The three private companies had been assigned the installation of separate power generation plants of various capacity, but the Private Power and Infrastructure Board of the federal government cancelled their licenses, and encashed their performance bonds for 'failure to keep to the target date for completion.'
In the case of the Spencer Powergen, its appeal against the PPIB was declined by the Sindh High Court, while the Lahore High Court accepted the request of the Rupali Power Company ordering the government to refund the performance bond.
The circumstances leading to the cancellation of the Tri-Star contract were different as per the appeal 'did not go ahead on account of the government policy' and also when the PPIB as well as the Karachi Electric Supply Company designated as the purchaser of the product had served a termination notice, the performance bond could not be encashed.
The Tri-Star had, therefore, not only asked for the refund of the money, but also asked for restoration of 'status quo as on the date of the suit.' Attorney General Makhdoom Ali Khan appeared for the Federation, while Barrister Abdul Hafeez Pirzada represented the Tri-Star and Barrister Syed Ali Zafar appeared for the Rupali Power.
The owner of the Spencer Powergen Company, Byram D. Avari, was present as his counsel Muhammad Akram Sheikh was next door before the Third Bench appearing in another case.