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HC order on DPC-MERC dispute on March 5

Bombay high court on Thursday reserved until March 5 its order on a petition moved by Enron's Dabhol Power Company, challenging powers of Maharashtra Electricity Regulatory Commission to adjudicate its dispute with Maharashtra State Electricity Board.

Arguments concluded before Justice Ajit Shah and Vijaya Tahilramani who decided to deliver verdict on March 5.

On behalf of MSEB, Advocate General, Goolam Vahanvati, said MERC had powers to regulate PPA as well as adjudicate DPC's dispute with MSEB over non-payment of dues.

He said after the enactment of Electricity Regulation Act, 1998, the electricity regulatory commissions in various states derived powers to modify power purchase agreements entered into by private parties with the government on sale of power to consumers.

DPC's counsel P Chidambaram, however, argued that the act came into existence only in 1998 whereas the PPA between DPC and MSEB was signed in 1993. Therefore, provision for regulation of PPA under the act was redundant.

Vahanvati, on the other hand, submitted that provisions of the act had restropective effect and hence MERC had the jurisdiction to adjudicate DPC's dispute with MSEB just as it was empowered to regulate or modify the PPA.

Vahanvati opined that DPC was not justified in moving a writ petition before the high court challenging MERC's powers to adjudicate DPC's dispute with MSEB. The only way for DPC to seek redressal of its grievance was to move the court in appeal against MERC's order on this issue.

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