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Supreme Court requests Adani Power’s response in 3 weeks on Guvnl’s curative plea against Ppa termination


In a significant development on September 17, the bench decided to hear in open court the curative petition of GUVNL which, according to industry estimates, is to pay Adani Power nearly 11.00 crore rupees.

The Supreme Court on Thursday asked Adani Power (Mundra) Ltd to respond within three weeks to a curative plea from Gujarat Urja Vikas Nigam Ltd (GUVNL) challenging the 2019 Supreme Court verdict which upheld the termination by the private company a pact with the state PSU. A five-judge constitutional bench led by Chief Justice NV Ramana conducted a rare public hearing of a curative plea in a trade dispute and took note of the submissions of senior lawyers Harish Salve and Mukul Rohatgi, appearing for Adani Power, who ‘some time could be allowed for the filing of the response to the GUVNL.

The Respondent (Adani Power) requested time to file a response to the motion. A period of three weeks was granted for the filing of the rejoinder and two weeks thereafter for the filing of the rejoinder (by GUVNL). Heard on November 17, ordered the court which also included judges UU Lalit, DY Chandrachud, BR Gavai and Surya Kant. The highest court also ordered the removal of Consumer Education and Research Society and a Sunil B Oza as parties to the dispute after Attorney General KK Venugopal, representing the state corporation, submitted it.
In a significant development on September 17, the bench decided to hear in open court the curative petition of GUVNL which, according to industry estimates, is to pay Adani Power nearly 11.00 crore rupees. “We have gone through the curative request and the relevant documents. In our opinion, there are substantive questions of law raised in this curative request, which require examination,” the magistrate ordered, listing the plea hearing on September 30. .

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A bench of three judges, in July 2019, ruled that the notice of termination of an electricity purchase contract or a PPA by Adani Power to GUVNL in 2009 was legal and valid. He had ordered the Central Electricity Regulatory Commission (CERC) to determine the compensatory tariff for the electricity supplied by Adani Power to the state PSU. The verdict said the court should give effect to the “clear, literal and grammatical” meaning of clauses used in a contract.

Adani Power (Mundra) Ltd had signed a PPA with GUVNL in 2007 to supply 1,000 MW of electricity from its project located in Korba, Chhattisgarh. Adani rescinded the pact citing the supply of coal from Gujarat Mineral Development Corporation, saying electricity supply is conditional on coal supply.

The PPA termination notice was challenged by GUVNL before the Gujarat Electricity Regulatory Commission, which ruled the termination illegal. The highest court, however, reversed the conclusions.

(With text entry from PTI)

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