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Thursday, October 18, 2001

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Maharashtra to move London court in Enron case

By Our Special Correspondent

MUMBAI, OCT. 17. The Maharashtra Government will move the London court against an ex-parte stay on all possible legal proceedings challenging international arbitration by the Enron entity, Dabhol Power Company.

The Maharashtra Chief Minister, Mr. Vilasrao Deshmukh, today said the State's lawyers would approach the court within a week to present its side since the court had ruled without hearing the Maharashtra Government.

The announcement comes in the wake of a legal view doubting the jurisdiction of the London court to make such a comprehensive ruling that interferes in the judicial proceedings in the court of another sovereign state. The ex-parte injunction covers all legal proceedings in any court or forum in India. The matter arises out of the State's stand that Enron concealed from its real capability of the power plant and that nullifies the confidential Power Purchase Agreement forcing the State to pay through its nose for buying electricity.

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