In Brief
Two power companies, Nabha Power Ltd and Talwandi Sabo Power Ltd, claimed they were entitled to deemed export benefits under India's Foreign Trade Policy that were allegedly withdrawn after their bid submission, and sought compensation under a "Change in Law" clause in their power purchase agreements. The Supreme Court dismissed their appeals, holding that: (1) a Press Release announcing Cabinet decisions does not constitute "law" under the contracts—only official notifications qualify; (2) thermal power plants, being immovable assets assembled on-site, do not qualify as "goods" under trade law; and (3) the companies failed to meet all five essential conditions for deemed export eligibility, including using proper competitive bidding for goods procurement. Since no benefits were ever owed, withdrawal could trigger no compensation claim.
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