Policy Of Inter-Plant Transfer Of Coal By Coal India A “Change In Law Event” : Supreme Court Grants Relief To Haryana Distribution Companies
Live LawOn 20.04.2023, the bench of Justices B.R. and Adani Power Ltd. wherein it has been held that “Inter Plant Transfer” of coal qualifies as a Change in Law Event in terms of the Power Purchase Agreements executed between the parties. While doing so, the Supreme Court has ruled in favour of Haryana Discoms and observed that the Coal India Limited Communication dated 19th June, 2013 is an instrument having “a force of law” and consequently allowed IPT of coal as a change in law event. The Supreme Court took a significantly view and overruled the decision of the Appellate Tribunal and held that “CIL is an instrumentality of the Government of India” and that the “APTEL erred in holding the said communication dated 19th June 2013 not to amount to ‘Change in Law”. The Supreme Court also noted that “the definition of “Law” is wide enough to include all rules, regulations, orders notification by the Government instrumentalities.” The Bench also noted that the Appellate Tribunal’s findings are in contradiction to its own decisions wherein vide Order dated 22.03.2022 in the matter of Rattan India Power Limited v. Maharashtra Electricity Regulatory Commission and Another, Appeal Nos.