VidhiSangh

Supreme Court of India · 05/11/2024

NABHA POWER LIMITED & ANR. versus PUNJAB STATE POWER COROPORATION LIMITED & ANR.

[2024] 11 S.C.R. 445 · 2024 INSC 833

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Summary

The Supreme Court held that a Press Information Bureau release announcing the Union Cabinet's approval of modifications to the Mega Power Policy was not 'law' under the power purchase agreement and did not change the legal regime on its date. The change in law occurred only with the customs exemption notification of 11.12.2009 and the revised policy of 14.12.2009, after the bid cut-off date, so the resulting customs duty benefit had to be passed on to the procurer.

Issues

  1. Whether the press release of 01.10.2009 announcing the Union Cabinet's approval of modifications to the Mega Power Policy was 'law' within Clause 1.1 of the RFP/PPA.
  2. Whether the legal regime governing mega power status and customs duty exemption changed on 01.10.2009, before the cut-off date of 02.10.2009, or only on 11.12.2009/14.12.2009, so as to constitute a Change in Law under Article 13.1.1 of the PPA.
  3. Whether the business efficacy test, the RFP clauses on bidders' due diligence, or promissory estoppel assisted the generator.

Provisions considered

Held

Result

Appeal dismissed; the concurrent decisions of the State Commission and APTEL on the Mega Power Policy issue upheld. No order as to costs. The connected Foreign Trade Policy issue, pending in a separate civil appeal, was not decided.

Judgment PDF: Supreme Court of India, [2024] 11 S.C.R. 445.