AIROnline 2025 SC 785

Supreme Court Of India

Hon'ble Judge(s): Sanjay Kumar, Satish Chandra Sharma , JJ

Electricity Act (36 of 2003) , S.125— Power purchase agreement - Encashment of bank guarantee - Legality of order to restore amount realised - Developer was selected for development of a solar photovoltaic power project and PPA was executed - Supply had not commenced within the agreed period and neither formal extension was obtained nor notice of Force Majeure was issued as required under PPA - Preconditions for invocation of article in PPA providing for encashment of bank guarantee in case of failure of Developer to commence supply by the Scheduled COD , were satisfied - Invocation of bank guarantee by Distribution Licensee was, a remedy specifically conferred by the contract - Jurisdiction of regulatory bodies does not extend to recasting the contractual framework by directing restitution of amount lawfully realised under the PPA - Order passed by State Commission and affirmed by APTEL for restoration of amount ,was set aside (Para 37 38 39 40 44) .....