Q: Elaborate Coastal Gujarat Power Limited vs Central Electricity Regulatory on 27 April, 2021 ?
Ans: Coastal Gujarat Power Limited vs Central Electricity Regulatory on 27 April, 2021.
In this citation there was a project I.e ., Mundra mega ultra power project and the electricity was to be supplied to three states i.e Gujarat, Rajasthan and Haryana and both Tata and Adani chose non escalable tariff in the competitive bidding process. They had the long term fuel agreement with Indonesia Government in coal mines. But there was a sudden jolt when the prices of coal was risen by Indonesia Government as per their electricity regulatory laws to be benchmarked with the Internnational prices of coal but in power purchase agreement both Adani and Tata chose non escalable tariff.
The Supreme Court of India told that force majeure will not be imposed here because it is possible to complete the project here and the the laws of Indonesia will not be applicable here. It is viable to complete the project.
The honourable Supreme Court also told in Satyabrata Ghose vs Mugneeram Bangur & Co., And on 16 November, 1953 that to invoke section 56 of contract act, it is essential to measure physical or literal impossibility.
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