Nishka Srinivas Veluvali
Published On: February 09, 2022 at 21:09 IST
On Tuesday, 08 February, 2022, the Supreme Court ractified the out – of – Court settlement between Adani Power Ltd and Gujarat Urja Vikas Nigam.
In this settlement the private player is likely to renounce it’s compensation claim of approximately Rs. 11,000 crore and terminate its power purchase pact with the State Government.
The five Judge Bench of Chief Justice NV Ramana, Justice UU Lalit, Justice DY Chandrachud, Justice BR Gavai and Justice Surya Kant, at the outset bit hesitant to sanction the settlement in the situation where the dispute had already reached to the stage of Curative Petition following the Supreme Court’s July 02, 2019 ruling in favour of Adani and quashed the review Petition of the Gujarat Urja.
However, Attorney General KK Venugopal, representing the Gujarat Urja was successful to convince the Court stating that they should be barred from exercising their inherent powers as per the Article 142 and sought the Court to approve the out – of – Court settlement which is good for the interest of the State.
Advocate Mahesh Agrawal, appearing for the Adani Power, stated that, “The private power generator is agreeable to supply 2000MW power to the State undertaking immediately after the Court accepted the January 3 settlement between the parties. The Adani would also waive off the compensation claim”.
Upon hearing both the parties submissions, the Bench approved for the settlement and stated that, “ The parties would be governed by the terms and conditions of the settlement”.