Dabhol Power Company and Maharashtra State Electricity Board on Wednesday settled their long-standing disputes on the contentious power purchase agreement, with 'consent terms' filed in the Supreme Court drawing the curtain on all legal proceedings in India and abroad.

DPC and MSEB have mutually agreed and decided to settle their disputes following an out-of-court settlement already reached by them.

"It is agreed and decided between the parties that all claims, causes of action and civil proceedings of whatsoever nature between the parties wherever pending relating to DPC including damages of any nature whatsoever against each other and their respective subsidiaries and affiliates whether within or outside India are hereby extinguished," the consent terms filed before a Bench comprising Justice H K Sema and Justice B N Srikrishna, said.

The consent arrived between the parties have cleared the deck for all the major stakeholders involved in the revival of DPC to start work on their plans, especially by the new Joint Venture company -- Ratnagiri Gas and Power Private Ltd.

An important aspect of the consent terms included that DPC will not demand Canara Bank [Get Quote] for the payment of Rs 136 crore (Rs 1.36 billion) or any other amount under the Letter of Credit issued on behalf of MSEB.

"The obligation of MSEB to maintain the Letter of Credit will stand discharged," it said.

The consent terms placed before the court said that the December 8, 1993 PPA (amended from time to time) and consolidated and amended PPA of December 9, 1998, has been validly avoided with effect from May 23, 2002 and the parties have no rights or obligations under these agreements.