THE AMALGAMATED ELECTRICITY CO., LTD. versus N. S. BATHENA

THE AMALGAMATED ELECTRICITY CO., LTD. versus N. S. BATHENA

Clause XVI of the Sixth Schedule to the Electricity (Supply) Act, 1948, as incorporated by section 57(1), is not a statutory provision compelling reference to arbitration for disputes between licensees and consumers. The arbitration clause operates only as between the Government and the licensee, and does not bind the consumer unless incorporated into the contract between licensee and consumer.

Parties
Appellant: The Amalgamated Electricity Co., Ltd.; Respondent: I.N.S. Bathena; Intervener: Attorney General of India
Jurisdiction
India
Judgment Date
13 February 1959
Procedural Posture
Civil Appeal / Appeal by Special Leave From the High Court's Judgment in Revision, Confirming Lower Court Decisions Dismissing the Application for Stay of Suit
Outcome
Appeal dismissed with costs.
Legal Topics
Arbitration Clause in Electricity License, Binding Nature of Arbitration Clauses on Consumers, Reference to Arbitration Under Statutory Provisions
Arbitration Electricity Law Arbitration Clause in Electricity License Binding Nature of Arbitration Clauses on Consumers Reference to Arbitration Under Statutory Provisions

Case Brief

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Parties

The Amalgamated Electricity Co., Ltd.

Appellant

I.N.S. Bathena

Respondent

Attorney General of India

Intervener

Procedural Posture

Civil Appeal / Appeal by Special Leave From the High Court's Judgment in Revision, Confirming Lower Court Decisions Dismissing the Application for Stay of Suit

Legal Issues

  1. 1 Whether the arbitration clause incorporated by section 57(1) of the Electricity (Supply) Act, 1948 is binding on a consumer of electricity for disputes with the licensee
  2. 2 Whether such clause constitutes a statutory provision for arbitrating disputes between licensee and consumer

Ratio Decidendi

Clause XVI of the Sixth Schedule to the Electricity (Supply) Act, 1948, as incorporated by section 57(1), is not a statutory provision compelling reference to arbitration for disputes between licensees and consumers. The arbitration clause operates only as between the Government and the licensee, and does not bind the consumer unless incorporated into the contract between licensee and consumer.

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.