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V. KAMESWAR RAO
Mb Power (madhya Pradesh) Limited – Appellant
Versus
State Bank of India – Respondent
JUDGMENT
V. Kameswar Rao, J.
I.A. 7249/2022
1. This application has been filed under Order VII Rule 11 of the Code of Civil Procedure, 1908 (`CPC', for short) by the applicant PTC India Limited, who is the defendant No. 2 in the titled suit, seeking rejection of the suit on the ground that the disputes therein are covered under the Electricity Act, 2003 (`Electricity Act', hereinafter), and as such need to be adjudicated by the appropriate Electricity Regulatory Commission under the aegis of the said Act.
2. At the outset, I may provide a brief background of the factual matrix leading to the institution of the suit and the instant application. The plaintiff in the suit, MB Power (Madhya Pradesh) Limited, a company incorporated under the Companies Act, 1956 and a `generating company' within the meaning of Section 2 (28) of the Electricity Act, has developed and operates a 1200 MW (2 x 600 MW) coal-based thermal power project (`Project' hereinafter) in Anuppur district in the state of Madhya Pradesh. The defendant No. 1 is a public sector bank, defendant No. 2/applicant (hereinafter referred to as `applicant') is an Electricity Trading Licensee as per the provisions of the Electricit
The Central Commission has exclusive jurisdiction to adjudicate disputes concerning tariff under inter-state Power Purchase Agreements and can refer non-tariff disputes for arbitration.
The CERC has jurisdiction to adjudicate upon disputes involving generating companies or transmission licensees in regard to matters connected with clauses (a) to (d) of Section 79(1). Clause (b) obvi....
The interpretation of tariff regulations concerning power supply and agreements lies exclusively with the regulatory commission, and disputes must be adjudicated by it rather than the High Court.
Special laws govern disputes between generating companies, affirming the maintainability of arbitration clauses in power purchase agreements despite jurisdictional objections from the parties.
Point of law: Commission cannot be kept in the dark when the effect is amendment to the PPA.
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