AIR 2016 SUPREME COURT 4397 ::2016 (4) AKR 836 ::(2016) 2 CLR 964 (SC) ::(2016) 8 Scale 798 ::(2016) 3 CurCC 462 ::AIR 2016 SC (Civil) 3067 ::2016 (16) SCC 135 ::(2016) 6 AndhLD 140 ::(2017) 2 JCR 202 (SC) ::(2016) 119 All LR 910 ::(2016) 168 AllIndCas 209 (SC)

Supreme Court Of India

Hon'ble Judge(s): Anil R. Dave, L. Nageswara Rao , JJ

(A) Electricity Act (36 of 2003) , S.61— Power Purchase Agreement (PPA) - Termination - Default in payment - PPA stipulating that in case purchaser fails to clear dues within 30 days of receiving notice of default, agreement shall be terminated - Agreement also stipulating that any failure to perform financial obligation will be an event of default - Appellant defaulting in payment of tariff invoices - Failing to clear dues within time even after receiving default notice, failing to pay default interest and did not also open letter of credit as per PPA - Defence raised of non-grant of inter-connection approval, not valid defence as it was not a condition precedent for payment of tariff invoices - Termination of PPA, valid. (Para 15) (B) Electricity Act (36 of 2003) , S.61— Power Purchase Agreement - Default in payment of tariff by purchaser - Condonation of default - Supplier company despite service of notice of termination continuing to supply power to purchaser - Cannot be treated as condonation of default as supplier was refused open access and had in any case to supply electricity that was generated. Evidence Act (1 of 1872) , S.115— (Para 18) (C) Civil P.C. (5....