HC upholds termination of contract by PMGSY

GK NEWS NETWORK

Srinagar, Jul 13: J&K High Court dismissed an LPA of a construction company seeking quashment of termination of contract order by PMGSY Department.
 The company had bagged Rs 1891 lakh road upgradation contract from PMGSY Department.
 Chief Engineer PMGSY (JK-RRDA) Kashmir said the appellant company was allotted upgradation work Achabal-Soumbran-Chattapal road on May 13, 2009, a statement here said.
 As per the terms and conditions of the contract, the work was to be completed within 18 months.
 On the failure of the appellant company to complete the work within the stipulated period, the PMGSY Department had issued a communication informing the company that the contract was terminated due to its failure to complete the work.
 The department thereafter had floated fresh tender notice to re-allot the contract.
 Aggrieved, the company had approached the court of Principal District Judge Anantnag with an application against the order of the department, which however was dismissed by the court.
 The statutory appeal filed against the dismissal of the application was also dismissal consequent upon which the LPA was filed by the appellant company before the High Court.
 A Division Bench of the High Court after hearing the parties dismissed the LPA on July 10 paving way for PMGSY Department to invite fresh tenders to re-allot the work.
 “The judgment serves as an eye opener for those PMGSY contractors who are not adhering to the time schedule,” the Chief Engineer said.

Lastupdate on : Fri, 13 Jul 2012 21:30:00 Makkah time
Lastupdate on : Fri, 13 Jul 2012 18:30:00 GMT
Lastupdate on : Sat, 14 Jul 2012 00:00:00 IST



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