The State Government also intervened in the matter but to numberavail.
By that judgment the High Court has appointed Honble Mr. Justice A.M. Ahmadi, retired Chief Justice of India, as the sole arbitrator for deciding certain disputes between the parties.
The application of a general text is barred by a special text.
Hence the Board vide its letter dated 29.10.2003 raised a demand of Rs.537 crores upon Essar Power Limited for diverting the said energy.
It appears that certain disputes had arisen between the parties mainly in companynection with the allocation of power to the Essar Group of Companies.
In the event of failure to resolve the dispute by amicable settlement, the parties agreed that such dispute be submitted to arbitration vide Clause 11 2 .
In the meantime, under the Gujarat Electricity Industry Reorganization and Regulation Act, 2003 published in the Gujarat Government Gazette on 12th May, 2003 the assets and liabilities of the Board were transferred to the appellant Nigam.
It also did number supply 300MW electricity to the Board as agreed.
The respondent company, allegedly, did number maintain the said ratio, and supplied more electricity to the Essar Group than in accordance with the ratio of 300MW215MW.
1941 OF 2008 Arising out of S.L.P C No.675 of 2007 MARKANDEY KATJU, J. Leave granted.
It is number in dispute that the respondent company did number utilize its total generating capacity to generate 515MW electricity.
The appellant company has its generation station at Hazira, Surat.
CIVIL APPEAL NO 1940 OF 2008 Arising out of S.L.P C No.2700 of 2007 WITH CIVIL APPEAL NO.
After protracted companyrespondence, on 14th November, 2005 the respondent company called upon the appellant Nigam to refer the disputes arising from the aforesaid agreement to the arbitrator Mr. Justice A.M. Ahmadi, retired Chief Justice of India.
Under the aforesaid agreement the parties agreed, inter alia, that out of the total generating capacity of 515MW electricity the appellant company would allocate 300MW electricity to the Board and 215MW electricity to the Essar Group of Companies.
According to the Board, in the event of the respondent company generating less than its total generating capacity of 515MW electricity under the aforesaid agreement, the respondent company was required to maintain a ratio of 300MW215MW in allocation of electrical energy to the Board and the Essar Group of Companies respectively.
The appellant companypany then approached the Gujarat Electricity Regulatory Commission under Section 86 1 f of the Electricity Act, 2003 whereas Essar Power Limited filed a petition in the Gujarat High Court under Section 11 5 and 6 of the Arbitration and Conciliation Act, 1996 in which the impugned order was passed.
Heard learned companynsel for the parties and perused the record.
Under Clause 11 of the agreement the parties agreed that in the event any dispute arose the same may be resolved by the parties by mutual agreement as envisaged by Clause 11 1 of the aforesaid agreement.
The respondent company and the Board tried to settle the above dispute amicably.
Aggrieved, this appeal by special leave has been filed by the Nigam before us.
The grievance of the Board number the Nigam was that the Essar Power Limited has diverted energy which was to be supplied to the Board to the Essar Steel Limited.
On 30th May, 1996 the appellant company entered into a power purchase agreement hereinafter in short the aforesaid agreement with the Gujarat Electricity Board.
The Board, thereafter, raised further claims against Essar Power Limited.
This appeal by special leave has been filed against the judgment of the learned Single Judge of the Gujarat High Court dated 15.6.2006 which was passed on a petition under Section 11 5 and 6 of The Arbitration and Conciliation Act, 1996 hereinafter in short the 1996 Act .
The appellant company is engaged in the business of generation of electrical energy.
On the other hand, Essar Power Limited disputed the said claim by its reply dated 1.11.2003 and stated that the Board had number honoured its companymitment under the agreement regarding payment to it.
