LexGUJARAT URJA VIKASH NIGAM LTD. versus ESSAR POWER LTD.
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• [2008] 4 S.C.R. 822 A GUJARAT URJA VIKASH NIGAM LTD. J- ~: v. ESSAR POWER LTD. (Civil Appeal No. 1940 of 2008) ~ B MARCH 13, 2008 (H.K. SEMA AND MARKANDEY KAT JU, JJ.) Electricity Act, 2003: ~ s. 81(1)(f) rlw ss. 158, 173 and 174 - Disputes between c licensees and generating Companies - HELD: Are to be resolved either by the State Commission itself or by arbitrator(s) nominated by it-In s.86(1)(f) word 'and' in between the expressions 'generating companies' and 'to refer any dispute' means 'or' - s. 11 of Arbitration and Reconciliation D Act, 1996 has no application in such matters - Section 86( 1 )(f) being a special provision will override the general provision in s.11 of 1996 Act - However, s.86(1)(f) is only restricted to )., authority which is to adjudicate or arbitrate between licensees ¥ and generating companies - Procedural and other matters E relating to such proceedings will be governed by the 1996 Act unless there is a conflicting provision in 2003 Act - Arbitration and Conciliation Act; 1996 - ss. 11(5) and (6) - Interpretation of Statutes - Special provision to override general provision. SS. 174 and 175 - HELD: Are to be construed F harmoniously to the effect that whenever there is a dispute -.,< between a licensee and a generating company only the State "' Commission or the Central Commission, as the case may be, or arbitrator(s) nominated by it can resolve such a dispute, whereas all other disputes (unless there is some other G provision in the 2003 Act) would be decided in accordance with s. 11 of the 1996 Act - Interpretation of Statutes - Harmonious cons"truction. lnteroretation of Statutes: H 822 ' i ' .... GUJARAT URJA VI KASH NIGAM LTD. v. ESSAR 823 POWER LTD. Mimansa Rules _of Interpretation - Sutra "'!]o/~(6l/6l/Rt¢fli/ A ~~fCITTf ~ k ~:" - Meaning of - 'Gunapradhan', 'Samanjasya' and 'Badha' principles - Applicability of Words and Phrases: Word 'and' occurring in s.86(1)(f) of Gujarat Electricity B Industry (Reorganization and Regulation) Act, 2003 between the expressions 'generating companies' and 'to refer any dispute' - Connotation of. The respondent-Company, which was engaged in the C business of generating of electricity, entered into an agreement on 30.5.1996 to allocate a certain amount of electricity to the Gujarat Electricity Board, which was later succeeded by the appellant-Gujarat Urja Vikas Nigam. Clause 11 (2) of the agreement was the arbitration clause. Certain disputes with regard to allocation of power arose D between the parties. On 14.11.2005 the respondent- Company called upon the appellant-Nigam to refer the disputes to a certain arbitrator; whereas the Nigam filed Application No. 873 of 2005 u/s 86(1 )(f) of the Electricity Act, 2003 (the 2003 Act) before the Gujarat Electricity E Regulatory Commission. The respondent then filed an application under Sections 11(5) and (6) of the Arbitration and Conciliation Act, 1996 (the 1996 Act). The High Court appointed the arbitrator as suggested by the respondent. Aggrieved, the Nigam filed C.A. No, 1940 of 2008. C.A. No. F 1941 of 2008 was filed against another order of the High Court in an incidental matter. It was contended for the appellant-Nigam that after coming into force of the 2003 Act, disputes between G licensee and generating companies were to be adjudicated as specifically provided in s.86(1 )(f), and keeping in view the provisions of ss. 158, 173 and 17 4 of the 2003 Act, provisions of s.11 of the 1996 Act could not be resorted to on the strength of s.175 of the 2003 Act. H 824 SUPREME COURT REPORTS [2008] 4 S.C.R. A The question for consideration before the Court was: ~ whether the application under Section 11 of the 1996 Act filed by the respondent-Company was maintainable in ,, .. view of the specific statufory provisions contained in the 2003 Act providing for adjudication of disputes between B the. licensee and the generating companies? Disposing of the appeals, the Court HELD: 1.1 Section 86(1 )(f) of the Electricity Act, 2003 -1 is. a special provision for adjudication of disputes c between the licensee and the generating companies. Such disputes can be adjudicated upon either by the State Commission or the person(s) to whom it is referred for arbitra~ion. In Section 86(1 )(f) of the 2003 Act the word 'and' between the words 'generating companies' and the D words 'to refer any dispute' means 'or', otherwi
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