TUPPADAHALLI ENERGY INDIA PVT LTD vs KARNATAKA ELEC. REG. COMM.

The Supreme Court interpreted Clause 6.5 of the Power Purchase Agreement, affirming the views of the Karnataka Electricity Regulatory Commission (KERC) and the Appellate Tribunal for Electricity (APTEL) that it provides an incentive for prompt payment of monthly tariff invoices. The Court clarified that while Clause 6.2 allows for interest on delayed payments, Clause 6.5(v) specifically offers a rebate for timely payments. Consequently, the Court found no substantial question of law to exercise its powers under Section 125 of the Electricity Act, 2003, and dismissed the appeals.