SC asks Adani Power to respond on curative plea of GUVNL against PPA termination

New Delhi [India], September 30 : The Supreme Court on Thursday asked Adani Power (Mundra) Ltd to file its response to a curative petition filed by Gujarat Urja Vikas Nigam Ltd (GUVNL) challenging a 2019 verdict of the top court which had upheld the termination of a Power Purchase Agreement (PPA) by Adani Power.
A five-judge Constitution Bench of Chief Justice of India NV Ramana, Justices UU Lalit, DY Chandrachud, BR Gavai and Surya Kant asked the private firm to respond to the plea within three weeks.
In a rare open court hearing of a curative plea in a commercial dispute, the Bench said it will hear the matter next on November 17 after counsels appearing for Adani Power sought time to file a reply.
"Senior counsel appearing on behalf of respondent No.1 (Adani Power) prays for and is granted three weeks time to file reply affidavit. Rejoinder affidavit, if any, be filed within two weeks thereafter. List the matter on November 17, 2021, for final disposal," the Bench stated in its order.
Senior advocates Harish Salve and Mukul Rohatgi appeared for Adani Power.
On the last hearing, the Bench had issued notices on the curative petition filed by GUVNL after noting that the plea raises significant questions of law.
In its September 16 order, it had noted, "We have gone through the curative petition and the relevant documents. In our prima facie opinion, there are substantial questions of law raised in this curative petition, which require consideration."
A curative petition is the final legal remedy available to a litigant after the dismissal of the main petition and the review petition.
By its July 2019 judgment, a three-judge bench had underlined that Adani Power was justified in terminating the PPA since it could not get coal supply on time from the Naini block of Gujarat Mineral Development Corporation (GMDC).
It had ordered the Central Electricity Regulatory Commission (CERC) to determine compensatory tariff for the power supplied by Adani Power to the state PSU.
Adani Power (Mundra) Ltd had signed a PPA with GUVNL in 2007 to supply 1,000 MW power from its project located in Korba, Chhattisgarh. In 2009, the private firm terminated the pact citing non-coal supply by Gujarat Mineral Development Corporation, claiming that the supply of electricity was conditional to coal supply.
In 2010, Gujarat Electricity Regulatory Commission (GERC) said Adani Power illegally terminated the PPA the latter had signed with GUVNL. The GERC's decision was later upheld by the Appellate Tribunal for Electricity, prompting Adani to approach the apex court. The top court had, however, reversed the findings.