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Tuesday: Supreme court closed the proceedings for the judgment of 2019 which had terminated the power purchase agreement (PPA); signed between Adani group of companies and Gujrat Urja Vikas Nigam (GUVNL).
As per the 2019 judgment recorded in court Adani Group was entitled to receive more than 10,000 crore rupees for compensation for electricity supplied to GUVNL. In the statement, the supreme court also asked Central Electricity Regulatory Commission (CERC) to set the rate for compensation.
The dispute dates back to 2010 when GERC said that Adani Power had illegally terminated the PPA that they had signed with GUVNL. This was later upheld by the Appellate Tribunal for Electricity leading the Adani Power to move to the supreme court.
In yesterday’s verdict a five-judge bench, headed by Chief Justice of India NV Ramana presented for disposing of the petition in terms of the agreement of the two companies.
A bench which includes Uday U Lalit, Dhananjaya Y Chandrachud, Surya Kant, and BR Gavai recorded in the statement “ In terms of the settlement that has taken place, we dispose of the curative petition saying that the parties shall be governed by the settlement earned by both the parties,”.
Attorney General KK Venugopal who is representing GUVNL told in court that according to the settlement deed the 2007 agreement shall stand revised.
Advocate Mahesh Agarwal appearing on behalf of Adani Power requested the court to cancel the curative petition where the company has to supply 2000 MW of energy according to the agreement.
This decision has been taken by the apex court after despite repeated reminders to the Gujarat government, GUVNL and GMDC, the coal supply did not begin. Adani Power stated in the last statement that it was forced to terminate the agreement because the supply of power was given under the assurance of GMDC.