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HC tells DPC, MSEB to settle dispute amicably

The Bombay high court on Tuesday adjourned to June 21 the hearing on a petition by Dabhol Power Company challenging the jurisdiction of Maharashtra Electricity Regulatory Commission to intervene in the dispute between US energy major and the Maharashtra State Electricity Board.

The hearing was adjourned to enable the parties to arrive at an amicable solution.

On a query by Justice Ajit Shah, counsel for DPC, Atul Setalvad said his client would certainly prefer an amicable solution to its dispute with MSEB and sought time to seek instructions in this regard.

Advocate General Goolam Vahanvati said "the state is not interested in dumping the multi-billion project in the sea and will certainly welcome an amicable solution to the dispute."

However, he said the Centre would have to play an active role in this regard.

The court did not stay MERC's impugned order of May 29 restraining the multinational from activating escrow account and initiating international arbitration proceedings against the MSEB.

The bench headed by Justice Ajit Shah also directed MERC to adjourn until further orders its hearing on June 14 on MSEB's plea to restrain DPC from activating its escrow account and referring the dispute to international arbitration.

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