Exat wins “expressway stupid fee” case against CH Karnchang

After 16 years of marathon court battle, the Expressway Authority of Thailand won the court case against construction giant CH Karnchang Pol over the construction of the 55-km Bang Na-Chon Buri expressway.

The Supreme Court has ruled in favour of the state agency by upholding the Appeals Court's decision that Exat, formerly Expressway and Rapid Transit Authority (ETA), needs not have to pay the CH Karnchang-led joint venture the 9.6 billion baht in compensation as ruled by the arbitration committee for the delay in the handover of construction areas to the expressway builders.

The joint venture includes German engineering groups Bilfinger Berger Bauaktiengesellshaft and Dyckerhof & Widmann AG.

The Supreme Court's verdict was read by the Civil Court on June 22. But it was announced by the Office of the Attorney-General yesterday (June 29).

Earlier in 2006, the Supreme Court ruled in favour of then ETA that it did not have to pay CH Karnchang about 6 billion baht in compensation on ground that the contract for the expressway construction was not legally inked and, therefore, it was not binding to ETA.

Two years afterward, CH Karnchang took the case to the Civil Court, demanding 9.6 billion baht in compensation from then ETA, now Exat.

Source: Thai Public Broadcasting Service (Thai PBS)