A high court has ruled in favour of Grenlec, who is fighting a constitutional matter with government.
The court has denied government’s request to halt proceedings on the matters contested by Grenlec, which challenges the constitutionality of the 2017 amendments to the Electricity Supply Act.
The high court has denied Government’s request for a stay in the constitutional claim filed by Grenlec.
The judgement, delivered on Monday by Justice Raulston LA Glasglow in a 44 page document, concluded that such an approach would delay the outcome of the litigation, rather than prevent the multiplicity of proceedings.
Government had applied to the court to stay the constitutional matter filed by GRENLEC, who sought relief from Amendments to the Electricity Supply Act.
Grenlec claimed the amendments violates or will violate its right and have its property compulsory acquired, without compensation.
The Electricity Company is also challenging the requirement set out in the ESA 2017, that every network licensee, with GRENLEC being the only such licensee in the State, shall pay five percent (5%) of its pre-tax profit every financial year to the Social Fund.
Government’s reason for requesting a stay was that both parties are bound by a Share Purchase Agreement and disputes should be resolved by arbitration.
Judge Glasgow ruled that the outcome on the arbitration will have little or no impact on the approach that the court ought to adopt, in resolving whether GRENLEC’s claim that its assets were compulsorily acquired without compensation.
In response to Monday’s decision, Government says it is moving ahead with preparations for the legal hearing.
GBN reached out to GRENLEC for a response, however the company said it will issue a statement on this latest development at a later date.
Government’s legal representatives in this matter were Conway Blake, Linda Dolland and Darshan Ramdhani while Sydney A. Bennett, QC instructed by Dickon Mitchell of Mitchell &Co.. represented GRENLEC.
This latest ruling adds to government’s misery over a string of losses in the justice system, some of which Prime Minister Dr Keith Mitchell blames on government’s legal representatives.