Electricity Act • Official Statutory Text & Practice Guide
Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003
Section 158 of Electricity Act: Electricity Supply & Regulatory Procedure
Official Bare Act Text
Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary
Where any matter is, by or under this Act, directed to be determined by arbitration, the matter shall, unless it is otherwise expressly provided in the licence of a licensee, be determined by such person or persons as the Appropriate Commission may nominate in that behalf on the application of either party;
but in all other respects the arbitration shall be subject to the provisions of the Arbitration and Conciliation Act , 1996 (26 of 1996).
Section 158 of the Act regulates arbitration under the Act, providing that where any matter is directed to be determined by arbitration, it shall be determined by the Appropriate Commission or by an arbitrator appointed by it.
Special Statutory Arbitration Framework: Establishes that all arbitrations mandated under the Electricity Act shall be conducted by the Appropriate Commission or an arbitrator designated by it.
Application of the Arbitration and Conciliation Act, 1996: Directs that the provisions of the Arbitration and Conciliation Act, 1996 shall apply to such arbitrations, subject to the provisions of this Act.
Supremacy Over Private Contractual Arbitrations: Overrides private commercial arbitration agreements where the statute assigns dispute resolution exclusively to the Commission.
Key Landmark Precedents:
Gujarat Urja Vikas Nigam Ltd. v. Essar Power Ltd. (2008) 4 SCC 755: Landmark ruling: Supreme Court held that Section 86(1)(f) read with Section 158 is a special law that overrides Section 11 of the Arbitration and Conciliation Act, 1996; the Chief Justice of a High Court has no power to appoint an arbitrator in disputes between licensees and generating companies.
PTC India Ltd. v. CERC (2010) 4 SCC 603: Affirmed that statutory arbitration under the Electricity Act is an integral facet of specialized regulatory dispute resolution.
Energy Watchdog v. CERC (2017) 14 SCC 80: Affirmed that regulatory dispute resolution mechanisms maintain national contract sanctity.
Courtroom Practice & Strategic Litigation Guidance:
In disputes between a generating company and a distribution licensee, never file a Section 11 petition before the High Court seeking arbitrator appointment; Essar Power definitively settles that the petition is non-maintainable and must be filed before the Commission under Section 86(1)(f) / Section 158.
Legal Commentary & Landmark Judgments: Section 158
Section 158 of the Act regulates arbitration under the Act, providing that where any matter is directed to be determined by arbitration, it shall be determined by the Appropriate Commission or by an arbitrator appointed by it.
In disputes between a generating company and a distribution licensee, never file a Section 11 petition before the High Court seeking arbitrator appointment; Essar Power definitively settles that the petition is non-maintainable and must be filed before the Commission under Section 86(1)(f) / Section 158.