*ISLAMABAD .: *In pursuance of London High Court order, Pakistan has paidRs66.7 million litigation cost to nine independent power producers (IPPs).
National Transmission and Dispatch Company (NTDC) had approached the LondonHigh Court against international tribunal’s award regarding payment ofalmost Rs11 billion to IPPs.
After two days of proceedings, the NTDC withdrew its case but the highcourt charged cost on the company, which had not been paid.
It is learned that following the order dated May 25, 2018, of the LondonHigh Court, the Court, inter alia, ordered the NTDC to pay £400,000 to theIPPs on account of costs by June 29, 2018.
“The NTDC made payment to the IPPs by the said date; however, the amountsso paid were unallocated and it is only after written confirmation fromNTDC’s solicitors in London (Howard Kennedy) and internal working the IPPswas able to trace the amount. Interestingly, till today, NTDC has notconfirmed in writing directly to the IPPs that the amount paid was onaccount of costs incurred in London High Court,” sources revealed to *TheExpress Tribune*.
Last year, the London Court of International Arbitration (LCIA) haddirected Pakistan to pay around Rs11 billion claims of nine IPPs.
A senior official however, informed that NTDC didn’t pay the payment, it isexpected that ultimately, matter will be resolved through negotiation.
He said that NTDC challenged the award of payment before the court butafter two days of arguments, the counsel for NTDC withdrew the case but thecourt awarded £400,000.
Legal experts are however expressing concern over the poor legal strategyof NTDC.
“The IPPs are entitled to a final anti-suit injunction, continuing interiminjunction granted by Males J, on the entirely straightforward basis thatthe seat of the arbitration is in London. NTDC is to be restrained on apermanent basis from challenging the Partial Final Award in proceedings inLahore, Pakistan, or anywhere other than England and Wales,” says thejudgment, authored by LCIA judge Justice Phillips over the dispute betweennine IPPs and the NTDC.
The IPPs have been generating and supplying electricity to the nationaltransmission company –the exclusive purchaser of electricity from the IPPs,which is owned and controlled by the federal government.
The nine companies in the present case are Atlas Power, Liberty Power Tech,Nishat Chunian Power, Nishat Power, Hub Power Company, Saif Power, OrientPower Company, Sapphire Electric Company, and Halmore Power GenerationCompany.
Currently, Pakistan is facing litigation before international tribunals inmore than 30 cases.
One section of lawyers is urging Chief Justice of Pakistan Mian Saqib Nisarto take notice over award of billions of rupees damages to the country indifferent cases.
The lawyers say that public should be aware that why billions of rupees ofawards are being given against Pakistan.
The next government will have to deal with the fallout of majorlegal battles in world legal forums, paying billions of dollars in damagesin several controversial matters.
According to experts, the country would have to pay astronomical sumsbecause of judgments of the Supreme Court led by former chief justiceIftikhar Muhammad Chaudhry.