The bench of Justices M M Sundresh and Aravind Kumar, however, refused to stay the Himachal Pradesh High Court order overturning a single-bench’s decision.
The single judge had directed the state government to refund Rs 280 crore to Adani Power, stating that the arrangements made by the Netherlands’ Brakel Corporation with Adani Power violated the tender conditions and the Hydro Power Policy. The division bench of the Himachal Pradesh High Court had set aside this order, ruling in favour of the state government. Adani Power had then challenged this order in the Supreme Court.
“Since the amount in question was deposited after legal proceedings had been initiated in court, therefore, investment, if any, made during the pendency of legal proceedings was at their own risk and peril; therefore, Brakel could not claim any equity in its favour,” the division bench of the High Court said.
The court said that Adani Power’s financial arrangement with Brakel Corporation did not have the required approval from the state government and that Brakel’s misrepresentation and procedural errors, as well as Adani Power’s knowledge of the ongoing legal issues, together nullified their right to compensation.
In 2005, the Himachal Pradesh government had invited global bids for two hydropower projects—Jangi Thopan and Thopan Powari, of 480 MW each, and Brakel Corporation NV was the highest bidder in 2006.
After Brakel failed to deposit the premium upfront within the timeframe, Reliance Infrastructure Ltd, which was reportedly the second-highest bidder, offered to match the Dutch company’s bid.
Meanwhile, Adani Power, which was a consortium partner with Brakel Corporation in the project, deposited Rs 280 crore premium. Reliance had then moved the High Court seeking cancellation of allotment of both projects to Brakel.
The High Court had in 2009 cancelled both projects and told the state to invite fresh bids and allot the projects as per the old tender.
The state government had in 2014 sought Rs 2,700 crore in damages from Brakel for delay in implementation of the projects.
First Published: Sep 02 2024 | 7:14 PM IST