Court halt CPC’s LPG sales bids
Wasantha Ramanayake
The Supreme Court yesterday stopped the bidding process for the sale
of Ceylon Petroleum Corporation (CPC) produced Liquid Petroleum Gas
(LPG) until February 18, in the Fundamental Rights application filed by
Laugfs Gas Lanka Ltd.
The court also extended until final determination of the rights plea,
the existing agreement between the petitioner company and the CPC to buy
CPC produced LPG, due to lapse in January next year. The order was a
sequel to an application by the petitioner company.
The Bench comprised Chief Justice Sarath N. Silva PC with Justice Ms.
Shirani Thilakawardane and Justice Andrew Somawansa.
Petitioner Laugfs Gas Lanka Ltd. complained to the court that the CPC
had called for bids to sell CPC produced LPG, when the agreement between
Lagufs would end in January next year, to the Shell Gas Company,
creating a monopoly in LPG market, that would be detrimental to the
petitioner and the LP gas consumers in the country.
President’s Counsel Romesh de Silva for the petitioner submitted that
in terms of the conditions of contract the petitioner was the only local
company that had the necessary infrastructure such as road of tankers
and storage tanks to deal with LPG other than the Shell Gas company
which was not a local company.
The CPC should have discussed the prices with the petitioner without
calling bids since the only competitor was Shell company which was not
eligible for the bidding. President’s Counsel Romesh de Silva appeared
for the petitioner. The hearing was fixed for February 18. |
