RADHEY SHYAM vs STATE OF U.P. & ORS.

The Supreme Court ruled on the validity of the Power Purchase Agreement (PPA) between Mangalore Electricity Supply Company Ltd. and M/s. AMR Power Private Ltd., emphasizing that the PPA remains enforceable despite disputes over tariff rates and defaults in payment. The Court held that the Karnataka Electricity Regulatory Commission's interim order mandating payment at the agreed rate of Rs. 2.80 per unit was valid, and the Appellant's obligations under the PPA must be fulfilled. The judgment clarified the enforceability of contractual terms under Article 19 of the Indian Constitution, affirming the rights of the power generator.