In Brief
A power generating company withdrew from customs, excise and service tax exemptions after the Ministry revoked them in 2015–16, sought compensation under the Power Purchase Agreements' "change in law" clause (Article 13). The central question was whether the company could claim carrying costs (interest-like compensation) for the period between the date exemptions were withdrawn and the regulatory authority's approval. The Court held that Article 13.2 of the PPA contains an in-built restitutionary principle designed to restore the affected party to its original economic position. Since Article 13.4.1(i) requires tariff adjustments from the date of the change in law itself, carrying costs for the interim period are recoverable as contractual restitution, not as general equitable interest. The Court dismissed the appeals and upheld the regulatory tribunal's decision allowing carrying costs.
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