Muristek
Supreme Court approves out-of-court settlement between Adani Power and GUVNL
New Delhi, February 8
Taking note of a settlement reached between Adani Power (Mundra) Ltd and Gujarat Urja Vikas Nigam Ltd (GUVNL), the Supreme Court on Tuesday closed the curative plea of the state PSU challenging the apex court's 2019 verdict upholding the private firm's termination of a power purchase agreement (PPA).
On behalf of GUVNL, Attorney General KK Venugopal told a five-judge Constitution Bench headed by Chief Justice of NV Ramana that a settlement has been reached between the state PSU and Adani Power (Mundra) Ltd on January 3. In view of the settlement, the curative petition should be disposed of and the verdict may be modified accordingly.
The Bench — which also included Justices UU Lalit, DY Chandrachud, BR Gavai and Surya Kant — said it would close the case by recording that both the parties will be governed by the settlement agreement. The counsel for Adani Power supported it and said it would resume supplying 2000 MW electricity to GUVNL as per the settlement.
On September 17, 2021, the Bench had decided to hear in an open court the GUVNL's curative petition which, as per industry estimates, was to pay nearly Rs 11,000 crore compensation to Adani Power.