On Thursday, the CJI led Constitutional Bench of Supreme Court has issued Notice in a curative petition filed by Gujarat Urja Vikas Nigam Ltd (GUVL) against its 2019 verdict that upheld termination of a Power Purchase Agreement (PPA) by Adani Power (Mundra) Limited.

The 5-Judge Bench also comprising of Justice UU Lalit, Justice AM Khanwilkar, Justice BR Gavai and Justice Surya Kant stated that the petition raises substantial question of law that can't be ignored and needed to be considered.

The Bench observed:

"We have gone through the curative petition and the relevant documents. In our prima facie opinion, there are substantial questions of law raised in this curative petition, which require consideration. Issue notice," the Court said.

The petition primarily raises objection against a ruling delivered by 3-judge Bench headed by Justice (Retd.) Arun Mishra in July 2019. It was held in the judgement that the Notice of termination of a Power Purchase Agreement by the Adani Power Mundra Limited to the Gujarat Urja Vikas Nigam Limited (GUVNL) in 2009 was legal and valid and thus alowed the former to approach the Central Electricity Regulatory Commission (CERC) for determination of compensatory tariff for the power the company supplied to GUVNL.

The CERC was directed to decide on this issue within three months.

Senior Advocate Dushyant Dave has also wrote a letter to CJI in which he had stated that commercial stakes of Adani Group were misrepresented which led to violation of practice and procedure of Supreme Court.

He wrote:

"Clearly, hearing and disposal of these two appeals have been done in complete contravention of the settled practice of the Supreme Court as also its established procedure. Further, he added, “Both these matters were listed, taken up and heard without any justification, and in hurry and in an improper manner. As a result, besides causing grave injury to public interest and public revenue, it has caused immense damage to the image of the Supreme Court and the administration of justice.”

BACKGROUND

Back in 2007, Adani Power signed a PPA with GUVNL for the supply of 1,000 MW power at a certain rate from its power project situated in Korba in Chhattisgarh. The Company later changed the location to plant situated in Mundra instead of Korba and therefore another PPA was signed between both the parties. The GMDC assured Adani Power of supply.

However, GMDC didn't stand on its promise and didn't supply coal to Adani Power resulting in the latter sending several reminders. Adani Power subsequently terminated the PPA and fulfilled the condition of payment of liquidated damages as was stipulated.

The termination Notice was challenged before the Gujarat Electricity Regulatory Commission (GERC) which held that Adani Power illegally terminated the PPA. The decision was further upheld by the Appellate Tribunal for Electricity. This led to the matter landing before the Supreme Court which followed the ruling by Justice (Retd) Arun Mishra overturning the decisions of GERC and Appellate Tribunal for Electricity. 

The 3-Judge Bench also comprising of Justice BR Gavai and Justice  Surya Kant quashed the Review Petition filed by GUVL as well.

The matter will be next heard on 30th Sept in an open court.

Read Order Here:

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