SC Dismisses Adani Power's Rs 1,300 Cr Plea For Late Payment Surcharge
The Supreme Court has dismissed a plea by Adani Power Rajasthan Ltd (APRL) seeking over Rs 1,300 crore as late payment surcharge (LPS) from Jaipur Vidyut Vitran Nigam Limited, a Rajasthan government-owned power distribution firm.
The bench, consisting of Justices Aniruddha Bose and Sanjay Kumar, deemed the filing of a miscellaneous application as an inappropriate legal recourse for the late payment surcharge.
The court imposed a penalty of Rs 50,000 on APRL for filing the application, highlighting that such relief could not be sought through a miscellaneous application. The bench highlighted that the applicant had not pursued a review of the main judgment and failed to establish willful disobedience of the main judgment regarding non-payment of LPS.
The Adani firm's claim for LPS was based on difficulties in procuring domestic coal as per the terms of the Power Purchase Agreement (PPA) with the Rajasthan discom. The court had previously upheld the orders of regulatory bodies, asserting that the Adani firm was entitled to compensatory tariffs but not to the LPS as claimed.
The ruling highlights the importance of adhering to proper legal procedures and the limitations on seeking relief through miscellaneous applications after a matter has been disposed of.
The court's decision comes after it reserved judgment on 24 January and after vehement opposition from Jaipur Vidyut Vitran Nigam Limited, represented by senior advocate Dushyant Dave. The Adani firm's plea for modification of a three-judge bench verdict delivered in August 2020 was also in the spotlight after the apex court criticised its registry for not listing the case for unspecified reasons despite a judicial order to post it.
