ALL INDIA POWER ENGINEER FEDERATION vs SASAN POWER LTD. & ORS. ETC.

The Supreme Court addressed the interpretation of the Power Purchase Agreement (PPA) under the Electricity Act, 2003, specifically focusing on the conditions for declaring the Commercial Operation Date (COD) of a generating unit. The Court held that the COD for Unit No.3 was not achieved on 31.3.2013, as the necessary performance test had not been certified by an independent engineer, thus delaying the commencement of the tariff year. The judgment clarified the implications of Schedule 11 of the PPA regarding tariff rates based on the COD determination, emphasizing the importance of compliance with contractual pre-conditions.