Commercial High Court issues enjoining order against CEB for violating PPA with Hayleys-led wind power firm

The Commercial High Court last Wednesday issued an Enjoining Order against the Ceylon Electricity Board in respect of a dispute under the Standardised Power Purchase Agreement between the Nirmalapura Wind Power and the CEB which had been entered in 2008. 

The Plaintiff, Nirmalapura Wind Power Ltd. is a joint venture between Hayleys Aventura Ltd. (formally known as Hayleys Industrial Solutions Ltd.), Hayleys PLC and Wind Force Ltd., which has entered in to an agreement to produce and sell electricity through a 10MW wind power plant situated in Nirmalapura, Puttalam.  The Plaintiff complained to the Commercial High Court through its Plaint that, after having operated over a period of seven years, the CEB through two letters dated 2 June and 22 June is arbitrarily attempting to misinterpret the date of Commercial Operation and thereby attempting to reduce the tariff payable to the Plaintiff. The Plaintiff further pleaded that the CEB is acting contrary to the Agreement between the parties and thereby attempting to withhold money lawfully due to the Plaintiff. As the dispute needs to be referred to Arbitration in terms of the Agreement between the parties, the Plaintiff has already served Notice of Arbitration to the CEB and thus sought an Injunction from Court to prevent CEB from taking any steps on the disputes already referred to Arbitration, until the Arbitral Tribunal is constituted and considers appropriate relief. The Commercial High Court being satisfied on the facts pleaded on behalf of the Plaintiff, issued the Enjoining Order, Notice of Interim Injunction and Summons as prayed by the Plaintiff. As per the Enjoining Order the CEB has been restrained from acting on the matters set out in the CEB’s letters dated 2 June and 22 June.  The Plaintiff was represented by President’s Counsel Dr. Harsha Cabral who appeared with Attorneys-at-Law Nishan Premathiratne and Pravi Karunaratne instructed by Messrs. Julius & Creasy Attorneys-at-Law. The CEB is required to appear before the Court on 4 August and the Enjoining Order is in force until such date.