The Supreme Court on Monday refused to entertain an Adani Power application seeking a late payment surcharge (LPS) of over ₹1300 crore from Rajasthan distribution companies (discoms). It slapped a ₹50,000 fine on the company for moving an application for clarification instead of a review petition two years after a judgment of the court settled the issue in August 2020.
A bench of justices Aniruddha Bose and Sanjay Kumar said miscellaneous application was not the proper legal recourse. “A relief of this nature cannot be asked in an application seeking clarification...We dismiss the application with a cost of ₹50,000 to be paid to Supreme Court Legal Service Authority.”
Jaipur Vidyut Vitran Nigam Limited (JVVNL)-led discoms raised suspicion over the listing of the matter, seeking a clarification on payment of LPS as decided in August 2020.
The Adani Power application sought a further payment of ₹1,376.35 crore from JVVNL arguing compensation for a change in law and carrying cost was decided in the August 2020 judgment. It argued this was distinct from LPS under the power purchase agreement (PPA) signed with JVVNL in January 2010.
The court noted that Adani Power did not file any review petition against the judgment. The only review petition of Rajasthan discoms was dismissed in March 2021.
{{/usCountry}}The court noted that Adani Power did not file any review petition against the judgment. The only review petition of Rajasthan discoms was dismissed in March 2021.
{{/usCountry}}Adani Power, which was represented by senior advocate Abhishek Manu Singhvi, earlier expressed willingness to withdraw its application to allow it to approach the appropriate forum on electricity disputes.
Singhvi argued the August 2020 judgment granted carrying cost compensation as a measure of LPS but the company was entitled to this amount under PPA.