GUJARAT URJA VIKAS NIGAM LIMITED versus TARINI INFRASTRUCTURE LTD. & ORS.

GUJARAT URJA VIKAS NIGAM LIMITED versus TARINI INFRASTRUCTURE LTD. & ORS.

The tariff fixed under a Power Purchase Agreement by the State Electricity Regulatory Commission in exercise of statutory powers is not inviolable and may be reviewed or modified by the Commission, especially where regulations permit periodic review or adjustment for uncontrollable factors, and public interest requires such flexibility.

Parties
Appellant: Gujarat Urja Vikas Nigam Limited; Respondent: Tarini Infrastructure Ltd.; Respondent: Junagadh Power Projects Pvt. Ltd.; Respondent: Narmada Water Resources Department
Jurisdiction
India
Judgment Date
05 July 2016
Procedural Posture
Civil Appeal / Final Decision on Appeal From Appellate Tribunal
Outcome
Appeals dismissed
Legal Topics
Power Purchase Agreement, Tariff Review, Statutory Regulatory Powers, Public Interest, Contractual Modification
Electricity Law Administrative Law Contract Law Power Purchase Agreement Tariff Review Statutory Regulatory Powers Public Interest Contractual Modification

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Parties

Gujarat Urja Vikas Nigam Limited

Appellant

Tarini Infrastructure Ltd.

Respondent

Junagadh Power Projects Pvt. Ltd.

Respondent

Narmada Water Resources Department

Respondent

Procedural Posture

Civil Appeal / Final Decision on Appeal From Appellate Tribunal

Legal Issues

  1. 1 Whether the State Electricity Regulatory Commission can review and modify tariff fixed under a Power Purchase Agreement
  2. 2 Is the tariff fixed under a PPA inviolable and beyond review by the Commission

Ratio Decidendi

The tariff fixed under a Power Purchase Agreement by the State Electricity Regulatory Commission in exercise of statutory powers is not inviolable and may be reviewed or modified by the Commission, especially where regulations permit periodic review or adjustment for uncontrollable factors, and public interest requires such flexibility.

Court Disposition

Appeals dismissed

Orders

  • Orders dated 31.05.2012 and 02.12.2013 of the Appellate Tribunal for Electricity affirmed.
  • Parties to bear their own costs.