A Federal High Court in Abuja on Tuesday gave an order retraining the Bureau for Public Enterprises, BPE, from transferring the controversial Kaduna Electricity Distribution Company, Kaduna Disco, to the preferred bidder, Northwest Power Limited, NPL.
The court order was on the request of the reserved bidder, Leda Consortium Limited, following the refusal of the BPE to invite it to complete the Share Purchase Agreement of the Kaduna DISCO after the failure of NPL to pay the remaining 75 per cent of its bid price after several extensions of the deadline.
According to a copy of the court order seen by PREMIUM TIMES, after listening to the arguments of counsels to the plaintiff and that of the defendant the court ruled both parties should “maintain status quo with regard to the subject matter of the suit pending the determination of the defendant notice of preliminary objection.”
Leda had approached the court after what it termed BPE’s “brazen violation of set contractual obligation” and said BPE seemed set to perpetually extend the deadline for Northwest to complete the payment of the bid price.
In its originating summon, Leda asked the court to declare that the defendant cannot arbitrarily and /or repeatedly extend the time prescribed for payment of the 25 per cent initial deposit considering the sale of the Kaduna Disco and the 75 per cent balance in favour of any or (preferred) bidder without regard to the inputted contract in the bid process on the bases of a uniform rule set by BPE.
It also asked the court to rule that “any belated payment of the bid price Kaduna Disco by any or the preferred bidder after the expiration of the specific time is void as against the reserved bidder and cconstitute a breach of contract duty of the defendant.”
Leda asked the court to issue “an order setting aside or annulling any belated receipt of payment by the defendant of the 75 per cent balance of the bid price from any or the preferred bidder.”
The court ruled that it would hear the defendant’s notice of preliminary objection together with the substantive suit on December 12 2014.