Adani Power gives up Rs.11,000 crore claim to settle Gujarat PPA dispute
The Supreme Court on Tuesday accepted the compromise reached between Adani Power (Mundra) Ltd and Gujarat Urja Vikas Nigam Ltd (GUVNL), over the supply of electricity.
Adani Power has waived compensation claim for an estimated Rs.11,000 crore to reach a settlement with Gujarat Urja Vikas Nigam Ltd in a dispute over termination of a February 2007 power purchase agreement (PPA) for supplying 1,000 MW electricity.
A five-judge bench headed by Chief Justice N V Ramana said: “In view of settlement deed, we dispose of the curative petition, by saying that both parties will be governed by the compromise”.
On September 30, last year, the top court asked Adani Power (Mundra) Ltd to respond to a curative plea by GUVNL challenging its 2019 judgment which had upheld the private firm’s termination of a pact with the state PSU.
The two entities have filed a joint petition in the Supreme Court (SC) seeking dismissal of a curative petition filed by the Gujarat power utility against the apex court’s July 2019 judgment upholding Adani Power’s termination of the PPA as legal and ordering GUVNL to compensate the company for the power it supplied from alternative source.
In a settlement, the private firm waived off its nearly Rs.11,000 crore dues with the state PSU in a dispute over the termination of the February 2007, power purchase agreement for supplying 1000 MW electricity. The private firm has agreed to keep supplying power to the state PSU.
At the outset, Attorney General K K Venugopal submitted before the bench that parties have settled the problem and there was a claim of over Rs.10,000 crore compensation and it now stands withdrawn. The AG urged the top court to record the settlement in the matter. The bench, also comprising Justices U U Lalit, D Y Chandrachud, B R Gavai, and Surya Kant queried the law officer, how to interfere in the judgment?
The counsel for Adani submitted that curative petition can be disposed of on the terms of the settlement reached between the parties, and the firm will continue to supply power.
The Chief Justice queried that once the court has taken up the curative and doesn’t interfere in the judgment than how can it modify the judgment. He added, “You want it to be disposed of based on settlement?”
The AG urged the bench to take on record affidavits by both parties in the matter. Justice Lalit suggested that the court can record that the relationship between the parties will be governed by the compromise. Justice Kant agreed with Justice Lalit’s suggestion in the matter.
The AG submitted that the court can invoke Article 142 and put an end to the dispute.
Justice Lalit said that parties have entered into a compromise and the court can dispose of settlement in terms of the settlement which was filed by signatures of competent persons. “We proceed that both parties have now entered into the settlement”, he added.
[With Inputs from IANS]
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