VidhiSangh

Supreme Court of India · 27/08/2024

BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED versus HIREHALLI SOLAR POWER PROJECT LLP & OTHERS

[2024] 8 S.C.R. 1024 · 2024 INSC 631

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Summary

Appeals under Section 125 of the Electricity Act, 2003 lie only on a substantial question of law, and the Supreme Court should be restrained so that regulators and APTEL can develop sector law. APTEL's factual finding that delays in land conversion and evacuation approvals were not attributable to the solar developers, so force majeure under the PPA applied, raised no such question. Restoring the Rs. 8.40 tariff, setting aside liquidated damages and awarding late payment surcharge were upheld.

Issues

  1. What is the scope of the Supreme Court's appellate jurisdiction under Section 125 of the Electricity Act, 2003 over APTEL's decisions.
  2. Whether the delay in commissioning the solar projects was covered by the force majeure clause (Article 8.3) of the PPA, entitling the developers to an extension under Article 2.5 and protecting them from reduced tariff and liquidated damages.
  3. Whether the distribution company, having itself granted a six-month extension, could later dispute force majeure or rely on the absence of a written force majeure notice.
  4. Whether APTEL could award late payment surcharge on the tariff difference when it had not been specifically pleaded.

Provisions considered

Held

Result

Appeals dismissed and APTEL's order of 12.08.2021 upheld, including restoration of the Rs. 8.40 per unit tariff, payment of the difference with late payment surcharge, and the setting aside of liquidated damages. No order as to costs.

Judgment PDF: Supreme Court of India, [2024] 8 S.C.R. 1024.