Common use of MSEDCL’s Default Clause in Contracts

MSEDCL’s Default. (a) If MSEDCL is in default on account of reasons including inter alia: I. Default by MSEDCL in performing its obligation under this agreement, II. Failure to pay the monthly and / or supplementary bills beyond 90 days, III. If MSEDCL becomes voluntarily or involuntarily the subject of proceeding under any bankruptcy or insolvency laws or goes into liquidation or dissolution or has a receiver appointed over it or liquidator is appointed, pursuant to Law, except where such dissolution of MSEDCL is for the purpose of a merger, consolidation or reorganization and where the resulting entity has the financial standing to perform its obligations under this Agreement and creditworthiness similar to MSEDCL and expressly assumes all obligations under this agreement and is in a position to perform them. The defaulting Procurer shall, subject to the prior consent of the Hybrid Power Developer, novate its part of the PPA to any third party, including its Affiliates within the stipulated period. (b) In the event the aforesaid novation is not acceptable to the Hybrid Power Developer, or if no offer of novation is made by the defaulting Procurer within the stipulated period, then the Hybrid Power Developer may terminate the PPA and at its discretion require the defaulting Procurer to either: i. takeover the project assets by making a payment of the termination compensation equivalent to the amount of the debt due and the 150% (one hundred and fifty per cent) of the adjusted equity as detailed in the PPA or ii. pay to the Hybrid Power Developer, damages, equivalent to 6 (six) months, or balance PPA period whichever is less, of charges for its contracted capacity, with the project assets being retained by the Hybrid Power Developer. (c) In the event of termination of PPA, any damages or charges payable to the STU, for the connectivity of the plant, shall be borne by MSEDCL.

MSEDCL’s Default. (ai) If MSEDCL is in default on account of reasons including inter alia: I. a) Default by MSEDCL in performing its obligation under this agreement, II. , (ii) Failure to pay the monthly and / or supplementary bills beyond 90 days, III. b) If MSEDCL becomes voluntarily or involuntarily the subject of proceeding under any bankruptcy or insolvency laws or goes into liquidation or dissolution or has a receiver appointed over it or liquidator is appointed, pursuant to Law, except where such dissolution of MSEDCL is for the purpose of a merger, consolidation or reorganization and where the resulting entity has the financial standing to perform its obligations under this Agreement and creditworthiness similar to MSEDCL and expressly assumes all obligations under this agreement and is in a position to perform them. . c) The defaulting Procurer shall, subject to the prior consent of the Hybrid Power DeveloperHPD, novate its part of the PPA to any third party, including its Affiliates within the stipulated period. (bii) In the event the aforesaid novation is not acceptable to the Hybrid Power DeveloperHPD, or if no offer of novation is made by the defaulting Procurer MSEDCL within the stipulated st ipulated period, then the Hybrid Power Developer WPG may terminate the PPA and at its discretion require the defaulting Procurer to either: i. a) takeover the project assets by making a payment of the termination compensation equivalent to the amount of the debt due and the 15011 0% (one hundred and fifty ten per cent) of the adjusted equity as detailed in the PPA or ii. or b) pay to the Hybrid Power DeveloperHPD, damages, equivalent to 6 (six) months, or balance PPA period whichever is less, of charges for its contracted capacity, with the project assets being retained by the Hybrid Power DeveloperHPD. (ciii) In the event of termination of PPA, any damages or charges payable to the STU/CTU, for the connectivity of the plant, shall be borne by MSEDCL.