Late payment surcharge instalment limits must be assessed supplier-wise, not in aggregate.

Adyah Solar Energy sought payment of Rs.39,86,93,281 under Power Purchase Agreements dated 20 April 2018.

BESCOM maintained that the invoiced amounts had been paid and that only late payment surcharge (“LPS”) remained payable, subject to reconciliation.

The Single Judge held that, where the agreements permitted emailed bills, the email-receipt date was the effective date for calculating LPS, and directed payment in twelve equal monthly instalments following review of the original order.

In appeal, BESCOM argued that reconciliation remained incomplete and that, given its aggregate dues of Rs.7,526 crore, payment should be made in 34 instalments under the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 (“LPS Rules”).

1. Whether the effective date for calculating LPS on emailed invoices was the date of email receipt or the date the physical bills were received

2. Whether the maximum number of instalments for payment should be determined by aggregating BESCOM’s dues to all suppliers, rather than by reference to the amount payable to the individual generator

Clause 13.4 of the Power Purchase Agreements provides for LPS at 1.25% per month on an outstanding amount, calculated day to day, where payment is delayed beyond 30 days after the due date; LPS is claimed through a supplementary bill.

Rule 2(g) of the LPS Rules defines LPS as a charge payable by a distribution licensee to a generating company or electricity trading licensee for power procured from it, or by a transmission-system user to a transmission licensee, on account of delayed payment.

Rule 5(1) prescribes maximum instalment periods for liquidation of outstanding dues, with the applicable period varying according to the amount of those dues.

The Court treated LPS as supplier-specific; the distribution licensee’s aggregate dues to all suppliers do not determine the instalment period for a particular supplier’s claim.

The Single Judge had resolved the billing-date issue by holding that, where email billing was permitted by the contract, the date of receipt of the emailed invoice governed the calculation of LPS; the appellate Court noted that reconciliation concerned only that date and that the respondent had effected it.

As to instalments, the Court rejected BESCOM’s reliance on its total dues to all suppliers.

Because LPS is payable to a particular generating company for power procured from it, BESCOM’s aggregate liability could not be used to place this respondent’s claim in the 34-instalment category.

The Court also noted the Single Judge’s recorded submission that BESCOM would not insist on applying the LPS Rules to this claim and would consider payment under the PPA.

It dismissed the writ appeal, leaving the Single Judge’s directions—including payment in twelve equal monthly instalments—undisturbed; pending interlocutory applications were disposed of.