Adani Power has approached the Supreme Court by filing a claim for refund of Rs 280 crore against the state of Himachal Pradesh. The litigation arose out of an appeal by Adani Power against the July 18 judgment by a Division Bench of the Himachal Pradesh High Court, which had dismissed the company's claims. The case reflects the headaches over contractual disputes between big corporations and state governments, particularly in the energy sector.The dispute between Adani Power and the government of Himachal Pradesh is based on payments due within a power purchase agreement. One of India's large energy firms, Adani Power, had entered into an agreement with the state to provide it with a certain amount of electricity generated through its thermal power plants. There was clear agreement upon tariffs and methods of payment for the supply.It is Adani Power's case that it paid ₹ 280 crores in excess to the state in terms of PPA. According to it, the payment was on the basis of wrong calculations of tariffs, for which the excess payment should be refunded. When the state government refused to refund the amount, Adani Power moved the court, seeking judicial intervention for the recovery of money.The Division Bench headed by Justice Tarlok Singh Chauhan, ruled in favour of the state government and dismissed the company's arguments regarding the alleged overpayment. The court held that the payment made by Adani Power was as per the PPA and no refund was due to the latter.The judgment of the High Court thus came as a severe blow to Adani Power and spurred the said company to file an appeal before the Supreme Court. In this appeal, Adani Power has challenged the impugned judgment and order passed by the High Court interpreting the PPA and dismissing the refund claim filed by the appellant.The Supreme Court is now poised to hear the appeal by Adani Power, an order which may have far-reaching implications on similar disputes between energy companies and state governments across India. This case has drawn considerable interest from the stakeholders of the energy sector given that it will set a precedent in regard to how the courts interpret PPAs and handle refund claims related to tariff disputes.A Supreme Court affirmation of the High Court verdict will, in effect, accord approval to the stand taken by the state government and, in the process, probably discourage similar claims of overpayment by power firms in the future. The judgment in this case has the potential to have wide ramifications, both legally and financially, upon Adani Power and the overall energy sector in India.