GUJARAT URJA VIKAS NIGAM LTD. vs ESSAR POWER LIMITED

The Supreme Court, while adjudicating the appeal under Section 125 of the Electricity Act, 2003, held that the Appellate Tribunal for Electricity erred in interpreting the Power Purchase Agreement (PPA) dated 30th May, 1996. The Court established that the allocation of electricity must adhere to the agreed proportions of 300 MW to Gujarat Urja Vikas Nigam Ltd. and 215 MW to Essar Steel Ltd., as stipulated in the PPA. The Court set aside the Tribunal's order, thereby favoring the appellant's claim for compensation due to wrongful allocation of electricity.