Advocate General Anoop Kumar Rattan Comments on Major Relief for Sukhu Government as HC Overturns ₹280 Crore Order Against Adani Group
HC Overturns Order; Advocate General Anoop Kumar Ratan Comments on Major Relief for Sukhu Government
A division bench of the Himachal Pradesh High Court overturned a single bench’s decision on Thursday, which had ordered Adani Power Limited to return ₹280 crore in premium.
This decision has provided significant relief to the Sukhu government of Himachal Pradesh.
The division bench, comprising Justice Vivek Singh Thakur and Justice Bipin Chandra Negi, delivered the verdict while hearing the petition filed by the Himachal Pradesh government against the single bench’s decision in 2022.
Providing relief to the state government led by Chief Minister Sukhwinder Singh Sukhu, the division bench of the Himachal High Court overturned the single bench’s ruling. In 2022, the single bench had directed Adani Power Limited to return ₹280 crore in premium related to the 969 MW Jangi Thopan Power Hydroelectric Project in Kinnaur district.
The division bench stated that the Adani Group is not entitled to this amount.
Himachal Pradesh’s Advocate General Anoop Kumar Rattan said that the division bench of the High Court on Thursday nullified the single bench’s order, which had instructed the state government to make a premium payment of ₹280 crore to Adani Power Limited. “We challenged the single bench’s order before the division bench, which ruled in favor of the state government,” he said.
The Advocate General also mentioned that the division bench noted in its judgment that incorrect facts were presented to the state government to acquire the project.
The ruling stated that the Adani Group invested in the project through the back door, which was against the terms of the project agreement.
Therefore, the Adani Group will not be refunded the premium amount. The government had signed a project agreement (MoU) with the Brakel company, but the company fraudulently acquired the project using forged documents, which was found to be against the agreement.
Subsequently, without the government’s consent, Brakel made Adani Group a member of the project. Thus, Brakel company is also not entitled to the premium amount.
Adani Power Limited had demanded compensation from the state government under sections 65 and 70 of the Indian Contract Act. The court found that there was no legal relationship between Adani and the state, which is necessary for such claims under section 70. The court emphasized that Adani’s transactions with Brakel regarding the payment did not establish a basis for compensation from the state. The court acknowledged that Brakel and the Adani Group were equally at fault, invalidating any claims for compensation under section 65.
In 2019, Adani Power had filed a writ petition seeking the return of ₹280.06 crore, including interest, citing payments made by Brakel Corporation for two hydroelectric projects in Kinnaur district. The 969 MW project was awarded to Brakel in 2007, but the company declared bankruptcy and did not deposit the advance premium.
The project was subsequently handed over to the Adani Group. Adani Group demanded a refund of ₹280.06 crore, including interest, for the advance premium. Later, the project’s tender was canceled.