Sindh High Court has issued notice to Pakistan Petroleum Limited (PPL) for June 8, 2006, in a declaratory and damages suit of a petroleum gas company against termination of contract by PPL.
Wak Ltd, a bottling liquefied petroleum gas company, under the name of 'Wakgas', submitted in its petition that it had entered into an agreement with PPL in 1990, which expired in 2000 but was subsequently renewed on same terms and conditions.
The plaintiff 's counsel, Nafees Siddiqui, said that the defendant on March 9, 2006 without discussing with the plaintiff sent a draft agreement for renewal of the contract for three years on profit sharing basis, and subsequently the plaintiff agreed to accept the terms and conditions of the profit sharing basis.
However, on May 11, 2006, the counsel submitted, a letter was sent by PPL to the plaintiff stating that plaintiff's agreement could not be renewed whereas the signed agreement was already delivered by PPL on May 12, 2006.
He said that an advertisement was given in national dailies by PPL inviting offers from licensed LPG companies for the quota within ten days of publication, but surprisingly on May 13 the supplies of plaintiff were disconnected and the same was being supplied to other companies without even waiting for 10 days after advertisement.
The counsel said that the defendant with ulterior motive and mala fide intention did not renew that agreement and the same was given to other company without merit and transparency.
He further submitted that PPL despite being subject to compulsory and overriding provisions on public procurement contained in the Public Procurement Rules and PPRA Ordinance did not follow prescribed criteria for open and competitive tendering in seeking to award plaintiff's portion of gas to another bidder without following due process and rules.
He requested that contract be renewed for three years as per agreement and for issuing decree against defendant in sum of Rs20,000,000 for the time its supplies remained disconnected. The SHC single bench comprising Justice Zia Pervaiz, after preliminary hearing of the suit issued notice to PPL for June 8.