{"id":273605,"date":"2022-09-13T10:30:20","date_gmt":"2022-09-13T05:00:20","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=273605"},"modified":"2022-09-13T10:30:20","modified_gmt":"2022-09-13T05:00:20","slug":"bombay-hc-issues-ad-interim-order-directing-cgpl-not-take-steps-invoke-letter-of-credit-issued-by-maharashtra-state-electricity-distribution-company-ltd-legal-updates","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/09\/13\/bombay-hc-issues-ad-interim-order-directing-cgpl-not-take-steps-invoke-letter-of-credit-issued-by-maharashtra-state-electricity-distribution-company-ltd-legal-updates\/","title":{"rendered":"Bombay HC issues an ad interim order directing CGPL to not take further steps to invoke the Letter of Credit issued by Maharashtra State Electricity Distribution Co. Ltd."},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"text-indent: 18pt;\">\n<p style=\"text-indent: 18pt; margin-bottom: 3%;\"><span style=\"font-weight: bold;\">Bombay High Court<\/span>: While deliberating upon the instant writ petition seeking temporary, time-limited relief so that the Letter of Credit is not further acted upon until MSEDCL has been able to move the Central Electricity Regulatory Commission, the Division Bench of G.S. Patel and Gauri Godse, JJ., issued an ad interim order directing the respondents to not take any steps to invoke the Letter of Credit in furtherance of the letter dated 29-08-2022 issued by the CGPL (Coastal Gujarat Power Ltd.)<\/p>\n<p style=\"text-indent: 18pt; margin-bottom: 3%;\">The dispute was regarding the Short-Term Open Access arrangement between the Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) and Coastal Gujarat Power Ltd. This is a Special Purpose Vehicle (SPV) established to implement and develop a 4000 M W ultra-mega project at Mundra, Kutch District, Gujarat. The Tata Power Company Ltd. (the 2<span style=\"vertical-align: super;\">nd<\/span> respondent) is the holding company of CGPL.<\/p>\n<p style=\"text-indent: 18pt; margin-bottom: 3%;\">It was stated by the petitioner&#8217;s counsels that there was a Letter of Credit for Rs 19.88 crores in favour of CGPL issued by MSEDCL. Due to the disputes between the parties, CGPL invoked the Letter of Credit on 29-08-2022. MSEDCL actually paid Rs 19.66 crores, though under protest to CGPL\/Tata Power on 30-08- 2022, one day after CGPL invoked the Letter of Credit.<\/p>\n<p style=\"text-indent: 18pt; margin-bottom: 3%;\">It was further stated by the petitioner that despite the afore-stated payment having admittedly and demonstrably being made, CGPL has not yet communicated to Canara Bank (which issued the Letter of Credit and also the 4th respondent) not to act further on the invocation.<\/p>\n<p style=\"text-indent: 18pt; margin-bottom: 3%;\">Upon perusal of the afore-stated facts, the Court pointed out that as of now it is not concerned with the disputes regarding the price of the power supply that have arisen vis-a-vis the power purchase agreement between MSEDCL and CGPL. The Court, however, noted that there is undoubtedly a payment made by MSEDCL to CGPL, although under protest, and that there is sufficient prima facie case to issue an ad interim order until 07-09-2022.<\/p>\n<p style=\"text-indent: 18pt; margin-bottom: 3%;\">The Court also directed that the concerned are to act on an authenticated copy of the order and the Canara Bank will not insist on a certified copy of this order.<\/p>\n<p style=\"text-indent: 18pt; margin-bottom: 3%;\">[<span style=\"font-weight: bold; color: #632423;\">Maharashtra State Electricity Distribution Company Ltd. v. Coastal Gujarat Power Ltd., <a href=\"http:\/\/www.scconline.com\/DocumentLink\/q5V3b8bY\">2022 SCC OnLine Bom 2048<\/a>, decided on 05-09-2022<\/span>]<\/p>\n<hr \/>\n<p>Advocates who appeared in this case :<\/p>\n<p style=\"text-indent: 18pt;\">Rafique Dada, Senior Advocate, with Deepa Chawan, Ravindra Chille &amp; Rahul Sinha i\/b DSK Legal, Advocates, for the Petitioner.<\/p>\n<hr \/>\n<p style=\"text-indent: 18pt;\"><strong><span style=\"color: #000080;\">*Sucheta Sarkar, Editorial Assistant has prepared this brief.<\/span><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bombay High Court: While deliberating upon the instant writ petition seeking temporary, time-limited relief so that the Letter of Credit is not <\/p>\n","protected":false},"author":67011,"featured_media":261881,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[2518,42724,51641,35268,51642,51216,51643],"class_list":["post-273605","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-Bombay_High_Court","tag-canara-bank","tag-cgpl","tag-letter-of-credit","tag-msedcl","tag-power-purchase-agreement","tag-power-supply"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bombay HC issues an ad interim order directing CGPL to not take further steps to invoke the Letter of Credit issued by Maharashtra State Electricity Distribution Co. 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(MSEDCL) was directed to pay the capacity charges and energy charges as per terms and conditions of the Power Purchase Agreement, APTEL asked MSEDCL to pay dues of Rs\u2026","rel":"","context":"In &quot;Tribunals\/Commissions\/Regulatory Bodies&quot;","block_context":{"text":"Tribunals\/Commissions\/Regulatory Bodies","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/tribunals_commissions_regulatorybodies\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":286691,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/03\/10\/explained-why-supreme-court-dismissed-appeal-filed-by-msedcl-and-passed-an-order-in-favour-of-adani-power-legal-news-legal-research-updates-change-in-law\/","url_meta":{"origin":273605,"position":1},"title":"Explained| Why Supreme Court dismissed MSEDCL&#8217;s appeal against compensation to Adani Power and GMR Warora Energy due to \u2018Change in Law\u2019?","author":"Editor","date":"March 10, 2023","format":false,"excerpt":"The Supreme Court upheld the judgement passed by the APTEL after observing that the generating companies were entitled to compensation so as to restore them to the same economic position, if the Change in Law had not occurred.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Adani","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/03\/MicrosoftTeams-image-699.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/03\/MicrosoftTeams-image-699.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/03\/MicrosoftTeams-image-699.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/03\/MicrosoftTeams-image-699.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":307462,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/11\/20\/explained-supreme-court-verdict-importance-interpreting-commercial-contracts-with-original-intent-parties\/","url_meta":{"origin":273605,"position":2},"title":"Explained| Supreme Court\u2019s verdict on importance of interpreting commercial contracts in line with the original intent of parties involved","author":"Apoorva","date":"November 20, 2023","format":false,"excerpt":"Supreme Court said that a deviation from the plain terms of the contract is warranted only when it serves business efficacy better","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"commercial contracts","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/11\/commercial-contracts.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/11\/commercial-contracts.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/11\/commercial-contracts.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/11\/commercial-contracts.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":277885,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/11\/22\/bombay-high-court-grants-interim-relief-to-marriage-hall-owner-despite-failure-to-comply-with-pollution-control-board-directions-legal-news-legall-research\/","url_meta":{"origin":273605,"position":3},"title":"Denying interim relief will cause trauma to people who pre-booked the hall; Bombay High Court grants relief to marriage hall owner despite his failure to comply with Maharashtra Pollution Control Board\u2019s directions","author":"Editor","date":"November 22, 2022","format":false,"excerpt":"\u00a0 \u00a0 Bombay High Court: Invoking its equity jurisdiction, the Division Bench of Sunil B. 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Pansare, JJ., granted interim relief to a marriage hall owner and restrained the authorities from shutting down the marriage hall, despite the hall owners\u2019 lackadaisical attitude in complying with the directions\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Bombay High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":262220,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/02\/22\/bom-hc-%e2%94%82-subject-order-suffers-from-an-error-which-is-apparent-on-the-face-of-the-record-parties-to-maintain-status-quo\/","url_meta":{"origin":273605,"position":4},"title":"MEP Infra v. 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