTRAL ELECTRICITY REGULATORY COMMISSION (CERC) & ORS.

The Supreme Court held that the PPA definition of 'Law' covers statutory instruments, notifications, circulars and orders of governmental instrumentalities and regulatory commissions; consequently increases or introductions after the cut-off date of Busy Season Surcharge, Development Surcharge, Port Congestion Surcharge (Railways), MoEF notifications on coal quality, changes in NCDP, Forest Tax (Chhattisgarh notification), Add-on premium, and EFC (CIL circular) qualify as 'Change in Law' events entitling generators to restitutionary compensation. The Court upheld awards of carrying cost and confirmed that carrying cost may be awarded as compound interest from the date of occurrence of the...

Parties
Appellant/generator: GMR Warora Energy Limited; Respondent(s): Central Electricity Regulatory Commission & Ors.
Jurisdiction
India
Judgment Date
20 April 2023
Procedural Posture
Civil Appeal Under Section 125 of the Electricity Act, 2003 / Final Judgment on Appeals Before the Supreme Court
Outcome
All appeals dismissed
Legal Topics
Change in Law, Carrying Cost, Power Purchase Agreements (ppa), New Coal Distribution Policy (ncdp), Evacuation Facility Charges (efc), Busy Season Surcharge, Development Surcharge, Forest Tax, Mo EF Coal Quality Notification
Electricity Law Administrative Law Contract Law Public Law Change in Law Carrying Cost Power Purchase Agreements (ppa) New Coal Distribution Policy (ncdp) +5 more

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Parties

GMR Warora Energy Limited

Appellant/generator

Central Electricity Regulatory Commission & Ors.

Respondent(s)

Procedural Posture

Civil Appeal Under Section 125 of the Electricity Act, 2003 / Final Judgment on Appeals Before the Supreme Court

Legal Issues

  1. 1 Whether various notifications/circulars/orders issued by instrumentalities of the State (including Ministry of Railways/Railway Board, MoEF, CIL, State Governments) constitute 'Change in Law' under the PPAs
  2. 2 Whether Busy Season Surcharge, Development Surcharge and Port Congestion Surcharge imposed/raised by Indian Railways/Railway Board are 'Change in Law' events
  3. 3 Whether MoEF notifications mandating beneficiated coal (ash <34%) amount to 'Change in Law'

Ratio Decidendi

The Supreme Court held that the PPA definition of 'Law' covers statutory instruments, notifications, circulars and orders of governmental instrumentalities and regulatory commissions; consequently increases or introductions after the cut-off date of Busy Season Surcharge, Development Surcharge, Port Congestion Surcharge (Railways), MoEF notifications on coal quality, changes in NCDP, Forest Tax (Chhattisgarh notification), Add-on premium, and EFC (CIL circular) qualify as 'Change in Law' events entitling generators to restitutionary compensation. The Court upheld awards of carrying cost and confirmed that carrying cost may be awarded as compound interest from the date of occurrence of the...

Court Disposition

All appeals dismissed

Orders

  • All appeals dismissed
  • No costs