The Supreme Court on Monday rejected a Miscellaneous Application filed by Adani Power Ltd, which sought payment of Rs. 1376.35 crores as an outstanding Late Payment Surcharge (LPS) from Jaipur Vidyut Vitran Nigam Limited (JVVNL). This decision came after modifying a 2020 judgment.
Justices Aniruddha Bose and Sanjay Kumar, the Bench presiding over the case, ruled that filing a miscellaneous application was not the appropriate legal recourse for Adani Power to claim LPS. They emphasized that such demands cannot be made through a miscellaneous application, which was described during the hearing as an application for clarification.
The court clarified that its order dated December 14, 2022, asking JVVNL to pay LPS to Adani Power, would not have any binding effect, as it was passed at a prima facie stage and not during the hearing. They noted that the issue of maintainability was not raised during that stage.
As a result, the application was dismissed, and Adani Power was directed to pay a cost of Rs. 50,000/- to the Supreme Court Legal Aid Committee.
Background:
In the 2020 judgment, the Supreme Court upheld Adani Power’s entitlement to a compensatory tariff but denied the Late Payment Surcharge (LPS). Dissatisfied with this decision, Adani Power filed a Miscellaneous Application seeking LPS from JVVNL. The application was contested by JVVNL, arguing that Adani Power was not entitled to LPS. Senior Advocate Dr. A.M. Singhvi represented Adani Power, while Senior Advocate Dushyant Dave, assisted by Advocate Kartik Seth, represented JVVNL.
During the proceedings, Mr. Dave criticized Adani Power’s application as “mischievous” and accused the company of trying to extract money from the state. Despite Dr. Singhvi’s offer to withdraw the application, Mr. Dave objected, considering it an abuse of process.
The Bench reserved its judgment on Adani Power’s application, and the final verdict is yet to be announced.
Previously, the Court had reprimanded Registry officials for not listing this matter despite judicial direction.
Please note that updates will be provided once the final verdict is issued.
[Case Title: Jaipur Vidyut Vitran Nigam Ltd. vs. Adani Power Rajasthan Ltd., Diary No. 21994/2022]
