New Delhi: Dabhol Power Company (DPC), promoted by US major Enron, and Maharashtra State Electricity Board (MSEB) on may 5 agreed to freeze their disputes before Electricity Regulatory Commission and foreign arbitrators to await the verdict of the Supreme Court on the jurisdiction issue.

A Bench comprising Justice Y K Sabharwal and Justice H K Sema passed an order to this effect after both DPC and MSEB gave their consent in writing to passing of a common order to this effect.

The consent order was passed on a petition filed by DPC challenging a Bombay High Court order holding that Maharashtra Electricity Regulatory Commission (MERC) had exclusive jurisdiction to decide disputes between DPC and MSEB over payment dues.

DPC had closed its operations in India nearly one-and-half years back due to differences between MSEB and Enron over the price to be paid by the state Board to the promoter on purchase of power.

It was agreed by both the parties that till the apex court decided on the jurisdiction issue, the MERC would not pass any further orders on the application filed by MSEB.

However, all interim orders passed by the MERC would continue to operate, the agreement said.

"Equally, during that time, the arbitration proceedings which have been initiated by DPC against MSEB shall not proceed," it said.

Significantly, the DPC said it would not enforce the LC No. 39 of 1999, which it had threatened to invoke to compensate it for the dues from Maharashtra government.

PTI