JAIPUR VIDYUT VITRAN NIGAM LTD. & ORS. versus ADANI POWER RAJASTHAN LTD. & ANR.

JAIPUR VIDYUT VITRAN NIGAM LTD. & ORS. versus ADANI POWER RAJASTHAN LTD. & ANR.

The Coal India notification dated 19.12.2017 imposing Evacuation Facility Charges constituted a 'change in law' under the PPA; Article 10.2.1's restitutionary principle entitles the generator to compensation to restore its economic position; Article 10.5.1(i) governs the effective date (the date of the notification) so compensation and carrying cost (at LPS compounding rates) are payable from that date; Article 10.5.1(ii) is inapplicable as there was no change in interpretation by a Court, Tribunal or Indian Governmental Instrumentality; the APTEL's decision was upheld and the appeal dismissed.

Parties
Appellants: Jaipur Vidyut Vitran Nigam Ltd. & Ors.; Respondents: Adani Power Rajasthan Ltd. & Anr.
Jurisdiction
India
Judgment Date
23 May 2025
Procedural Posture
Civil Appeal No. 4336 of 2025 Under Section 125 of the Electricity Act, 2003 / Appeal to the Supreme Court; Judgment on Merits (appeal Dismissed)
Outcome
Appeal dismissed
Legal Topics
Change in Law, Power Purchase Agreement, Tariff Adjustment, Evacuation Facility Charges, Late Payment Surcharge, Restitutionary Principle, Supplementary Bill
Electricity Law Contract Law Civil Procedure Change in Law Power Purchase Agreement Tariff Adjustment Evacuation Facility Charges Late Payment Surcharge +2 more

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Parties

Jaipur Vidyut Vitran Nigam Ltd. & Ors.

Appellants

Adani Power Rajasthan Ltd. & Anr.

Respondents

Procedural Posture

Civil Appeal No. 4336 of 2025 Under Section 125 of the Electricity Act, 2003 / Appeal to the Supreme Court; Judgment on Merits (appeal Dismissed)

Legal Issues

  1. 1 Whether Coal India Limited's notification imposing Evacuation Facility Charges constituted a 'change in law' under the PPA
  2. 2 Interpretation of Article 10.2.1 vis-à-vis Article 10.5 of the PPA, specifically Article 10.5.1(ii)

Ratio Decidendi

The Coal India notification dated 19.12.2017 imposing Evacuation Facility Charges constituted a 'change in law' under the PPA; Article 10.2.1's restitutionary principle entitles the generator to compensation to restore its economic position; Article 10.5.1(i) governs the effective date (the date of the notification) so compensation and carrying cost (at LPS compounding rates) are payable from that date; Article 10.5.1(ii) is inapplicable as there was no change in interpretation by a Court, Tribunal or Indian Governmental Instrumentality; the APTEL's decision was upheld and the appeal dismissed.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Pending application(s) disposed of