In Brief
Karnataka Power Corporation was allotted coal mines by India's Union for its thermal power projects and formed a joint venture with EMTA Coal (KEMTA) for coal supply. After a CAG report quantified coal rejects at Rs. 52.37 crores, KPCL demanded reimbursement from KEMTA, despite having initially objected to the CAG's quantification. The High Court allowed KEMTA's challenge, holding that the contractual agreements did not authorize such deductions and directing reimbursement of amounts deducted from bills. The Supreme Court dismissed KPCL's appeal, finding no contractual basis for deductions, no quality complaints on record, and unjustifiable inconsistency in KPCL's position regarding the CAG report.
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