KARACHI, July 25: An appellate bench of the Sindh High Court reserved its judgment on a private power project on Friday after hearing detailed arguments advanced by the counsel for the three parties involved.

Winding up his arguments, Advocate Asim Mansoor Khan strenuously defended the impugned judgment of the single judge in favour of M/s Tri-Star Energy Ltd, who was allowed to set up a power project in accordance with the agreements signed by it with the Private Power Infrastructure Board (PPIB) and the Karachi Electricity Supply Company in the mid-1990s. Encouraged by the government policy to induct the private sector in electricity generation, the company came forward to set up a thermal power project designed to generate and supply 110 megawatts of electricity to the KESC. The project, he said, was all the more necessary in the backdrop of the power shortage faced by the city.

On behalf of the appellant PPIB, Advocate Yawar Farooqui submitted that the board had allowed the respondent company to set up a project in good faith but it proved itself incapable of the task. The agreements signed by it were not honoured. The impugned judgment was rendered without recording of evidence and framing of issues. The single judge did not advert to the fact that the letter of credit opened by the company did not provide for damages if the installation of the plant was delayed, the counsel argued.

Advocate Mohammad Ali Mazhar contended on behalf of the KESC that the impugned judgment suffered from serious infirmities. The plaint was allowed to be amended without the defendants being put on notice to file a fresh written statement. The respondent company violated the power purchase agreement by opening a letter of credit payable in dollars.

The bench, which consisted of acting Chief Justice Azizullah M. Memon and Justice Khalid Ali Z. Qazi, reserved its verdict on the appeal.

Notices in harassment case