The Supreme Court on Thursday gave Adani Power (Mundra) Ltd three weeks’ time to reply to a curative petition filed by the Gujarat Urja Vikas Nigam Ltd (GUVNL) against the top court’s July 2019 verdict upholding the termination of a Power Purchase Agreement (PPA) between the two.
A five-judge bench headed by Chief Justice of India N V Ramana also asked GUVNLA to file its rejoinder in two weeks after the Adani group submits its reply, after which the court will hear the matter again.
“The respondent (Adani Power Ltd) sought time to file a reply to the petition. Three weeks time has been given for filing the reply and two weeks thereafter for filing the rejoinder (by GUVNL). Put up for hearing on November 17,” ordered the bench, also comprising Justices U U Lalit, D Y Chandrachud, B R Gavai and Surya Kant.
The dispute emanates from a 2007 deal between the Adani firm and GUVNL according to which the former agreed to supply 1,000 MW power from its project located in Korba, Chhattisgarh. The Gujarat State Mineral Development Corporation (GMDC) was to supply coal to the Adani firm from the Naini coal block.
Adani terminated the pact citing non-supply of coal by Gujarat Mineral Development Corporation (GMDC), arguing that the supply of electricity was conditional upon the coal supply.
The PPA termination notice was challenged by the GUVNL before the Gujarat Electricity Regulatory Commission which had held the termination as illegal.
On appeal, a three-judge bench of the SC reversed the decision of the Commission and said the termination was valid as Adani was not getting the coal on time from GMDC.
A three-judge bench, in July 2019, had held that the termination of the PPA in 2009 was legal and valid. It had ordered the
Central Electricity Regulatory Commission (CERC) to determine compensatory tariff for the power supplied by Adani Power to the state PSU.
The verdict had said that the court should give effect to the “plain, literal and grammatical” meaning of the clauses used in a contract.