Legal Blog - The Legal Chamber

The Supreme Court upheld the Appellate Tribunal for Electricity's (APTEL) ruling that a Coal India Limited (CIL) notification imposing Evacuation Facility Charges (EFC) constitutes a "change in law" event under the Power Purchase Agreement (PPA). The judgment affirmed that the power generator is entitled to compensation from the notification date with carrying cost at Late Payment Surcharge (LPS) rates on a compounding basis, based on restitutionary principles. The Court clarified that only a substantial question of law is appealable, and the supplementary bill is required only after due adjudication. Facts Of The Case: A Power Purchase Agreement (PPA) was signed on January 28, 2010, between Rajasthan Discoms and Adani Power Rajasthan Ltd. for 1200 MW. On December 19, 2017, Coal India ...

The Supreme Court quashed criminal proceedings under the UP Gangsters Act, emphasizing that a gang chart's approval requires independent application of mind by authorities and cannot be based solely on prior FIRs, especially without overt acts, violence, or economic gain. The judgment clarified the stringent conditions necessary for invoking the Act and upheld the importance of due process in such cases. Facts Of The Case: The case involved a criminal appeal against a High Court judgment that refused to quash proceedings initiated under the Uttar Pradesh Gangsters & Anti-Social Activities (Prevention) Act, 1986, against the appellant, Vinod Bihari Lal. The appellant was implicated in a "gang chart" based on previous FIRs. He sought to quash the proceedings and non-bailable warrants i...

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Supreme Court Late Payment Surcharge Valid: Coal India’s Levy Ruled as ‘Change in Law’