Supreme Court Dismisses Adani Power's Plea Seeking Rs. 1376.35 Crores Late Payment Surcharge From JVVNL, Imposes Rs 50K Cost

The Supreme Court on Monday (March 18) dismissed a Miscellaneous Application filed by Adani Power Ltd seeking payment of Rs. 1376.35 crores as an outstanding Late Payment Surcharge (LPS) from Jaipur Vidyut Vitran Nigam Limited (JVVNL) after modifying a 2020 judgment.

The Bench Comprising Justices Aniruddha Bose and Sanjay Kumar held that the filing of a miscellaneous application is not the proper legal recourse adopted by the Applicant/Adani Power to claim LPS.

"The miscellaneous application is not the proper legal course to make the demand on that count. Relief of this nature cannot be asked or in a miscellaneous application which was described in the course of the hearing as an application for clarification.", Justice Aniruddha Bose said while reading out the operative part of the Judgment.

The court clarified that the order dated 14.12.2022 passed by the Supreme Court asking Jaipur Vidyut Vitran Nigam Limited (JVVNL) to pay LPS to Adani Power wouldn't have any binding effect as such observation was passed at the prima facie stage and not at the hearing stage.

"The order of this court doesn't reflect the issue of maintainability of the present application. It also doesn't appear to us that the maintainability issue was raised at that stage", the court said.

The application was accordingly dismissed with a cost of Rs. 50,000/- imposed on Adani Power to be deposited with the Supreme Court Legal Aid Committee.

Background

The 2020 judgment of the Supreme Court upheld the decisions of the Rajasthan Electricity Regulatory Commission and the Appellate Tribunal for Electricity, stating that Adani Power was entitled to a compensatory tariff but not to the Late Payment Surcharge (“LPS”).

Against the non-awarding of LPA, Adani Power preferred a Miscellaneous Application before the Supreme Court seeking the Late Payment Surcharge from the Jaipur Vidyut Vitran Nigam Limited (JVVNL) on account of delay in receiving 'change in law' compensation, mandated by the 2020 judgment.

Senior Advocate Dr. A.M. Singhvi represented the Applicant/Adani Power before the Supreme Court and stated that the delay in receiving 'change in law' compensation, mandated by the 2020 judgment, justified its claim for LPS.

Senior Advocate Dushyant Dave assisted by Advocate Kartik Seth, disputed Dr. Singhvi's argument on behalf of the JVVNL, arguing that Adani Power is not entitled to the alleged LPS. He emphasized Adani Power's adherence to court orders and insisted that the top court had resolved the LPS issue. Dave contended that the miscellaneous application in question was 'mischievous' and a clear example of suppressio veri suggestio falsi, highlighting, in particular, the power company's failure to submit a review against the 2020 verdict. The late payment surcharge was never contested before the Supreme Court or lower courts, Dave further claimed.

In light of the opposition voiced by Mr. Dave over the submission of the miscellaneous application, Dr. Singhvi volunteered to withdraw Adani Power's application. Against this, Mr. Dave protested by terming such an exercise as an abuse of process.

"That's an abuse of process. Allowing them to withdraw their petition would not be in the public interest. 1400 crores of rupees is sought to be extracted from the state. They just wanted to grab another order from this court...That's why they have taken this shortcut.", Mr. Dave said.

Based on the submission made by both parties, the Bench comprising Justices Aniruddha Bose and Sanjay Kumar reserved its judgment on Adani Power's miscellaneous application for a payment of Rs. 1376.35 crores as outstanding late payment surcharge (LPS) from Rajasthan DISCOM on 24.01.2024.

Previously, the Court had pulled up the Registry officials for not listing this matter despite a judicial direction.

The story to be updated after the final verdict is out.

Dushyant Dave, Sr Adv along with Kartik Seth Advocate appeared for JVVNL

Case Title: JAIPUR VIDYUT VITRAN NIGAM LTD. VS. ADANI POWER RAJASTHAN LTD., Diary No. 21994/2022

Citation : 2024 LiveLaw (SC) 241

Click here to read the judgment