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In M.P. Power Management Company Limited, Jabalpur vs. Sky Power Southeast Solar India Private Limited & ors13 the appellant had challenged the judgment .

passed by the High Court whereby an order passed by the appellant terminating PPA entered into by the appellant & respondent, was quashed. Hon'ble Apex Court held that PPA is not a statutory contract. The mere fact that relief is sought under a contract which is not statutory will not entitle the State in a case by itself to ward off scrutiny of its action or inaction under the contract, if complaining party is of able to establish that such action/inaction is per se arbitrary. It was also held that an action will lie when State's action relates to the stage prior to the contract being rt entered into. Even after the contract is entered into there can be a variety of circumstances which may provide a cause of action to a party to the contract with the State to seek relief by filing a writ petition. Relevant paras from the judgment are as under......"