High Court To Adjudicate Enron-Mseb Wrangle, Rules Supreme Court

The Supreme Court Monday ruled that the Bombay High Court is the appropriate authority to rule on the jurisdiction of disputes between the Enron-promoted Dabhol Power Company (DPC) and the Maharashtra State Electricity Board (MSEB).

DPC had brought the issue before the Supreme Court in a special leave petition, wherein it contested the jurisdiction of the Maharashtra Electricity Regulatory Commission (MERC) over various disputes it had with MSEB.

A two-judge bench of Justices S P Bharucha and Y K Sabharwal also refused to allow DPC to initiate international arbitration proceedings in London and also restrained it from operationalising the escrow account for the second phase of the project.

Earlier, the Bombay High Court, in its order of June 26, had directed DPC to go back to MERC. It had ruled that DPC was premature in moving the high court when the commission itself was yet to decide on its jurisdiction.

The Supreme Court bench said: