Himachal High Court Grants Relief to State Government in Adani Power Case

In a significant decision, the High Court has provided relief to the state government in the case involving the return of Rs 280 crore along with interest to M/s Adani Power Limited. The court accepted the government’s appeal and dismissed the Adani Group’s petition. The bench of Justice Vivek Singh Thakur and Justice BC Negi ruled that there is no valid relationship between the state government and Adani, thus under Section 70, Adani cannot claim compensation against the state government.

The court noted that Adani’s refund claim was not substantiated, based on selective reading of comments on files and ignoring other relevant materials. The court clarified that a note on the file merely represents an individual’s opinion and has no legal standing.

Advocate General Anoop Rattan, representing the government, argued that the original contract was between Breakel and the government, making Adani’s demand for a refund of the upfront amount invalid. It is important to note that a single bench of the High Court had previously ordered the government to return Rs 280 crore deposited for the Jangi-Thopan-Powari hydroelectric project. On April 12, 2022, the single bench instructed the government to return the amount within two months, as per a cabinet decision from September 4, 2015. The single bench also ruled that if the government failed to return the amount within two months, it would have to pay it with 9% annual interest. The government appealed this decision before the division bench.

Adani had also challenged the correspondence issued by the Special Secretary (Electricity) on December 7, 2017, through a writ petition in the High Court. The single bench, accepting the company’s petition, had quashed the December 7, 2017 order, questioning the basis on which the decision to review its own decision was made, given the cabinet’s prior decision on September 4, 2015, to return the amount. However, the division bench overturned the single bench’s decision, finding it unjustifiable, and dismissed Adani’s appeal, which sought 12% interest from the date of deposit.