Merc Refrained From Hearing Mseb Plea

The Bombay High Court on Tuesday directed the Maharashtra Electricity Regulatory Commission (MERC) to refrain indefinitely from further hearings on the plea made by the Maharashatra State Electricity Board (MSEB) against the Enron-promoted Dabhol Power Company (DPC).

The ruling was delivered by a division bench of the high court consisting of justices A P Shah and S A Bobde. In his judgment, Justice Shah said MERC should not go ahead with hearings on the issue "till further orders from the Bombay High Court".

However, the bench upheld the commission's May 29 order which said that DPC could not launch arbitration proceedings against the MSEB in the London Court of Arbitration.

The bench also directed DPC to abide by the commission's order of not operationalising the escrow account for the second phase of the Dabhol project.