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THE Court of Appeal has upheld a stay of proceedings in a legal challenge brought by former Cepep contractor, Eastman Enterprises Ltd, over the termination of over 300 contracts by Cepep Company Ltd soon after the April 28 general election.

However, the appellate court overturned the High Court’s order referring the matter to the Director of Public Prosecutions (DPP).

In a written ruling on Eastman’s appeal, Justices of Appeal Peter Rajkumar, James Aboud, and Ricky Rahim found that Eastman was required to comply with the contract’s alternative dispute resolution (ADR) procedure before filing its lawsuit, affirming the trial judge’s decision to stay the claim. The Appeal Court’s decision was delivered on November 21.