HC upholds stay on Tata Power/REL fued

Tata Power Company today announced that the Bombay High Court has passed an order upholding its earlier order dated June 18, 2004 staying the impugned Maharashtra Electricity Regulatory Commission (MERC) order directing the company to pay Reliance Energy a sum of Rs 315 crore.

According to a release issued to the BSE today, Chief Justice D C Bhandari and Justice D Y Chandrachud maintained that the interim order in the matter of standby charges stands. "It further referred the issue of standby charges to the appellate tribunal, which, as per the order, is likely to be functional by January 17, 2005. The court has asked the appellate tribunal to dispose off the matter within four months from the date of the receipt of the order," the release said.

An official spokesperson of Tata Power said: "We welcome the High Court order, and eagerly await the formation of the appellate tribunal".

Tata Power had appealed the MERC order of May 31, 2004 before a division bench of the Bombay High Court. The division bench, in its order of July 01, 2004, stayed the MERC order directing payment of Rs 315 crore to REL and had instead directed Tata Power to furnish a bank guarantee for the said amount.