2017 (1) TMI 1781 - SC - Indian Laws

Incentive for the prompt payment of the monthly tariff invoice - one-time expenditure contemplated under the Power Purchase Agreement, or otherwise - HELD THAT - No doubt, there is a provision under Clause 6.2 for interest on belated payment, but Clause 6.5(v) is actually a rebate for prompt payment of the monthly invoice. The view thus taken by the KERC and the APTEL, being a plausible view, there are no substantial question of law so as to warrant us to exercise our powers under Section 125 of the Electricity Act, 2003. Appeal dismissed.

Summary

The Supreme Court upheld the interpretation of Clause 6.5 of the Power Purchase Agreement as an incentive for prompt payment of monthly tariff invoices. The Court dismissed the appeals, stating that there was no substantial question of law to warrant further action.