PUNJAB STATE ELECTRICITY BOARD versus BASSI COLD STORAGE, KHABAR AND ANR.

PUNJAB STATE ELECTRICITY BOARD versus BASSI COLD STORAGE, KHABAR AND ANR.

Disputes regarding damages for wrongful disconnection of electricity supply are not among the matters directed to be determined by arbitration under the Indian Electricity Act, 1910, and therefore cannot be referred to arbitration even if so contemplated by a contractual condition, as the Act overrides both the contract clause and the Arbitration Act, 1940.

Parties
Appellant: Punjab State Electricity Board; Respondents: Bassi Cold Storage, Khabar and another
Jurisdiction
India
Judgment Date
16 March 1994
Procedural Posture
Civil Appeal / Supreme Court Appeal From Order of Punjab and Haryana High Court in C.r. No. 1791 of 1986
Outcome
Appeal allowed
Legal Topics
Scope of Arbitral Disputes Under Electricity Act, Overriding Effect of Special Statute Over General Arbitration Law, Remedies for Wrongful Disconnection, Interpretation of Contractual Arbitration Clauses
Electricity Law Arbitration Law Scope of Arbitral Disputes Under Electricity Act Overriding Effect of Special Statute Over General Arbitration Law Remedies for Wrongful Disconnection Interpretation of Contractual Arbitration Clauses

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 2 Authorities cited 10 Party arguments 2
Sign in to unlock

Parties

Punjab State Electricity Board

Appellant

Bassi Cold Storage, Khabar and another

Respondents

Procedural Posture

Civil Appeal / Supreme Court Appeal From Order of Punjab and Haryana High Court in C.r. No. 1791 of 1986

Legal Issues

  1. 1 Whether a dispute regarding damages for wrongful disconnection of electricity supply is referable to arbitration under the Indian Electricity Act, 1910 or by virtue of a condition in the supply contract.
  2. 2 Whether provisions of the Indian Electricity Act, 1910 override contractual arbitration stipulations and the general Arbitration Act, 1940.

Ratio Decidendi

Disputes regarding damages for wrongful disconnection of electricity supply are not among the matters directed to be determined by arbitration under the Indian Electricity Act, 1910, and therefore cannot be referred to arbitration even if so contemplated by a contractual condition, as the Act overrides both the contract clause and the Arbitration Act, 1940.

Court Disposition

Appeal allowed

Orders

  • Impugned judgment of Punjab and Haryana High Court set aside insofar as issues 2 and 3 are concerned.
  • Liberty reserved to respondent to approach appropriate civil court for relief.