Remand And The Duty Of Fresh Decision: Supreme Court Clarification

Introduction

The Hon'ble Supreme Court in the case of RattanIndia Power Limited vs Maharashtra State Electricity Distribution Company and Anr. 2025 INSC 1502 decided on 10th December 2025, addresses critical questions concerning the scope of remand proceedings, appellate finality, and the computation of carrying costs and late payment surcharge rates. The court clarified a foundational procedural principle of remands finding that a remand for a fresh consideration does not freeze the legal position as on the date of the remand. This judgement assumes importance in regulatory and commercial adjudication.

Factual Background

The appellant Rattan India Power Limited (RPL) is in a long-term Power Purchase Agreement (PPA) to supply power to the respondent Maharashtra State Electricity Distribution Company Limited (MSEDCL) for capacities 450 MW and 750 MW. During the course of these PPAs, RPL was impacted by several Change in Law events which had increased its