The Chief Executive Officer (CEO) of Betamax is « happy » with the outcome. Vikram Bhunjun was reacting to the Privy Council’s ruling in favor of his company. He also said he was « deeply moved » that this 7-year legal battle had come to an end. It should be remembered that the Judicial Committee of the Privy Council ruled in favour of his firm. The Supreme Court’s judgment is, therefore, overturned and the decision of the Singapore International Arbitration Centre is reinstated. As a result, the Mauritian State, through the State Trading Corporation, will have to compensate Betamax to the tune of Rs 4.5 billion for breach of contract. Vikram Bhunjun explained that his lawyers had always been optimistic despite the unfavorable judgment of the Supreme Court.
Yes, this is a judgement that is likely to make history! A colossal sum that the Mauritian State will have to pay to a private company. Indeed, the State Trading Corporation (STC) will have to empty its pockets/safe to honor the judgement of the Law Lords of the Privy Council of London against it.
Betamax had appealed against a decision in favour of STC in the High Court over the termination of its fuel supply contract in 2015. The Law Lords ruled that the arbitrary ruling was entirely legal and enforceable in the Mauritian courts and simply overturned the Supreme Court’s judgment.
The facts of this case, which also had a political connotation, date back to November 2009. The Betamax Company won a contract for the supply of fuel with the State Trading Corporation. The contract was for a 15-year supply to the Grand Peninsula.
Except that in 2015, the new MSM/PMSD/ML government decided to terminate the contract.
According to the clauses of the contract, one could go to arbitration if the contract ended its execution. This is what Betamax did as it had claimed the sum of $150 million before the arbitration. In June 2017, the arbitration decision was that the Mauritian State should pay Betamax some 113 million dollars. The State challenged the validity and constitutionality of this ruling in the Supreme Court. This court ruled in favor of STC in 2019, rejecting the arbitration ruling. But Betamax’s boss, Vikram Bhunjun, did not give up and went to the Privy Council to challenge the Supreme Court’s verdict. The Law Lords ruled that the Supreme Court had got the arbitration ruling wrong and upheld Betamax’s appeal.
