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DPC moves Bombay HC, requests early hearing

Enron-promoted Dabhol Power Company on Friday moved the Bombay high court requesting for an early hearing of their petition filed as per the Supreme Court order of August 6 challenging the Maharashtra Electricity Regulatory Commission's jurisdiction to adjudicate in the $48 million dispute with Maharashtra State Electricity Board.

Apart from the jurisdiction issue, in its petition DPC has contended that MERC cannot override the international arbitration agreement between itself and MSEB, which was recognised by the (Indian) law.

The US energy major would also raise additional grounds supporting its petition in the court, including its objection to MERC member Jayant Deo, legal sources said.

On August 6, DPC counsel P Chidambaram had withdrawn an application for submitting additional grounds before the apex court and had said he would raise additional grounds in an 'appropriate forum'.

Sources said eleven international lenders to the project including US government owned Overseas Private Investment Corporation, who represent $444 million of funding in the project were also expected to support DPC in the high court.

A Bench comprising Justice S P Bharucha and Justice Y K Sabharwal had allowed DPC petition challenging the high court's June 26 order holding that the Commission, being an expert body, had jurisdiction to hear the dispute.

"Until such time the high court finally hears and decides the writ petition filed by DPC challenging the jurisdiction of MERC, it will not pass further orders on the application that has been made before it by the MSEB," it said.

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