Rithwik Energy Generation Pvt. Ltd. v. Bangalore Electricity Supply Co. Ltd. & Ors. etc.
Electricity – PPA – Termination for default
Case brief
What is this about?
Supreme Court of India, Civil Appeal Nos. 5084-5085 of 2015 (decided 06.02.2018; R.F. Nariman and Navin Sinha JJ.): validity of termination of a Power Purchase Agreement for purchaser default; two-fold requirements of a default notice under Clause 9.3.2 (specify default in reasonable detail plus call to remedy within 30 days); 'substantial compliance' argument rejected; res judicata, collateral findings and subsequent events on appeal; estoppel of a party who invited the tribunal to adjudicate later facts; open access sale of power to third parties; Appellate Tribunal for Electricity and State Commission orders upheld; appeals dismissed.
What did the court decide?
Once a Court or Tribunal decides to look into a subsequent event at the behest of any of the parties, it does so because the Court itself considers it important to do so, otherwise it would not look into such subsequent event.