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Synopsis

Supreme Court has pulled up the public sector Punjab State Power Corporation Ltd for "raking up" again and again disputes related to payment of monthly dues to private firm L&T-run Nabha Power Limited Rajpura, and Talwandi Sabo Power Plant under a power purchase agreement.

A bench of Justices Sanjay Kishan Kaul, Sudhanshu Dhulia and Aravind Kumar has accordingly directed the respondent state company to pay Rs 40 lakh to Nabha Power Limited and Rs 25 lakh to Talwandi Sabo Power Limited as cost.

Court said the cost must be imposed, more so where one party repeatedly sought to evade the rigors of the orders passed previously.

"This kind of endeavour can neither be appreciated nor left without consequences thereof. The dispute inter se the parties is in the nature of a contractual dispute. Normally, costs must go with the succeeding party in case of a contractual dispute," the bench added.

It was found that a previous judgment of October 05, 2017 itself dealt with the legal principles for interpretation of commercial contract exhaustively and those principles were then applied to the contract in question.

"We, thus, feel that some example must be set in such cases and the appeals are liable to be allowed with costs, which were actually incurred by the appellants," the bench said.

Court had called upon the parties to file the actual bill of costs. Nabha Power Limited stated multiple counsel appeared for it and the total invoice amount is Rs 1,95,80,081 while Talwandi Sabo Power Limited stated the total invoice amount for it is Rs 1,67,40,563.

It pointed out the respondent sought to reopen the issue under the guise of liberty granted to it.

"When we examined the issue, we find the same thing being raked up again and again only as an endeavour to not make payments, till in the Contempt proceedings they were compelled to make payment. The liberty granted by the order dated 09.03.2021 cannot be construed to seek refund of the amount paid under the orders passed by this Court from time to time," the bench said.

In July, 2021, the respondent filed a plea before the regulatory commission seeking, inter alia, directions against the appellant seeking due and correct accounts and details of washing of coal; coal quality reports etc, refund of principal amount of Rs 386.80 crores; and late payment surcharge.

The appellant filed a preliminary objection against the maintainability of the petition and sought its dismissal. However, an order on April 06, 2022 was passed, stating that the petition filed by the respondent was maintainable as they amounted to fresh disputes as per the order of March 09, 2021. 

Case Title: NABHA POWER LIMITED vs. PUNJAB STATE POWER CORPORATION LIMITED