The appeal was filed a day after the single bench had dismissed RPower subsidiary Coastal Andhra Power Ltd (CAPL) petition against the notice served by state-run Andhra Pradesh Southern Power Distribution Company Ltd (APSPDCL) due to delay in executing the power project.
CAPL's appeal came up for hearing before a division bench of justices Pradeep Nandrajog and Manmohan Singh and APSPDCL submitted it will not invoke the bank guarantee of Rs 300 crore.
"The statement of learned counsel for respondents (APSPDCL) is taken on record that the respondents would not insist for the bank which has issued the bank guarantee to remit the payment under the bank guarantee," the bench noted in its order and posted the matter for further hearing tomorrow.
Meanwhile, the RPower said in a statement that "the company has already filed for arbitration as per provisions of the Power Purchase Agreement against the eleven procurers in four states".
