Rithwik Energy Generation Pvt. Ltd. vs Bangalore Electricity Supply Co. Ltd. ...

The Supreme Court addressed the validity of a Power Purchase Agreement (PPA) under the Electricity Act, 2003, specifically examining the implications of non-approval by the State Commission as per Section 63. The Court held that the return of the PPA by the State Commission did not equate to rejection, thus maintaining the validity of the PPA. The Court further clarified that defaults in payment by Respondent No.1 could lead to termination of the PPA under Clause 9.3.2, establishing the principle that contractual obligations must be fulfilled to avoid termination.