SUPER Industrial Services (SIS) scored a minor victory in the Privy Council yesterday after this country’s highest appellate court dismissed an appeal by the National Gas Company (NGC) which challenged a decision to strike out the gas company’s multi-million lawsuit.
However, hours after the Privy Council ruling, the NGC obtained a new interim injunction for the freezing of $180 million of SIS’ assets to preserve its $400 million dollar claim against the contractor and Rain Forest Resorts Ltd (RFRL), this as yesterday’s Privy Council ruling would have lifted a previous freezing order of SIS assets.
Although ruling that the position NGC found itself in, when it failed adhere to provisions of the Civil Proceedings Rules (CPR) in the prosecution of its claim, was “unexpected and undeserved,” the five British Law Lords dismissed NGC’s appeal.
They left it up to the state-owned gas company to proceed with another relief from sanctions application it filed in March, last year, to prevent its case from being entirely struck out. This application comes up for hearing on December 13.
A statement from NGC said yesterday’s freezing application became necessary because of the Privy Council’s interpretation of the procedural rules on automatic striking out of cases. NGC also said the Privy Council’s ruling did not affect the separate arbitration proceedings, which are ongoing.
SIS attorney Ramesh Lawrence Maharaj, SC, said yesterday’s application by NGC meant, “they are contending that although they did not comply with the rules of the court, and the claim was struck out, the court should exercise its discretion to give it new life.”
Maharaj said yesterday’s Privy Council’s ruling also means that NGC is liable to pay SIS and RFRL’s costs as well as substantial compensation to the companies because of the claim and the freezing order.
He said the case brought into focus the actions, and inaction, of state boards and public authorities in embarking on litigation against individuals.
The dispute between the parties started in 2015 after delays in the US$162,055,318.77 project, which was due to be completed on October 21, 2016. The contract was eventually terminated on November 24, 2016, after SIS reportedly informed NGC it was unable to continue with the work.
ORIGINAL STORY:
STATE-owned National Gas Company has lost an appeal in its multi-million claim against Super Industrial Services (SIS) and another company as the Privy Council today dismissed an appeal in which it challenged a decision to strike out its lawsuit on the ground that it failed to meet strict timelines for civil cases set in the Civil Proceedings Rules (CPR).
In February last year, the Court of Appeal, in a majority ruling, agreed with SIS’ contention that the judge was not actively managing the case when NGC failed to adhere to the rules in its prosecution of its claim against SIS and RFRL to set a case management conference after the lawsuit was filed in December 2015, as required by the rules.
In its lawsuit, NGC sought an order to prevent the dissipation assets in the contract dispute over the controversial Beetham Water Treatment Plant.
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NGC had also btained a freezing order up to $180 million against SIS’ assets and an injunction restraining RFRL from dealing with certain assets. The freezing order was granted pursuant to arbitration proceedings which are still ongoing.
The dispute between the parties started in 2015 after delays in the US$162,055,318.77 project, which was due to be completed on October 21, 2016.
The contract was eventually terminated on November 24, 2016, after SIS reportedly informed NGC it was unable to continue with the work.
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"NGC loses SIS appeal"