Welcome back to Caseon!
Log in today and discover expertly curated legal audios and how our AI-powered, tailor-made responses can empower you to navigate the complexities of your case.
Stay ahead of the curve—don’t miss out on the insights that could transform your legal practice!
As per case facts, OPG Power Generation Pvt. Ltd. (Appellant) had a power supply agreement with Shree Karthik Papers Ltd. (Respondent). The Appellant unilaterally increased the power tariff, which the
...Respondent protested, citing no contractual provision for such an increase. Despite protests, the Appellant stopped power supply. The Appellant contended the stoppage was due to non-payment, but the tariff increase was deemed unilateral. The Respondent was forced to procure power at a higher rate and sought damages. An Arbitrator found the Appellant in breach and awarded damages, which was upheld by a Single Judge. The present Appeal challenged this decision. The question arose whether the Appellant was justified in stopping electricity supply and unilaterally increasing the tariff, or if its actions constituted a breach of contract. Finally, the Supreme Court ruled that both the arbitrator and the Single Judge correctly concluded the Appellant was the first to breach by unilaterally raising the tariff and stopping supply without following agreed procedures, even if there was a delayed payment. The Court dismissed the Appeal, finding no grounds to interfere with the lower judgments.
Bench
Applied Acts & Sections
Section 8
–The Arbitration And Conciliation Act, 1996
Section 34
–The Arbitration And Conciliation Act, 1996
Section 37
–The Arbitration And Conciliation Act, 1996
Source & Integrity Notice
This is a faithful reproduction of the official record from the e-Courts Services portal, extracted for research.
To ensure "Contextual Integrity," all AI insights must be cross-referenced with the official PDF,
which remains the sole authoritative version for judicial purposes.
This platform provides research aids, not legal advice; verify all content against the official Court Registry before legal use.
Legal Notes
Add a Note....