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Head Note

Civil Law  - Power Purchase Agreement

Contract - Payment - Power Purchase Agreement (PPA) - Compensatory tariff -Permission for payment - During pendency of appeal - A PPA is a contract between the parties and the terms of any contract are nothing but the agreed terms of the contracting parties -Parties to a contract can alter the terms of the contract subsequent to the formation of the contract by mutual consent - However, the rights of the State and its agencies and instrumentalities in the realm of contracts are circumscribed by the considerations of public interest - Apart from such general principle, the rights and obligations of the parties to the PPA in question are also subject to certain statutory prescriptions -Held that no direction can be given at this stage during the pendency of the appeal to pay the appellant compensatory tariff as the right of the appellant for such compensatory tariff appears to be one of the issues in the appeal -It requires no permission from the Court to pay compensatory tariff - It is up to the 2nd respondent to take a decision in accordance with law to the best of its understanding - Made clear that if the 2nd respondent chooses to make such payment, the same shall be subject to the result of the appeal.

Topic(s)-Contract - No direction for payment during pendency of appeal