In Brief
Adani Power (Mundra) Ltd challenged a regulatory decision regarding its Power Purchase Agreement (PPA) with Gujarat's electricity authority. The central dispute was whether Article 3.4.2 of the PPA—the termination clause—could be invoked independently for non-compliance with conditions in Article 3.1.2, or only by mutual agreement. The Supreme Court held that Article 3.4.2, being specific, takes precedence over general Article 14 provisions and allows unilateral invocation upon non-compliance. The Court validated the termination and remitted the case for the electricity regulator to determine appropriate compensatory tariff owed to Adani Power from the termination date onwards.
The lawyer headnote and full judgment text are available to registered users.