Tag: Mahanadi Coalfields

Mere Use of Word “Arbitration” Doesn’t Bind Parties: Key Business Contract Lesson from Supreme Court
20Jan By The Legal ChamberNo Comments
Supreme Court

Mere Use of Word “Arbitration” Doesn’t Bind Parties: Key Business Contract Lesson from Supreme Court

The Supreme Court held that Clause 8.28 did not constitute a valid arbitration agreement under Section 7 of the Arbitration and Conciliation Act, 1996. The clause lacked essential attributes, such as finality and a binding decision by a neutral tribunal, as it ultimately permitted parties to seek remedies in civil courts if unresolved. Facts Of The Case: The appellant, M/s Alchemist Hospitals Ltd., entered into a Software Implementation Agreement with the respondent, M/s ICT Health Technology Services India Pvt. Ltd., on 1st November 2018 for upgrading its hospital-information software. Following implementation, the appellant alleged persistent technical failures and operational issues with the respondent's "HINAI Web Software," leading to the system being rolled back i...
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Supreme Court Upholds Ruling: Power Generators Must Share Coal Costs Fairly Among All Buyers
11Oct By The Legal ChamberNo Comments
Supreme Court

Supreme Court Upholds Ruling: Power Generators Must Share Coal Costs Fairly Among All Buyers

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...
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