M/S. Sagar Sugars & Allied Products Ltd vs Tranmission Corpn.,A.P. Ltd. & Ors

The Supreme Court upheld the Andhra Pradesh High Court's order allowing the appellant to supply power under the Power Purchase Agreement (PPA) despite the respondent's objections regarding the classification of the power plant. The Court emphasized the importance of adhering to the directives of the Andhra Pradesh Electricity Regulatory Commission (APERC) as per the Andhra Pradesh Electricity Reforms Act, 1998, specifically regarding the amendment of the PPA to accommodate surplus power. The Court ruled that the respondent must comply with the PPA terms and directed payment to the appellant at the revised rate of Rs.2.69 per unit.