Supreme Court restrains Punjab from taking action against GVK Power

New Delhi, January 27

The Supreme Court on Thursday restrained the Punjab Government from taking any coercive action against GVK Power for two weeks.

The order came from a Bench led by Chief Justice of India NV Ramana on a petition filed by GVK Power challenging the decision of the Punjab State Power Corporation Ltd to terminate the power purchase agreement with it.

Asking GVK Power to approach the Punjab and Haryana High Court, the top court disposed of the matter.

On behalf of the petitioner, senior advocate Maninder Singh submitted that authorities were acting in a high-handed manner against the company despite knowing that the matter was listed before the Supreme Court.

“Is it fair to take coercive steps when the court is going to consider the matter? Why such high handedness?”, CJI asked senior counsel P Chidambaram who represented the Punjab Government.

The company had sought quashing of the October 29, 2021 default notice issued by Punjab State Power Corporation Ltd. at the behest of state government purporting to terminate the Amended power purchase agreement dated May 26, 2009 with GVK.