DPC may drop cases for want of funds

Sanjay Jog

Mumbai, Dec 10: The Dabhol Power Company (DPC) may drop pursuing its legal battle both in the Indian courts and arbitration tribunal in London in view of paucity of funds.

However, DPC may take the legal battle against the Maharashtra State Electricity Board (MSEB) on the issue of jurisdiction of Maharashtra Electricity Regulatory Commission (Merc) to adjudicate upon dispute between two of them to its logical conclusion.

Sources in DPC told The Financial Express that the company was not in a position to bear the fees of its lawyers both internally and externally. Sources added that the company was also not sure about until how much time it can hire the services of its legal consultant Paul Craxy. Similarly, the company would have to discontinue the consultancy services from the LinkLaters on the similar grounds.

They said that the company can manage the expenses on pursuing its petition in the Bombay high court to come up for hearing on December 13 on the Merc’s jurisdiction to adjudicate dispute and differences with MSEB. “However, for rest of petitions and arbitration proceedings there are no funds as the requirement will be few thousand million dollars,” these insiders added.