Court of Appeal grants injunction against Health Minister, State Minister of Production, Supply and Regulation of Pharmaceuticals

• Spectrum Pharmatech files case over Pharmaceutical Zone in Oyamaduwa, Anuradhapura

The Court of Appeal, yesterday on an application preferred by Spectrum Pharmatech Lanka Ltd., the Zone Developer in the “Suwa Siri Pura” Pharmaceutical Production Zone in Oyamaduwa, Anuradhapura, granted an Injunction against the Minister of Health and State Minister of State Ministry of Production, Supply and Regulation of Pharmaceuticals.

The injunction restrains them from taking any steps to act in contravention to the Development and Management Agreement and the agreement to arbitrate therein in any manner whatsoever. This includes taking any steps to alter the positions with the investor tenants and the Pharmaceutical Zone in Oyamaduwa, Anuradhapura which prevailed as at the 1 March 2024 until the disputes are resolved by Arbitration, effective till the next date.

Spectrum Pharmatech, the Petitioner, as stated in the Petition, is a leading pharmaceutical consultancy company and has been entrusted to develop the Pharmaceutical Zone in Oyamaduwa, Anuradhapura and had entered into Agreements with the Ministry and investor tenants for the same purpose. 

The Petitioner’s parent company, Spectrum Pharmatech Consultants Ltd., of Mumbai, India, which was established in the year 1995, is one of the leading pharmaceutical consultant companies in India.

It was submitted to Court that several disputes had arisen over a period of time in relation to the development of the Zone where the manufacturing Zone is to be built on an 80-acre land and is expected to produce a substantial portion of the total medicinal requirement of the country, while it is also expected to generate over 2000 direct jobs and 5000 indirect jobs. 

Factories are already being constructed in the Zone and the Petitioner’s contention to Court was that during the development stages the Petitioner had faced several issues owing to the economic crisis and the COVID-19 pandemic and had sought the intervention of the Ministry to take corrective action.

In such circumstances, a threat had arisen in respect of the status quo of the entire subject matter relating to the Oyamaduwa Pharmaceutical Zone, where the Ministry was attempting to change the status quo with the investors who had already committed to set up factories at the Zone. 

Any such action would have rendered the whole operation of the Zone futile and would effectively frustrate the whole project. The Petitioner’s position was also that the Petitioner had sought the intervention of the President of Sri Lanka on the matter.

In such circumstances the Petitioner has referred to the disputes to Arbitration by way of a Notice of Arbitration as per the Sri Lankan Arbitration Act of 1995, and the Petitioner sought reliefs from the Court of Appeal to prevent any change to the project and to maintain the status quo prevailing as at 1 March 2024. Considering the submissions and all matters placed before Court, Justice D.N. Samarakoon granted the Injunction sought in the Petition against the Ministers, effective till the 28 March 2024, on which date Notice is 

returnable.

On behalf of the Petitioner, Counsel Nishan Sydney Premathiratne, Attorney-at-Law appeared with Sidath Gajanayaka and Nimashi Fernando, Attorneys-at-Law, on the instructions of Sarravanan Neelakandan Law Associates.