| ASPECTS | DETAILS |
| Case Title | Bangalore Electricity Supply Company Limited vs. Hirehalli Solar Power Project LLP & Others |
| Introduction | The case states about the applicability of the force majeure clause in a Power Purchase Agreement (PPA) between BESCOM and Hirehalli Solar Power Project LLP. |
| Factual Background | The respondents faced delays in project completion due to governmental approval delays and other uncontrollable factors. They sought an extension under the PPA’s force majeure clause. |
| Legal Issues | Whether the extension of the Scheduled Commissioning Date (SCD) under the force majeure clause was justified, and whether the tariff reduction imposed by KERC was lawful. |
| Applicable Law |
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| Analysis | The Supreme Court analyzed whether the delay was attributable to the respondents or to external factors qualifying as force majeure, thus determining the validity of the tariff reduction and liquidated damages. |
| Conclusion | The Supreme Court upheld the APTEL’s decision, ruling that the delay was not attributable to the respondents and that the force majeure clause was applicable, overturning the tariff reduction and penalties. |
| Current Scenario | The case sets a precedent for the interpretation of force majeure in power projects, particularly regarding delays caused by governmental processes. |
CASE SUMMARY – In this case, the Supreme Court emphasized whether extending the Scheduled Commissioning Date (SCD) under the force majeure clause of the Power Purchase Agreement (PPA) justified the tariff reduction. The court upheld the Appellate Tribunal for Electricity’s (APTEL) decision that the delay was due to factors beyond the respondents’ control, such as government delays in approvals. However, the tariff reduction and imposition of liquidated damages by the Karnataka Electricity Regulatory Commission (KERC) were overturned.
SOURCE – SUPREME COURT OF INDIA
Supreme Court, Force Majeure, Tariff Reduction, Power Purchase Agreement, APTEL, KERC, Solar Power Project, Liquidated Damages
