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Change in Indonesian Law is not a force majeure event

In Energy Watchdog v. Central Electricity Regulatory Commission, involving the Power Purchase Agreement (PPA) entered into by the Government and the Adani Enterprises, where the Power Generating Company had pleaded that the rise in price of coal consequent to change in Indonesian law would be a force majeure event which would entitle the respondents to claim compensatory tariff, the the Supreme Court bench of P.C. Ghose and R.F. Nariman, JJ held that the change in the Indonesian Law was neither the fundamental basis of the contract dislodged nor was any frustrating event and that alternative modes of performance were available, albeit at a higher price.

 Article referred: http://blog.scconline.com/post/2017/04/11/change-in-indonesian-law-is-not-a-force-majeure-event-power-generating-companies-not-entitled-to-compensatory-tariff/

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