LAHORE: Lahore High Court Chief Justice Umar Ata Bandial Thursday adjourned hearing of a petition filed by a Chinese company against termination of a contract for purchase of 75 locomotives by Pakistan Railways.
The LHC adjourned hearing after petitioner's counsel sought time for obtaining instructions for depositing an amount of US$ 15.77 million received as advance payment to establish bona fide.
The chief justice was hearing the petition filed by Dongfeng Electric International Corporation through counsel Salman Akram Raja wherein the secretary Railways, general manager Railways, director procurement and other were impleaded.
As proceedings started, the petitioner's counsel submitted that the petitioner-company was engaged in many infrastructure projects besides supplying of Railway locomotives, in Pakistan.
He submitted that the company got a contract for supply of 75 locomotives to Pakistan Railways on December 31, 2008 after due bidding process.
He said the Railways disbursed an amount of US$ 15.77 million as down payment for supply of 75 locomotives to the company in June 2009 after a bank guarantee by the company.
However, the Pakistan Railways illegally cancelled the contract in 2013 and sought return of the down payment, he added.
The counsel also mentioned that the Railways had started process of blacklisting the company without any reason.
The counsel prayed the court to set aside Railways decision of cancelling the contract and also set aside the letter for blacklisting the company.
He also pleaded the court to stop respondents from encashing the bank guarantee provided by the company.
But, the chief justice observed that four years had elapsed and the petitioner-company did not protested the delay with either an offer to refund the down payment or an offer to forfeit the same on account of losses suffered.
He remarked that the petitioner needed to clarify his position that it was not unduly enriching itself with money without bringing it in the notice of the government of pakistan.
The chief justice further observed that the court assist the petitioner who approach it with clean hands.
The court adjourned further hearing till June 14 after petitioner's counsel sought time to seek instructions from his client.
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