TMI Blog1959 (2) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... ectrical energy in Belgaum. It obtained a licence from the Government under s. 3 of the Indian Electricity Act, 1910, authorising it to supply the energy in that area. The respondent, who is the plaintiff in the suit, obtained supply of electricity from the appellant. The respondent felt that he was being overcharged by the appellant for the electricity so supplied. He thereupon filed a suit in the Court of the Civil Judge, Belgaum, on or about the 8th of June, 1955, claiming a refund of the amount paid in excess of what he thought was the legitimate charge. The appellant then applied under s. 34 of the Arbitration Act for a stay of the suit on the ground that the matter was referable to arbitration under the provisions of the Electricity ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or instrument applicable to the licensee shall, in relation to the licensee, be void and of no effect in so far as they are inconsistent with the provisions of this section and the said schedule and Table. (2)........................................................ This section had therefore the effect of incorporating in the licence the terms of these two Schedules and provided that they would prevail over the terms of any previously granted licence or the provisions of the Act of 1910, or any other law, agreement or instrument inconsistent with these Schedules. The Sixth Schedule made new provisions about the charges that a licensee was entitled to realise for the current supplied. Clause XVI of that Schedule contains a provision for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the licensee is to comply with the terms of that Schedule. Therefore all that we get is that the licence which is granted by the Government to a supplier of electricity, like the appellant, is to contain a clause that certain disputes would be referred to arbitration. The licence is an engagement between the Government and the licensee, binding the parties to it to its provisions. It is unnecessary to decide whether this engagement is contractual or statutory, for, in either case it is between the two of them only. An arbitration clause in an instrument like this can only be in respect of disputes between the parties to it. Such an arbitration clause does not contemplate a dispute between a party to the instrument and one who is not suc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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