The Supreme Court of India on Monday dismissed a miscellaneous application filed by Adani Power Rajasthan Ltd, now merged with Adani Power Ltd, seeking an outstanding late payment surcharge (LPS) of Rs 1,376.35 crores from Jaipur Vidyut Vitran Nigam Limited (JVVNL).
The court action comes amid the modified 2020 judgment concerning a power purchase agreement between the two parties.
Proper Legal Recourse Not Followed
The Bench comprising Justices Aniruddha Bose and Sanjay Kumar ruled that filing a miscellaneous application was not the appropriate legal course taken by Adani Power to claim the late payment surcharge. The court highlighted that the order passed in 2022 directing JVVNL to pay the LPS to Adani Power did not hold a binding effect, as it was merely a prima facie observation and not part of the hearing stage.
Imposition of Costs
As a result of the dismissal of the application, the Supreme Court levied a fine of Rs 50,000 on Adani Power, to be deposited with the Supreme Court Legal Aid Committee.
Background and Legal Context
The legal saga traces back from a 2020 judgment by the Supreme Court, which upheld the decisions of the Rajasthan Electricity Regulatory Commission and the Appellate Tribunal for Electricity.
This ruling stated that while Adani Power was entitled to a compensatory tariff, it was not eligible for the Late Payment Surcharge (LPS). Dissatisfied with this ruling, Adani Power pursued a miscellaneous application before the Supreme Court, seeking the LPS from JVVNL due to delays in receiving compensation mandated by the 2020 judgment.
Adani Power shares
The shares of Adani Power on Monday at 12:54 pm IST were at Rs 524.90, down by 1.04 per cent.
