Business health

AirTech Engineering wins Rs. 13m in arbitration case

Sarath Malalasekera

Colombo High Court Judge Upali Abeyratne dismissed an application by Lanka Hospitals Corporation against AirTech Engineering to set aside an award made in favour of AirTech Engineering.

Earlier retired Justice A.S. Wijetunga and President’s Counsel Mohan Pieris awarded Rs.13 million to Claimant-AirTech Engineering after an Arbitration Tribunal.

In a dissenting order retired Justice S.B. Goonewardena awarded in favour of the Lanka Hospitals Corporation as Justice Goonewardena did not agree with the majority decision of the Arbitration Tribunal and awarded the respondent Rs.14 million together with interest at 6.86% per annum and a further sum of Rs. 2 million as costs of Arbitration.

The High Court Judge held that the reason given by the petitioner to set aside the Award was not acceptable.

The High Court Judge also held that there were no grounds in law to set aside the Arbitral award made on June 15, 2007.

AirTech Engineering (Pvt) Limited who had done the entire air-conditioning project for the Lanka Hospitals Limited had filed an Arbitration proceedings against Lanka Hospitals Corporation claiming that the Lanka Hospitals Corporation Limited had failed to pay the balance contracted sum due to the air-conditioning project and had failed to pay the parity rate difference for the increased US Dollars conversion rate had wrongfully claimed on the Performance Bond issued by AirTech at the commencement of the contract and that the Airtech Engineering had suffered consequent loss and damages by reason of the said conduct of the Lanka Hospitals Corporation Limited.

Lanka Hospitals Corporation Limited made a counter claim against AirTech Engineering claiming that AirTech Engineering had breached the contract and had failed to perform under and in terms of the contract and claimed a Rs.37 million on account of the said breach, Rs.5 million on account of damages and a sum of Rs.6 million on account of the loss incurred by reason of Airtech Engineering’s failure to comply with the contract and a sum of Rs.675,000 per month from March 2003 together with interest on the said sums.

In the majority award made by retired Justice A.S. Wijetunga and President’s Counsel Mohan Pieris, the Award Tribunal rejected the contention of Lanka Hospitals Corporation and stated that the claimant-AirTech Engineering is entitled to its claim for the balance payment due under the contract, is entitled to the value of the Performance Bond which had been wrongly claimed by Lanka Hospitals and costs of Arbitration.

The Arbitral Tribunal further held that the claim to the Performance Bond that had been made by Lanka Hospitals Corporation well after the commencement of the arbitral proceedings was wrongful and that AirTech Engineering suffered loss and damages as a result.

On this the tribunal awarded AirTech Engineering Rs.4.2 million together with interest at 24% per annum from June 2004 till payment in full.

The Tribunal further awarded AirTech Engineering Rs.4 million together with interest thereon in a sum of Rs.900,000 and further interest thereon from July 2004 at the rate 1% above the legal rate as determined by the Central Bank of Sri Lanka till payment in full.

AirTech Engineering Limited further awarded a sum of Rs.2 Million being the retention withheld by Lanka Hospitals Corporation Limited and a sum of Rs.2 million as costs of Arbitration.

V. K. Choksy instructed by Amal Jayasekera appeared for AirTech Engineering.

Sri Lanka to host regional anti-tobacco talks

Sri Lanka has offered to host the consultations of the South-East Asia Regional Group (SEAR) of the World Health Organisation on the Protocol on the illicit trade in Tobacco Products in October 2008.

The offer was made during the First Session of the Intergovernmental Negotiating Body on a Protocol on Illicit Trade in Tobacco Products concluded in Geneva on Friday. Delegates from over 150 countries, observers, organisations and NGOs attended the Conference.

Sri Lanka together with the other members of the SEAR actively participated in the deliberations both at the regional consultative meetings as well as the plenary sessions, in respect of the template of the Protocol on Illicit Trade in Tobacco Products prepared by an expert group appointed by the secretariat of the Convention of Tobacco Control.

During the discussions, Sri Lanka reiterated its position that a protocol of this nature is needed to address the global issue of illicit trade in tobacco products.

Sri Lanka expressed very strong objections to the provisions of the template that proposed the issuance of licences for the sale of cigarettes and other tobacco products over the internet.

Voicing the concern that particularly children and youth have unsupervised and unlimited access to the internet, over which mail order sales could be effected which was against the provision in National Authority on tobacco and alcohol act, Sri Lanka proposed a total prohibition on internet sales.

Sri Lanka further stressed that the mere establishment of a legal framework or a protocol would not suffice to address illicit trade in tobacco products.

The need to have adequate resources for implementation and capacity building in order to achieve the goals envisaged by the protocol was stressed by the Sri Lankan delegation. It was also urged that a comprehensive provisions with regard to vibrant mechanism for information sharing, data protection and safe guard, special enforcement technique, technical assistance, and cooperation in scientific and technological matters, legal and administrative assistance as stressed.

Ceylinco Health Fair at Panadura

Free consultations with doctors, free diagnostic tests, advice and guidance on healthy living and the preparation of healthy food, will be available to the public at the first ever Ceylinco Health Fair which takes place in Panadura on March 1.

Organised by Ceylinco Healthcare Services Limited (CHSL), the company that manages centres of excellence for the prevention and management of diabetes and for screening and treatment of cancer, the Fair takes place at the Panadura Town Hall premises and will be open to the public from 9 am to 4 pm.

Intended as an extension of its efforts to promote prevention and early treatment of these diseases and to create greater awareness in suburban areas of the services it provides in these areas, the Fair will provide an extensive range of free medical and lifestyle related information to visitors, its organisers said.

The Ceylinco Diabetes Centre and the Ceylinco Healthcare Centre will each have their designated stalls at which specialist doctors would be available for discussions and to seek advice and information. A series of live discussions led by doctors and other experts, as well as cookery demonstrations are also planned.

On offer to visitors free of charge are blood glucose checks, body mass index (BMI) checks, eye tests and advice on key areas such as diet plans, exercise, foot care and breast care and information on well man and well woman clinics.

Presentations lined up for the day cover subjects such as ‘Correct use of medication in chronic diseases,’ ‘Diabetes and complications,’ and ‘Common cancers in Sri Lanka.’

These will be made by leading medical professionals.

A cookery demonstration by chef Loiyd Opatha and a demonstration and talk on exercise have also been scheduled.

“This is a great opportunity for health-conscious people to get information on several very relevant areas in an informal, fun-filled atmosphere,” a spokesperson for the centre said. “We plan to conduct several such events in suburban areas in the course of the year.

Food and drink outlets and a children’s play area will allow the visitors to relax and get the maximum benefit, he said.