The Supreme Court, on Monday (March 18), dismissed a Miscellaneous Application filed by Adani Power Ltd, seeking payment of Rs. 1376.35 crores as an outstanding Late Payment Surcharge (LPS) from Jaipur Vidyut Vitran Nigam Limited (JVVNL). This decision came after the modification of a 2020 judgment, with the bench comprising Justices Aniruddha Bose and Sanjay Kumar asserting that such an application wasn’t the appropriate legal recourse for claiming LPS.
Justice Aniruddha Bose, while reading out the operative part of the Judgment, stated, “The miscellaneous application is not the proper legal course to make the demand on that count. Relief of this nature cannot be asked or in a miscellaneous application which was described in the course of the hearing as an application for clarification.”
Moreover, the court clarified that its previous order dated 14.12.2022, directing JVVNL to pay LPS to Adani Power, doesn’t hold any binding effect as it was passed at a prima facie stage and not during the hearing stage. Consequently, the application was dismissed, and a cost of Rs. 50,000/- was imposed on Adani Power, to be deposited with the Supreme Court Legal Aid Committee.
Background:
The 2020 judgment of the Supreme Court affirmed the decisions of the Rajasthan Electricity Regulatory Commission and the Appellate Tribunal for Electricity, stating that Adani Power was entitled to compensatory tariff but not to the Late Payment Surcharge (LPS). Adani Power, dissatisfied with the non-awarding of LPA, preferred a Miscellaneous Application before the Supreme Court, seeking the Late Payment Surcharge from JVVNL due to delays in receiving ‘change in law’ compensation mandated by the 2020 judgment.
Senior Advocate Dr. A.M. Singhvi represented Adani Power, arguing that the delay in receiving ‘change in law’ compensation justified its claim for LPS. On the other hand, Senior Advocate Dushyant Dave, assisted by Advocate Kartik Seth, disputed Dr. Singhvi’s argument on behalf of JVVNL, asserting that Adani Power wasn’t entitled to the alleged LPS, emphasizing the company’s failure to contest the issue before the courts previously.
In response to Dr. Singhvi’s offer to withdraw the application, Mr. Dave protested, terming it an abuse of process. The Bench, after considering the submissions, reserved its judgment on Adani Power’s miscellaneous application for a payment of Rs. 1376.35 crores as outstanding late payment surcharge from Rajasthan DISCOM on 24.01.2024.
Stay tuned for updates following the final verdict.
