GUJARAT URJA VIKASH NIGAM LTD. versus ESSAR POWER LTD.

GUJARAT URJA VIKASH NIGAM LTD. versus ESSAR POWER LTD.

Only the State Commission or arbitrator(s) nominated by it have jurisdiction to arbitrate or adjudicate disputes between licensees and generating companies; Section 11 of Arbitration and Conciliation Act, 1996 does not apply for appointment of arbitrators in such disputes due to the special provisions of Electricity...

Source-derived case information.

Parties
Appellant: Gujarat Urja Vikas Nigam Ltd.; Respondent: Essar Power Ltd.; Intervenor: Jayant Bhushan, Uttam Dutt (for M/s. Dua Associates)
Jurisdiction
India
Judgment Date
13 March 2008
Procedural Posture
Civil Appeal / Appeal From Judgment of Gujarat High Court on Petition Under Arbitration Act
Outcome
Appeal allowed; judgment of High Court set aside.
Legal Topics
Jurisdiction of State Commissions, Arbitration of Disputes Between Licensee and Generating Company, Interpretation of Statutes—special Versus General Provisions, Harmonious Construction of Conflicting Statutory Provisions
Electricity Law Arbitration Law Statutory Interpretation Jurisdiction of State Commissions Arbitration of Disputes Between Licensee and Generating Company Interpretation of Statutes—special Versus General Provisions Harmonious Construction of Conflicting Statutory Provisions

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Parties

Gujarat Urja Vikas Nigam Ltd.

Appellant

Essar Power Ltd.

Respondent

Jayant Bhushan, Uttam Dutt (for M/s. Dua Associates)

Intervenor

Procedural Posture

Civil Appeal / Appeal From Judgment of Gujarat High Court on Petition Under Arbitration Act

Legal Issues

  1. 1 Whether application under Section 11 of Arbitration and Conciliation Act, 1996 is maintainable for disputes between licensee and generating company, in light of Electricity Act, 2003.
  2. 2 Which authority has jurisdiction to arbitrate/adjudicate disputes between licensees and generating companies post Electricity Act, 2003.

Ratio Decidendi

Only the State Commission or arbitrator(s) nominated by it have jurisdiction to arbitrate or adjudicate disputes between licensees and generating companies; Section 11 of Arbitration and Conciliation Act, 1996 does not apply for appointment of arbitrators in such disputes due to the special provisions of Electricity Act, 2003. All procedural and other matters in arbitration, except appointment, will be governed by the Arbitration Act unless conflicting provisions exist in the Electricity Act, 2003.

Court Disposition

Appeal allowed; judgment of High Court set aside.

Orders

  • High Court's appointment of arbitrator set aside; only State Commission or arbitrator(s) nominated by it to arbitrate/adjudicate dispute.
  • State Commission directed to dispose of pending petition expeditiously, preferably within six months.