A Division Bench of the Kerala High Court has dismissed an appeal filed by G.J. Eco Power Private Limited challenging the cancellation of a contract awarded to the company by the Kochi Corporation for the establishment of the waste-to-energy plant at Brahmapuram.
The appeal was filed against a single judge’s verdict rejecting the company’s plea to quash the cancellation order issued by the corporation. The company had also challenged the Government Order granting approval for executing the contract. The contract was cancelled on grounds of delay in financial closure and commencement of work.
The company contended that one of the reasons for the delay was the non-formulation of a mechanism for payment of energy charges in excess of what was fixed by the Kerala State Electricity Regulatory Commission. There was confusion over the 75% energy charges to be paid by the corporation. Besides, the corporation had not complied with the condition of handing over the possession of the land to the company, it submitted.
Milestones
The government and the corporation contended that the company had failed to achieve various milestones in accordance with the provisions of the concession agreement, and in spite of an opportunity given to the company, it had not made any earnest efforts to make the project a reality.
