Supreme Court Schedules Hearing on Multi-Million Claim by Chinese Contractor in Chamelia Hydropower Case

Kathmandu. A hearing date has been set for the case filed by the Chinese contractor company, China Gezhouba Group and Pizdum Pingao JV, claiming millions in dues. The hearing is scheduled before a joint bench of Supreme Court Justices Sunil Kumar Pokharel and Meghraj Pokharel.

The Chinese contractor company had filed a writ seeking the implementation of the decisions made by the Patan High Court and the Kathmandu District Court. Previously, on 2081 Chaitra 3, a single bench of Supreme Court Justice Balkrishna Dhakal had issued an interim order restraining the implementation of the decisions made in favor of the Chinese contractor company by the District and Patan High Courts.

The Chinese contractor company, China Gezhouba Group and Pizdum Pingao JV, had filed cases in various courts in Nepal and in international arbitration, demanding over NPR 800 million in payment from the Nepal Electricity Authority (NEA). Both the lower courts in Nepal and the international arbitration ruled in favor of these companies.

Just as the Nepal Electricity Authority was preparing to appeal against the decisions of both levels of courts and the international arbitration in the Supreme Court, the companies attempted to enforce the Patan High Court's decision and the Kathmandu District Court's decision to claim payment and freeze the bank accounts of the NEA. However, the path to immediate payment and bank account freezing was closed when the concerned party from the Authority filed a case in the Supreme Court at the last moment.

Regarding the decision made in favor of Pizdum Pingao JV, the Supreme Court ordered, “Do not implement or cause to be implemented the decision made by the arbitration tribunal on 18 May 2023 and the decision made by the Patan High Court upholding that decision, and the decision made by the Patan High Court on 2081-5-30 upholding that decision.”

Furthermore, concerning the decision in favor of China Gezhouba Group, the Supreme Court's interim order stated, “It appears that the petitioner has primarily raised the issue of the statute of limitations in filing the writ petition against the decisions of the arbitration tribunal and the Patan High Court, and given the existence of a situation where the petitioner would suffer irreparable loss if the said decision is implemented before the final decision of this petition, do not implement the decision made by the arbitration tribunal on 17 September 2023, dated 2081-3-16, and the application no. L.No. 1399-5400 of the Kathmandu District Court until the final decision of the present petition.”