TUPPADAHALLI ENERGY INDIA PVT LTD Vs. KARNATAKA ELEC. REG. COMM. & ANR

Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 8736 of 2013, Judgment Date: Jan 10, 2017

                                                              NON-REPORTABLE

                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION


                        CIVIL APPEAL NO. 8736 OF 2013


TUPPADAHALLI ENERGY INDIA PVT LTD                               Appellant(s)

                                    VERSUS

KARNATAKA ELEC. REG. COMM. & ANR                               Respondent(s)

                                    WITH

                    CIVIL APPEAL NOs. 10290-10291 OF 2014


                               J U D G M E N T

KURIAN, J.
1.    On the interpretation of Clause 6.5 of the Power  Purchase  Agreement,
both  the  Karnataka  Electricity  Regulatory  Commission  (KERC)  and   the
Appellate Tribunal for Electricity (APTEL) have taken  a  view  that  it  is
actually an incentive for the prompt payment of the monthly tariff  invoice.
 Though Sh.S.Ganesh, learned senior counsel, persuasively submitted that  it
is only  a  one-time  expenditure  contemplated  under  the  Power  Purchase
Agreement, we too are unable to accept the contention.

2.    No doubt, there is a  provision  under  Clause  6.2  for  interest  on
belated payment, but Clause 6.5(v) is actually a rebate for  prompt  payment
of the monthly invoice. The view thus taken  by  the  KERC  and  the  APTEL,
being a plausible view, we do not find any substantial question  of  law  so
as  to  warrant  us  to  exercise  our  powers  under  Section  125  of  the
Electricity Act, 2003.

3.    The appeals are, accordingly, dismissed.
      No costs.
                                                   .......................J.
                                                           [ KURIAN JOSEPH ]


                                                   .......................J.
                                                        [ A. M. KHANWILKAR ]

      New Delhi;
      January 10, 2017.