Acting Chief Justice Ian Chang on Monday discharged a Conservatory Order granted to Synergy Inc, allowing the government to take possession of the equipment which was being used to build the road to the Amaila Falls Hydro Project.
According to a press release issued by Attorney General Anil Nandlall yesterday, the Chief Justice had granted an ex-parte Conser-vatory Order after Synergy filed legal proceedings on January 16. That order, it was explained, prevented the government from taking possession of equipment.
Nandlall and Deputy Solicitor General Nareshwar Harnanan appeared for the government while Miles Fitzpatrick SC and Timothy Jonas appeared for the company.
Nandlall, during the case, the release said, submitted that the grant of the Conservatory Order was in effect an injunction against the State and under the provisions of the State Liability and Proceedings Act, No 20 of 1984, no injunction or coercive order can be granted against the State. “The Conservatory Order, therefore, was misconceived,” the release quoted him as saying.
He further submitted that, in any event, even if it was proper to grant such an Order, this was not a proper case, since damages was an adequate remedy and the State can pay any award of damages which may be made subsequently.
Nandlall, according to the release, further argued that the balance of convenience favoured the discharge of the Order. It was pointed out that the government paid for most of the equipment and they were imported into Guyana duty free, therefore, “leading to the conclusion that they were to be used only for the project and for no other reason by the contractor.”
Justice Chang upheld these submissions and discharged the Conservatory Order, thereby allowing the government to take possession of the equipment, the release said, adding that Justice Chang further directed that the equipment be used only on the project and returned to Synergy upon its completion.
The court further ordered that the relevant affidavits be filed so that the substantive Notice of Motion can be heard.
The matter will be heard again on March 28.
Back in 2002, government granted US developer Synergy Inc a licence to build the hydro project on the Kuribrong River.
The licence was later extended in 2004. Synergy Inc then, in 2009, transferred that licence to Sithe Global which is now the developer of the hydro project. Synergy then successfully bid to build the road to the site, but defaulted on the project.
