SC Slaps Rs 50K Cost On Adani Power, Rejects Plea Seeking Rs 1300 Cr From Rajasthan Discom

The Supreme Court on Monday dismissed a petition moved by Adani Power Rajasthan Ltd seeking over Rs 1,300 crore as late payment surcharge (LPS) from the Jaipur Vidyut Vitran Nigam Limited (JVVNL).

A bench comprising Justices Aniruddha Bose and PV Sanjay Kumar said that filing a miscellaneous application was not the proper legal recourse to LPS by the Adani firm.  

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The Supreme Court on Monday dismissed a petition moved by Adani Power Rajasthan Ltd seeking over Rs 1,300 crore as late payment surcharge (LPS) from the Jaipur Vidyut Vitran Nigam Limited (JVVNL). The top court slapped a cost of Rs 50,000 on Adani Power Rajasthan Ltd (APRL) for filing the miscellaneous application (MA).

A bench comprising Justices Aniruddha Bose and PV Sanjay Kumar said that filing a miscellaneous application was not the proper legal recourse to LPS by the Adani firm.  

JVVNL is a power distribution firm owned by the Rajasthan government.

The bench observed that a relief of this nature cannot be sought through a miscellaneous application which was described in the course of the hearing as an application for clarification.

While dictating order the bench said, "we have examined the issue in greater detail. The applicant after the three-judge decision was delivered did not file any petition for review, but the discoms reviews were dismissed." 

The bench however said that the order of this court "does not reflect anything on maintainability nor does it appear to have been raised then...we accordingly dismiss the MA and impose a cost of Rs 50,000 to be remitted to the Supreme Court legal aid committee."

The cost of Rs 50,000 that will be recovered from Adani's firm will be deposited with the Supreme Court Legal Aid Committee, Justice Bose said while reading out the judgment.

On January 24, the apex court had reserved its verdict in this case.

The case made headlines after the Supreme Court pulled up its registry for not listing the case for unspecified reasons despite a judicial order to post it. Senior Advocate Dushyant Dave who appeared for the state discom in the court asked the bench to pass a judicial order directing registry to list the case. Following Dave's submission the bench passed an order directing the registry to list the case before it. And subsequently the case was listed for January 24.

The Adani firm had moved the top court seeking modification of an August, 2020 verdict by a three-judge bench of the apex court that ruled that the Adani firm can claim compensatory tariff but not to the LPS.

The Adani Power Rajasthan Ltd had claimed a payment of Rs 1376.35 crore as the outstanding LPS since June 30, 2022 in terms of the power purchase agreement.