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DPC files SLP in Supreme Court on MSEB payment dispute

US energy major Enron's Dabhol Power Company on Wednesday filed a special leave petition in the Supreme Court against the Bombay high court order dismissing its plea challenging the authority of Maharashtra Electricty Regulatory Commission to adjudicate on its payment dispute with Maharashtra State Electricity Board.

DPC's lawyers said that the SLP was filed in the Apex Court on Wednesday, but declined to divulge the contents of the writ.

Enron had moved the high court for quashing of MERC order restraining the US energy giant from activating the escrow account and initiating international arbitration proceedings against MSEB, which allegedly had defaulted on payment of electricity bills.

The high court on June 26 had dismissed DPC's petition on the ground that MERC was an expert body and competent enough to decide the matter.

The HC, while staying implementation of its order till July 10 to allow the company to seek further legal remedy, had directed MERC to decide the issue within six weeks.

However, the multinational had obtained a further reprieve till July 17 as it had received the court order on July 2.

Enron's Indian unit, Dabhol Power Company and state utility MSEB, have been locked in a wrangle for more than six months over payments.

In May, Enron issued a preliminary termination notice after MSEB defaulted on payments, and the utility, Dabhol's sole buyer, stopped taking power from the embattled $3-billion plant.

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