Approbation and Reprobation - The Legal Chamber

The Supreme Court held that a concluded compensation agreement voluntarily entered into under Section 7 of the Tamil Nadu Acquisition of Land for Industrial Purposes Act, 1997, is a final and binding contract. Such an agreement precludes parties from subsequently invoking statutory provisions, like Section 12 for interest, as the contract subsumes all related claims and disputes. Facts Of The Case: The case involved the acquisition of lands in Coimbatore District, initially leased to the Defence Department in 1942, for the expansion of Coimbatore Airport runway. Proceedings under the Tamil Nadu Acquisition of Land for Industrial Purposes Act, 1997 were initiated in 2011. In 2018, a meeting was convened under Section 7(2) of the Act between authorities and landowners, resulting in a...

The Supreme Court dismissed appeals against concurrent orders of CERC and APTEL. It upheld that coal linkage for a power plant is allocated to the project as a whole, not to specific PPAs. Consequently, the additional cost from 'Change in Law' events must be apportioned pro-rata among all power procurers based on their energy drawal. Facts Of The Case: GMR Kamalanga Energy Limited (GKEL) set up a power plant and entered into long-term Power Purchase Agreements (PPAs) with three utilities: Haryana, Odisha (GRIDCO), and Bihar. The project was allocated coal from specific linkages and a captive block, intended for the entire plant. When changes in law and a coal supply shortfall increased GKEL's costs, it sought compensation. The Central Electricity Regulatory Commission (CERC) ruled GKEL w...