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Shell Gas Lanka, FTC come to settlement

by Indeewara Thilakarathne

The case filed by Shell Gas Lanka Ltd in the Court of Appeal against the Fair Trading Commission (FTC) yesterday ended in an amicable settlement with both parties agreeing to withdraw the case without cost.

The case came up before Justices Shirani Thilakawardana and P.Wijeratne. In this case, Shell Lanka Gas Ltd has cited The Fair Trading Commission as the sole respondant.

In terms of the MOU, Shell Gas Lanka Ltd has agreed to offer its customers who wish to surrender their cylinder a refund of a sum of Rs 1,400 and this shall be made to all customers who have obtained their cylinders on or before June 1,2003 irrespective of the deposit paid.This offer is valid for a period of 6 months.

The Company has also given un undertaking to reduce the price of a 12.5 Kg gas cylinder by Rs 70 and to make a further reduction of Rs 25 with effect from June 15 ,2003 provided that such a reduction will not preclude it from ajdusting its prices thereafter based on its pricing formula and market conditions.

When the case came up for hearing yesterday, both parties informed the Court that they have settled the case and entered into an MOU.The Shell Gas Ltd informed the Court that they are no longer interesting in proceeding with the appeal.An application was made to withdraw the case without cost.Accordingly the Court allowed the application and dismissed the appeal without cost.

D.S. Wijesinghe PC with Chanaka de Silva instructed by Sudath Perera Associates appeared for the Shell Gas Lanka Ltd while Romesh de Silva PC with Palitha Kumarasinghe and Sanjeeva Jayawardana instructed by G.G Arul Pragasam appeared for the Fair Trading Commission.

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