NDLI: Hindustan Zinc Limited (h.z.l.) Vs. Ajmer Vidyut Vitran Nigam Limited

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	158 2003 – ss.86(1)(f) and ss.37 Electricity Act 42
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0 Referred Case 1
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Disposed Off
Headnote	Electricity Act, 2003 – ss.86(1)(f) and ss.37, 42, 158 – Appellant 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 – Appellant also set up a captive power plant at Chanderiya – It entered into three open access agreements dtd. 10.03.05 with the respondent – Dispute arose as to the unscheduled interchange charges payable under Clauses 8 & 9 of the agreements – By orders passed by the Rajasthan Electricity Regulatory Commission, it stated that it will itself decide the dispute between the parties – However, later the Commission appointed Arbitrator u/s.86(1)(f) r/w s.158 – Inter alia, the Arbitrator struck down Clause 8(c) & 9 of the agreements, consequently, the unscheduled interchange charges would be billed as per the agreements earlier entered between the parties –Commercial Court dismissed the challenge to the Award – High Court while setting aside the award, held that the hat worn by the appellant, which contained all four units, was that of an open access consumer and not that of generating company and thus, s.86(1)(f) was not attracted – Held: If there is an inherent lack of jurisdiction, the plea can be taken up at any stage and also in collateral proceedings – Thus, difficult to countenance to the appellant ‘s argument that having consented, the respondent cannot now turn around and challenge the very appointment of the Arbitrator as being invalid and without jurisdiction– Further, in view of judgment of Supreme court in Gujarat Urja Vikas Nigam Ltd. case, the expression ‘and’ occurring in s.86(1)(f) must be read as ‘or’ – As pointed out in the judgment, the State Commission cannot both decide the dispute itself and also refer it to an Arbitrator – Otherwise also, reference of any dispute for arbitration can only be between the licensees and generating companies and not otherwise – High Court right in stating that the Arbitrator could not, in law, have been appointed by the State Commission u/s.86 – Award based on such appointment would be non est in law – However, the High Court did not stop with finding on this issue, but went on to discuss the merits of the Award – In case the appellant wishes to avail any other remedy in law, none of the observations made by the High Court will stand in its way – Interpretation of Statutes.
Judge	Hon'ble Mr. Justice R.F. Nariman
Neutral Citation	2019 INSC 1319
Petitioner	Hindustan Zinc Limited (h.z.l.)
Respondent	Ajmer Vidyut Vitran Nigam Limited
SCR	[2019] 15 S.C.R. 113
Judgement Date	2019-12-04
Case Number	9212

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