HETAUDA, JAN 27 -
The Patan Appellate Court has issued a stay order against the Nepal Electricity Authority (NEA)’s decision to seize the security deposit of Sino Hydro Corporation.
NEA’s decision had come after Sino Hydro unilaterally withdrew from the civil work contract of Kulekhani III hydro project.
A single bench of Justice Surendra Bar Singh Basnet on Wednesday issued the stay order in favour of Sino Hydro until the next decision. The company had moved the court seeking its intervention over NEA’s decision two weeks ago.
Following its decision, NEA had also written to Himalayan Bank Limited, where Sino Hydro has deposited the security amount worth Rs 50 million, asking the bank to facilitate the confiscation of the deposit.
Prabin Rajbhandari, coordinator of Sino Hydro, said the company had filed the application in the court to safeguard its security deposit. The company is well aware of the NEA Act that only allows the power utility to discontinue the contract, he said.
Posted on: 2012-01-27 08:52