VidhiSangh

Supreme Court of India · 02/02/2022

SOUTHERN POWER DISTRIBUTION POWER COMPANY LIMITED OF ANDHRA PRADESH (APSPDCL) & ANR. versus M/S HINDUJA NATIONAL POWER CORPORATION LIMITED & ANR

[2022] 8 S.C.R. 198 · 2022 INSC 136

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

DISCOMs sought to withdraw their power-purchase approval application after final hearing, thereby also ending the generator’s tariff proceeding. The Court upheld APTEL’s direction to decide both applications on merits. The DISCOMs’ reversal after inducing the generator’s reliance was arbitrary and constituted legal malice. Final capital cost, tariff and approval remained with the regulator. The appeal was dismissed with Rs.5 lakh costs, six months to decide, and immediate interim purchases at Rs.3.82 per unit.

Issues

  1. Whether DISCOMs could withdraw the approval proceeding in these circumstances and thereby defeat the generator’s tariff application.
  2. Whether regulatory-approval requirements or disputed capital cost justified ending the proceedings.
  3. Whether the State instrumentalities’ change of position and failure to follow interim orders were permissible.

Provisions considered

Held

Result

Appeal dismissed with Rs.5 lakh costs. Commission to decide both applications on merits within six months; DISCOMs to resume power purchases forthwith at interim Rs.3.82 per unit until then. Final regulatory approval, cost and tariff remain for determination.

Judgment PDF: Supreme Court of India, [2022] 8 S.C.R. 198.