M/S. TRANSMISSION CORPORATION OF A.P.LTD vs M/S. LANCO KONDAPALLI POWER PVT. LTD.

The Supreme Court addressed the jurisdictional conflict arising from a Power Purchase Agreement containing an arbitration clause under Article 14 and the regulatory framework established by the Andhra Pradesh Electricity Reform Act, 1998 and the Electricity Act, 2003. The Court held that the arbitration clause must be honored, and the jurisdiction of the Andhra Pradesh Electricity Regulatory Commission does not negate the parties' agreement to arbitrate under the Arbitration and Conciliation Act, 1996, specifically Section 9 and Section 11. Consequently, the Court directed that the arbitration proceedings should continue as per the agreement, upholding the principle of party autonomy in arbitration.