In Brief
CLP (India) Pvt Ltd and Gujarat Urja Vikas Nigam Ltd (a state electricity board) had a power purchase agreement for 635 MW generation. Disputes arose over tariff incentive payments under a statutory notification and interest on a deemed loan component. The Court held that the amending tariff notification dated 06.11.1995 was binding on both parties and effectively prohibited the incentive payments. The Court upheld the three-year limitation period for recovery of excess payments. On interest claims for a deemed loan of ₹53.90 crores, the Court held that once parties contractually fixed the interest period (01.07.2003 to 31.12.2009), no claim for prior interest could be made. Both appeals by CLP and Gujarat Urja were dismissed."
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