The Tata Hydro-electric Powersupply Co. Ltd. & Ors. VS. Union Of India

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The Tata Hydro-electric Powersupply Co. Ltd. & Ors. VS. Union Of India

CASE NO.: Appeal (civil) 1005 of 2003

PETITIONER: The Tata Hydro-Electric Power Supply Co. Ltd. & Ors.

RESPONDENT: Union of India

DATE OF JUDGMENT: 05/02/2003

BENCH: M.B. SHAH, B.P. SINGH & H.K. SEMA.

JUDGMENT: J U D G M E N T Arising Out of S.L.P.( C) NO.4123 OF 2001

B.P.SINGH, J.

Special leave granted.

This appeal is directed against the judgment and order of the High Court of Judicature at Bombay dated 5.10.2000 in Appeal No.144 of 2000 whereby the Division Bench of the High Court affirmed the judgment of the learned Single Judge allowing the Arbitration Petition filed by the respondent under Section 34 of the Arbitration and Conciliation Act, 1996 challenging the award of the Umpire dated 30th March, 1998 on the ground of an error of law apparent on the face of the Award.

The appellant-companies are licensees under the Indian Electricity Act, 1910 (hereinafter referred to as "the Act"). A Power Supply Agreement was executed on 7th July 1971 between the aforesaid companies and President of India represented by Central Railways and Western Railways. Under the agreement electric power is supplied to the railways at a number of points on the railways electrified track route for the operation of the railways electric trains services. Clause 20 of the said agreement contains an arbitration clause which reads as under:-

"20.0: In the even...

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