JUDGMENT

G.P. Mathur, J.-Leave granted.

These appeals, by special leave, have been preferred against the judgment and order dated 3.6.2003 of Bombay High Court in MERC Appeal No. 1 of 2002 (The Tata Power Company v. BSES Ltd. & Ors.) and MERC Appeal No. 2 of 2002 (BSES Ltd. & Ors. v. The Tata Power Company) which had been preferred under Section 27 of the Electricity Regulatory Commissions Act, 1998 (hereinafter called "the Act") challenging the order dated 7.12.2001 of Maharashtra Electricity Regulatory Commission (for short `the Commission ).

2. The Tata Power Company Ltd. (for short TPC ) is a generating company within the meaning of Sub-section 4A of Section 2 and a bulk licensee within the meaning of Sub-section (3) of Section 2 of the Electricity (Supply) Act, 1948. An agreement was arrived at between Maharashtra State Electricity Board (for short MSEB ) and TPC in or about March, 1985, whereby TPC was provided 300 MVA standby facility from MSEB and it was further agreed that in view of the growing requirement of the city of Bombay, the said standby facility would stand enhanced by a quantum of 50 MVA per year. This standby facility increased to 550 MVA by the year 1990 and pa