In Brief
A generating company with a Power Purchase Agreement (PPA) with Bangalore Electricity Supply Company (BESCOM) sought to terminate the agreement after sending a letter listing alleged payment defaults by BESCOM. The Supreme Court held that the letter did not constitute a valid default notice under Clause 9.3.2 of the PPA because it failed to explicitly call upon BESCOM to remedy the defaults within the mandatory 30-day period. Both components of a default notice—identifying the default and demanding remedy within 30 days—are mandatory; substantial compliance is insufficient. The Court affirmed orders invalidating the termination and dismissed the appeal.
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