HC imposes Rs 1 lakh fine on transport company
‘Spend It On Cancer Patients,Orphans’
D A RASHID
Srinagar, Sep 30: Jammu and Kashmir High Court has imposed a fine of Rs one lakh on a private transport company for impeding State Road Transport Corporation (SRTC) to re-tender a contract for supply of trucks as well as for resorting to unholy practice in the contract for reaping financial benefits.
Court of Justice, Mansoor Ahmad Mir, while imposing the costs of Rs one lakh on M/s Ladakh Road Lines directed to utilize the amount for welfare of the orphans or for the treatment of cancer patients.
The petitioner company was earlier supplying trucks to the corporation in terms of a two year contract in terms of a contract which concluded on March 31, 2012.
In Feb 2012, the SRTC invited tenders from eligible private transport campaigns for supply of trucks and the petitioner company offered the commission of 37.10 percent which was highest among the companies which participated in the bidding process.
The SRTC subsequently could not make formal allotment order in favor of the company after it moved Jammu and Kashmir High Court which passed an order on the petition restraining the respondent Corporation to allot the contract formally to the transport company.
The Corporation however granted extension to the petitioner firm for continuing supply of trucks through an order passed on March 31, 2012 on the same terms and conditions contained in the order of contract period of 2010-2012.
Following the extension, the company withdrew its offer which made the respondents to make an order for forfeiture of earnest money deposited by the petitioner firm which ultimately stalled the tender process.
The respondent Corporation went for tenders again and the petitioner emerged as the successful bidder but this time with far less commission offer than the earlier one in which 37 percent was offered.
The Corporation was not satisfied with the percentage of commission offered by the petitioner company was not in the interest of Corporation which decided to go for re-tendering. But the transport company challenged the decision of the Corporation in High Court Seeking directions for quashment of the order calling for fresh tenders.
While dismissing the petition, the court held: “It appears that the writ petitioner utilized all the means to keep on hold supply of trucks to the Corporation for the year 2011-2012 without any contract and only on the basis of orders passed by the corporation,” the court said.
It said: “Despite noticing all the circumstances one wonders how and why respondents allowed the petitioner firm to supply trucks on the basis of a concluded contract”.
Censuring the transport company for reaping benefits at the expense of SRTC, the court held “The petitioner though a successful bidder for the financial year 2012-2014 prevented the respondent SRTC from issuing formal orders by filing a writ petition. He then filed application for withdrawal of the contract which led to the forfeiture of his deposit following which he withdrew his writ petition.”
The court held that given the facts stated, the sole object of the company was to compel the SRTC to continue with the earlier contract saying it wanted an unholy contractual alliance with the corporation.
The M/S Ladakh Road lines was represented by advocate Pranav Kholi while advocate Altaf Haqani and GA Shabir Ahmad Khan represented the SRTC.
Lastupdate on : Sun, 30 Sep 2012 21:30:00 Makkah time
Lastupdate on : Sun, 30 Sep 2012 18:30:00 GMT
Lastupdate on : Mon, 1 Oct 2012 00:00:00 IST
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