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DPC case: HC asks MERC to decide its jurisdiction in 6 weeks

In a setback for Enron's Dabhol Power Company, the Bombay high court on Tuesday directed Maharashtra State Electricity Commission to decide upon its own jurisdiction in solving the imbroglio between the State Electricity Board and DPC within six weeks.

Justice Ajit Shah and Justice Sharad Bobde, however, stayed the order till July 10 to enable DPC move the Supreme Court in appeal.

On June 6, DPC had filed a petition in the Bombay high court challenging the MERC jurisdiction to solve its ongoing monetary tussle with MSEB.

"MERC is an expert body which can decide upon its jurisdiction," the judges said after hearing the arguments from both DPC and MSEB side.

In his submission, DPC lawyer, Atul Setalvad, had argued that if there was a patent lack of jurisdiction of a judicial body (MERC in this case), the high court could interfere in the matter.

However, the bench ruled that "this is not a fit case for the high court to interfere at this stage".

They said the contention of both the parties have been kept open and that the bench had not dismissed any opinion on MERC's jurisdiction but it was upon the commission to decide the issue.

The bench also clarified that the regulator's May 29 order, restraining DPC from international arbitration and invoking the escrow account from the banks, would continue.

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