LAHORE: A Lahore High Court division bench on Monday suspended a single bench order that required the National Transmission and Dispatch Company (NTDC) to pay Rs5.4 billion to two IPPs.

The single bench had directed the NTDC to pay the amount to Lal Pir Power Ltd and Pak-Gen Power Ltd, part of Nishat Group, on account of Liquidated damages. The NTDC challenged the decision through an intra court appeal.

Advocate Taffazul Haider Rizvi argued, on behalf of the NTDC, that the single bench overlooked the genesis of entire dispute that lay in the Power Purchase Agreement (PPA). Therefore, he said, the relief pertaining to contractual disputes could not have been sought in the writ jurisdiction of the high court. The counsel further argued that in writ jurisdiction, detailed investigation could not have been undertaken as PPA had a complete dispute resolution mechanism.

He said the appellant (NTDC) could not be ordered to pay Rs5.4 billion to the IPPs and the matter should have been referred to arbitration under the PPA.

The division bench after hearing preliminary arguments issued notices to the IPPs and suspended the impugned decision of the single bench. Further hearing was adjourned till June 29.

Published in Dawn, May 3rd, 2016