In Brief
A power-generating company challenged the High Court's order appointing an arbitrator under the Arbitration and Conciliation Act to resolve a dispute with the Madhya Pradesh Electricity Board over a terminated power purchase agreement. The Supreme Court held that the Electricity Act 2003 grants exclusive jurisdiction to State Electricity Commissions for disputes between licensees and generating companies, and this special statutory provision overrides general arbitration laws. The Court ruled that lack of subject matter jurisdiction cannot be cured by parties' consent and can be raised at any stage. The High Court's appointment order was set aside, but the respondent retained the right to pursue alternative remedies available in law.
The lawyer headnote and full judgment text are available to registered users.