Coal miner Banpu has been ordered to pay 1.5 billion baht in compensation to former partner Siva Nganthavee for the use of information about the coal-fired Hongsa power plant project in Laos.
The Supreme Court on Tuesday ordered Banpu, one of Asia’s largest coal producers, to pay the plaintiff, Mr Siva and his Thai-Lao Lignite Co, the 1.5 billion baht plus annual interest at 7.5% dated back to when the suit was filed in July 2007.
In 2013, the Civil Court had ordered Banpu to pay more than 31 billion baht in damages to Mr Siva for “deception’’ in its partnership to develop a coal mining and power plant project in Hongsa, Laos.
Banpu appealed the verdict and filed lawsuits in the Civil Court seeking damages of 4 billion baht from Mr Siva.
On Sept 8, 2014, the Appeals Court overturned the Civil Court’s order that Banpu pay compensation to the plaintiff.
The court ruled that Banpu proceeded legally with the power plant venture with the Lao government after the partnership split up, so Banpu was not required to pay compensation.
Hongsa Power Company is a joint venture between Banpu Power Limited (BPP), Ratchaburi Electricity Generating Holding Plc and the Lao government.
Mr Siva’s Thai-Lao Lignite Co was granted a concession by the Lao government to develop the Hongsa project in 1994, and in 2005 it brought Banpu in as a partner. In September 2006, Laos notified Thai-Lao Lignite it was cancelling the contract. Two months later it awarded a new concession to Banpu.
Mr Siva argued Banpu used information gained from their partnership to misinform the Lao government, leading to the termination of the contract.
Mr Siva’s lawyer Adul Raksanit said he was satisfied with the final outcome, as the court found the plaintiff had been wronged.
He would consider filing suits against individuals for using information about the power plant project.
Banpu's lawyer, Kasem Pumpuang, said his client was also satisfied with the ruling. He believed the Supreme Court's decision would have no effect on Banpu share prices.
BANPU shares sank to a low of 23.60 baht before picking up to 23.90 baht, up 70 satang, at 2.56pm on Monday.