In Brief
Sasan Power Limited sought compensation from six electricity distribution companies for increased power project costs, claiming changes in water intake location and customs duty on mining equipment amounted to changes in law under the Power Purchase Agreement. The Supreme Court held that neither claim constituted a valid change in law. The water intake system location change resulted from the project operator's own studies without procurer involvement; initial water linkage consents remained unchanged. Pre-bid reports carried explicit disclaimers requiring bidders to conduct independent verification. On customs duty, the respondent failed to prove mining equipment was exempt prior to the relevant cutoff date. The Court found the Tribunal exceeded its authority by awarding relief based on equity despite finding no change in law. Regulated contracts remain bound by express terms even when circumstances change. All appeals were allowed and the prior remand order was set aside.
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