Gujarat HC Says Battery-Storage Agreement Remains In Force If Developers Achieve Financial Closure By Nov 5; Else Final Notice Takes Effect

The petitioners challenged Respondent No. 2’s final notice dated 11 September 2026 and subsequent communication, which concerned failure to achieve Financial Closure and demanded extension charges.

They sought, among other reliefs, consideration of their Force Majeure claim under the BESPA dated 6 March 2026 and protection against contractual consequences

By affidavit dated 31 October 2026, the petitioners undertook to strive to achieve Financial Closure by 5 November 2026, subject to applicable Ministry of Power guidelines and directions.

Relying on a coordinate Bench order in a similar matter, they submitted that the BESPA would remain operative if Financial Closure was achieved by that date; otherwise, the final notice would take effect, subject to their right to challenge it before the appropriate forum.

The petition was brought under Article 226 of the Constitution of India, which empowers the High Court to issue appropriate writs and directions.

The Court’s directions were based on the petitioners’ undertaking, the BESPA dated 6 March 2026, the applicable Ministry of Power guidelines and directions, and the coordinate Bench’s order dated 23 October 2026 in Special Civil Application No. 15713 of 2026.

The Court did not determine the substantive contractual requirements for the Force Majeure claim or the petitioners’ entitlement to relief under the BESPA.

The Court considered the petitioners’ undertaking to achieve Financial Closure by 5 November 2026, subject to applicable Ministry of Power guidelines, and the approach adopted by the coordinate Bench in a similar matter.

It disposed of the petition on that basis, making the status of the BESPA and the survival of the representation dependent on whether the petitioners met the stated deadline.

It left any challenge to the final notice to the appropriate forum.

If they failed to do so, consideration of their representation would not survive and the final notice dated 11 September 2026 would come into effect, subject to the petitioners’ right to challenge it before the appropriate forum in accordance with law.

The petition was disposed of.