In Brief
Bangalore Electricity Supply Company (BESCOM) appealed against an appellate tribunal's decision upholding a solar power developer's claim to force majeure protection under their Power Purchase Agreement. The developer faced delays in obtaining government approvals for land conversion and grid connectivity but completed the project within an extended 24-month period that BESCOM had itself previously approved. The Court held that where government agencies cause delays in issuing statutory approvals and a developer exercises due diligence, the delay qualifies as force majeure under the PPA. The Court rejected BESCOM's attempt to backtrack after approving the extension, ruling it was estopped from taking a contrary stance. The tariff reduction was set aside and the appeal was dismissed, as no substantial question of law warranted appellate interference.
The lawyer headnote and full judgment text are available to registered users.