The chief justice was hearing a petition filed by Dongfeng Electric International Corporation wherein secretary Railways and other officials were impleaded.
As proceedings started, the petitioner's counsel submitted an application for withdrawing the petition contending that negotiations were in progress with the government for amicable resolution of the dispute.
The Railway officials also placed on record documentation/report regarding performance of 69 locomotives supplied by the company from 2003 to 2008 under year 2001 contract besides intimation of fresh contract of 75 locomotives.
However, the chief justice observed that substantial amount of public money was involved in the matter and it could not be treated as a private dispute.
He observed that the petitioner-company brought a delegation to resolve the dispute and there was good reason to allow it to proceed with settlement/negotiation.
He remarked that in case of failure of such negotiation, the court would proceed and adjourned the matter till September 12.
The petitioner-company through its petition submitted that it got a contract for supply of 75 locomotives to Pakistan Railway on December 31, 2008 after due bidding process. However, the government illegally cancelled the contract in 2013 and sought return of the down payment, it added.
The company pleaded the court to set aside decision of cancelling the contract and also set aside the decision of blacklisting it.