JUDGMENT :

ROHINTON FALI NARIMAN, J.

1. Leave granted.

2. The present appeal raises an important question as to the scope of arbitration proceedings under the Electricity Act, 2003 (hereinafter referred to as ‘Electricity Act’ for brevity), in particular, Section 86(1)(f) thereto read with Section 158.

3. The skeletal facts necessary to decide this case are as follows:

The appellant before us, Hindustan Zinc Limited, has four high tension electricity connections for its units at Chanderiya, Debari, Aghucha and Dariba, for which four contracts with the respondent were entered into for purchase of electricity.

4. The appellant also set up a captive power plant of 154 MW at Chanderiya, which was commissioned in February, 2005, and synchronized with the Rajasthan Vidyut Prasarran Nigam Limited Grid. Short term open access to transmission and distribution systems of this Grid was sought under the Regulations and requisite permission was obtained. Thereafter, the appellant entered into three open access agreements with the respondent on 10.03.2005 for wheeling of power from its captive power plant on the respondent’s distribution system to the three units that were owned by it which were the u