THE AMALGAMATED ELECTRICITY CO., LTD. vs N. S. BATHENA

The Supreme Court held that the arbitration clause in Section 57(1) of the Electricity (Supply) Act, 1948, does not extend to disputes between the licensee and the consumer, as the license is an agreement solely between the licensee and the Government. The Court clarified that the arbitration clause does not create a statutory provision for arbitration of disputes involving third parties, such as consumers. Consequently, the appeal for staying the suit under Section 34 of the Arbitration Act, 1940, was dismissed, affirming the lower courts' decisions.