The Appellate Division of the Supreme Court on Thursday ordered the project implementing foreign companies to maintain status quo over transferring the project鈥檚 major shareholder鈥檚 shares to two other companies.
Funding bank lawyer Mustafizur Rahman Khan said that the outstanding works of the Dhaka Elevated Expressway project would remain suspended as the two Chinese banks funding the project refused to disburse the further instalment of the loan unless payment of loan interest by Thailand-based Italthai Development Public Company, the alleged defaulting implementing company.聽聽聽
The Thailand-based company owns 51 per cent share of the project, while China Shandong International Economic and Technical Co-operation Group and Sinohydro Corporation Limited own 34 per cent and 15 per cent shares of the project respectively.
The two Chinese companies are demanding transfer of the Thailand-based company鈥檚 share to them as the Thai company defaulted in 2024 to pay two Chinese Banks鈥� interest of the loan.
The Italthai company filed a case with the Singapore International Arbitration Centre challenging the Chinese companies鈥� demand for transferring Italtahi鈥檚 share to them due to its failure to pay the interest to bank, as per the loan condition.
Italthai company also filed a petition with the High Court seeking an injunction to restrain the Chinese companies from claiming Italthai鈥檚 shares until the Singapore court disposed of the arbitration case.
On May 12, the High Court in a verdict rejected Italthai鈥檚 prayer, stating that the company鈥檚 petition was not maintainable as the similar matter was pending with an arbitration court in Singapore.聽聽聽聽
Italthai later challenged the High Court鈥檚 verdict by filing an appeal with the Appellate Division.
On Thursday, the Appellate Division asked the disputing companies to maintain status quo over the ownership of the shares until May 30.
The eight-judge bench, headed by chief justice Obaidul Hassan also set May 30 to hold further proceedings of Italthai鈥檚 appeal.
It asked the Italthai company to file a regular petition seeking permission to appeal against the High Court with the verdict鈥檚 full text.
Lawyer Mustafizur Rahman Khan, told 抖阴精品 his bank clients would no more disburse the remaining amount of the loan for the Dhaka Elevated Expressway project unless the defaulted Italthai company paid interest of the loan.
The three companies signed loan agreements with the China Exim Bank and Industrial and Commercial Bank of China in March 2019.
The 46.73-kilometre expressway project connects Hazrat Shahjalal International Airport with the Dhaka-Chattogram Highway at Kutubkhali near Jatrabari.
The project was undertaken in 2011 to reduce traffic congestion in the capital and save time and money.
It was revised in 2013 due to alignment changes, and construction began in 2015 at an estimated cost of Tk 8,940 crore.
The First Dhaka Elevated Expressway Company Ltd, a joint venture of the three companies, is implementing the project under the supervision of the Bangladesh Bridge Authority.