UTTAR HARYANA BIJLI VITRAN NIGAM LTD.(UHBVNL) vs ADANI POWER LTD.

The Supreme Court addressed the issue of compensation for changes in law under Article 13 of Power Purchase Agreements (PPAs) in the context of the Electricity Act, 2003. The Court upheld the Central Electricity Regulatory Commission's (CERC) decision to grant compensation for increased costs due to the withdrawal of tax exemptions, affirming that such changes qualify as 'Change in Law' under the PPAs. The Court emphasized that the respondent is entitled to reimbursement of duties and taxes imposed after the exemption withdrawal, ensuring they are restored to their economic position prior to the change.