Mangalore Electricity Supply Company ... vs M/S. Amr Power Pvt. Ltd. & Anr

The Supreme Court ruled that the Power Purchase Agreement (PPA) between Mangalore Electricity Supply Company Ltd. (MESCOM) and AMR Power Private Limited is valid and enforceable under the provisions of the Electricity Act, 2003, specifically Sections 61 and 86. The Court held that the regulatory authority's interim orders must be complied with, and the Appellant's failure to adhere to the PPA terms constituted a breach, justifying the First Respondent's termination of the agreement. The Court emphasized the importance of adhering to contractual obligations in the energy sector, thereby upholding the First Respondent's right to terminate the PPA due to defaults by the Appellant.