MAHARASHTRA STATE ELECTRICITY DISTRIBUTION COMPANY LIMITED vs MAHARASHTRA ELECTRICITY REGULATORY COMMISSION

The Supreme Court dismissed the appeal filed by Maharashtra State Electricity Distribution Company Ltd. against the Appellate Tribunal for Electricity's decision, which upheld the Maharashtra Electricity Regulatory Commission's order. The court ruled that the introduction of the Base Rate and Marginal Cost of Funds Based Lending Rate by the Reserve Bank of India did not constitute a 'Change in Law' under the Power Purchase Agreements, thus not warranting a change in the Late Payment Surcharge. The judgment reinforces the interpretation of contractual terms within the context of regulatory changes.