CEB issued with enjoining order for violating PPA

On 22nd July 2020, the Commercial High Court issued an enjoining order against Ceylon Electricity Board (CEB) in respect of a dispute under the standardised power purchase agreement between Nirmalapura Wind Power (Pvt) Ltd and CEB which had been entered into in 2008. 

The plaintiff, Nirmalapura Wind Power (Pvt) Ltd is a joint venture between Hayleys Aventura (Private) Limited (formally known as Hayleys Industrial Solutions (Pvt) Ltd), Hayleys PLC and Wind Force (Pvt) Ltd, 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 2nd June 2020 and 22nd June 2020 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 CEB was 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 matters set out in CEB’s letters dated 2nd June 2020 and 22nd June 2020. 

The plaintiff was represented by President’s Counsel Dr. Harsha Cabral who appeared with Attorneys-at-Law Nishan Premathiratne and Pravi Karunaratne instructed by Messr. Julius & Creasy Attorneys-at-Law. 

The CEB is required to appear before the Court on 4th August 2020 and the enjoining order is in force until such date.