Power deal with PDB does not fall under Bangladesh HC jurisdiction: Adani Power
Citing the PPA, it says any dispute between the parties is to be resolved through the Singapore International Arbitration Centre (SIAC), which is also not subject to the jurisdiction of Bangladeshi courts
India's Adani Power has said its Power Purchase Agreement with the Bangladesh Power Development Board does not place the company under the jurisdiction of the Bangladesh High Court, according to a statement issued tonight (19 November).
The statement, released by 5W Communications on behalf of Adani Power, came in response to an injunction by the High Court preventing India's Adani Group from proceeding with arbitration in Singapore regarding unpaid bills under a power purchase agreement with Bangladesh.
5W Communications handles public relations for Adani Power.
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"We shall not be in a position to appropriately comment as we do not have the opportunity of reviewing the purported order of Hon'ble Bangladesh High Court," the statement said.
It added that, according to the PPA, any dispute between the parties is to be resolved through the Singapore International Arbitration Centre (SIAC), which is also not subject to the jurisdiction of Bangladeshi courts.
In its order, the High Court said today that the arbitration must remain suspended until the committee it appointed to scrutinise the agreement and investigate potential irregularities submits its findings.
Barrister M Abdul Kaiyum, who filed the petition on 12 November last year, challenging the legality of the 5 November 2017 power purchase agreement with Adani Power, said that despite being a foreign company, it falls under the jurisdiction of Bangladesh's legal framework as it is a party to the deal and the fifth defendant in the case.
On 19 November last year, he sent a legal notice to the Bangladesh Power Development Board (BPDB) chairman and energy secretary to review or cancel the agreement with Adani.
After today's High Court order, the petitioner told reporters that if Adani starts arbitration in Singapore before the investigation report, it would undermine the importance of the probe. He alleged that the deal with Adani involved multiple irregularities.
