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Mumbai, June 12: The Bombay High Court on Tuesday directed the Maharashtra Electricity Regulatory Commission (MERC) to adjourn the hearing slated for June 14 about a petition filed by the Maharashtra State Electricity Board (MSEB), until further orders. The court also asked the MSEB and Dabhol Power Company (DPC) to make their stand clear on whether there was room for an amicable settlement between two over the Dabhol impasse.

The division bench comprising Justice AP Shah and SA Bobde has adjourned the hearing on a petition filed by the DPC challenging the MERC jurisdiction on June 21. Although, the division bench has directed the MERC to adjourn its hearing on a petition filed by the MSEB, the ad interim relief granted by the MERC to MSEB restraining the DPC to reactivate the escrow account and carry out arbitration proceedings, stay in force. The MERC advocate who was present during the hearing, heard the court’s directives.

The DPC and the MSEB said that they will come up with their stand in connection with an amicable settlement to resolve the Dabhol crisis during the next hearing slated for June 21.

Justice Shah said that the court was aware that crores of rupees have been funded by Indian financial institutions (IFI), as well as foreign banks, in the implementation of the Dabhol project. The court was also aware that the DPC’s tariff was not unaffordable to the MSEB.

Justice Shah further said that the DPC simply resorted to the issuance of preliminary termination notice. He added that the court was also aware that the state government has set up a negotiation committee with an objective to reduce the tariff. However, the court did not know about the committee’s findings.

DPC counsel Atul Setalwad said that he would like to take instructions from his client over the court’s directives, as various agencies are involved in the matter.

After seeking due instructions from the DPC, he told the court that it would need a weeks time to appear before the court in this regard.