Court halts Health Minister’s pharmaceutical zone plans

By Lakmal Sooriyagoda
The Court of Appeal has issued an injunction against the Health Minister and State Minister of the Production, Supply and Regulation of Pharmaceuticals 
State Ministry. 
This injunction restrains them from taking any actions that would contravene the Development and Management Agreement. This includes altering the positions of the investor tenants and pharmaceutical zone in Oyamaduwa, Anuradhapura. The injunction will remain effective until March 28.
Petitioner Spectrum Pharmatech 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 such purpose. The petitioner’s mother company, Spectrum Pharmatech Consultants (Private) Limited of Mumbai, India, which was established in the year 1995, is one of the leading pharmaceutical consultant companies in India.

It was submitted to the 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. 
The factories are already being constructed in the zone and the petitioner’s contention to the court was that during the development stages, the petitioner had faced several issues, owing to the economic crisis and Covid-19 pandemic and had sought the intervention of the ministry to take corrective action.

In such circumstances, a threat had arisen in respect to 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 in 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 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 March 01, 2024. 
Considering the submissions and all matters placed before the court, Justice D.N. Samarakoon granted the injunction sought in the petition, against the ministers. The court issued notices on the respondents, returnable for March 28.
Counsel Nishan Sydney Premathiratne, with Counsel Sidath Gajanayaka and Nimashi Fernando, instructed by Sarravanan Neelakandan Law Associates, appeared for the petitioner.