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2011 (2) TMI 1281 - HC - Indian LawsWrit Petition - Conflict between two regulatory authorities - regulatory authority functioning under the Consumer Protection Act i.e., Forward Market Commission (FMC) claims sole right in the matter of forward contract whereas the authority functioning under the Electricity Act, 2003 i.e., Central Electricity Regulatory Commission (CERC) claims exclusive right in the matter of dealing with the trading activities in connection with the electricity including dealing in forward contract - MCX applied to the FMC seeking approval for launching electricity futures contracts, FMC granted its approval - MCX accordingly launched forward trading in electricity - Power Exchange of India Limited (PXIL) challenged the electricity futures contracts formulated by the petitioner, before the CERC on the ground that (i) the CERC has the exclusive jurisdiction over regularising electricity including all forward contracts, futures, etc. (ii) after the enactment of the Electricity Act, 2003, the MCX and the FMC have been denuded of jurisdiction over electricity and (iii) the MCX had commenced launch of trading in electricity futures contracts without any approval of CERC and mere approval FMC had no efficacy in the eyes of law – Held that:- CERC cannot be permitted to have regulations under section 66 and 178(2)(y) by virtue of section 174 of the Electricity Act, to prevail over the provisions of section 14-A and 15 of the forward contracts in such fashion with regard to the futures contracts/forward contracts. domain and jurisdiction of respective authorities/commission is totally different and distinct in every aspect. CERC is a statutory authority being constituted under the Electricity Act, cannot be provided that the power beyond the statutes permitting to do futures, forward, derivative contracts which is admittedly a domain jurisdiction of authorities/commission under the FCR Act. CERC and/or even the Appellate authority under the Electricity Act have no jurisdiction to decide the validity of regulations framed by CERC under section 178 of the Act. It is subject to challenge by invoking judicial power under Article 226 of the Constitution of India
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