MERC jurisdiction: DPC seeks early HC hearing

Our Corporate Bureau

Mumbai, Aug 10: The Dabhol Power Company (DPC) on Friday in an application, appealed to the Mumbai High Court (HC) to hold an early hearing on their petition challenging the Maharashtra Electricity Regulatory Commission’s (MERC) jurisdiction to adjudicate its disputes with the Maharashtra State Electricity Board (MSEB).

The DPC has moved this application in the wake of a Supreme Court (SC) order on its special leave petition on August 6 directing the Mumbai HC to decide the issue of jurisdiction of MERC expeditiously. The HC division bench comprising Justice AP Shah and Justice SA Bobde, who had dismissed its previous petition on June 21, would further hold hearing on DPC’s application.

The petitioner has argued that MERC cannot override the international arbitration agreement between DPC and MSEB. The international arbitration agreement of 1996 has been recognised by the Indian law. The DPC is likely to substantiate its plea with the opinion expressed by the Indian financial institutions on their decision to support the Dabhol project. In addition to this, the DPC may incorporate its objection against MERC member Jayat Deo for his alleged ‘biased’ approach. MSEB sources said that the Board will file its affidavit soon after consulting its lawyers.

On August 6, DPC counsel P Chidambaram had withdrawn an application for submitting additional grounds before the SC and had said he would raise additional grounds at an “appropriate forum.”
A bench comprising Justice SP Bharucha and Justice YK Sabharwal had allowed the DPC petition challenging the HC’s June 26 order holding that the MERC, being an expert body, had jurisdiction to hear the dispute. The SC had ruled that until such time the Mumbai HC finally hears and decides the writ petition filed by DPC challenging the jurisdiction of MERC, it would not pass further orders on the application that has been made before it by the Board.