The Lahore High Court on Thursday cancelled two contracts for sale of scrap worth Rs 92 million which were singed by Pakistan Railway with M/s Lasani Group in violation of rules and regulations. Justice Syed Mansoor Ali Shah passed the order on a petition filed by Iqbal Majeed owner of Steel Re-rolling Mills against Railway authorities. Besides canceling contract, the court ordered railway authorities to negotiate with the petitioner factory and award the said tenders/contracts to highest bidder an open bid. The petitioner had named Pakistan Railway (PR) federal secretary, chairman, general manager, controller of stores PR and M/S Lasani Group.
Through his counsel the petitioner told the court that he had participated in tender for sale of scrap invited by PR through sealed tender bids after depositing earnest money of Rs 8.9 million on December 29, 2010. He said the sealed bids were opened on December 30, 2010 and the petitioner was highest bidder in two tenders, worth Rs 92 million, against others. He said the respondents later decided to award the tender on basis of negotiations instead of sealed bids which could be done after negotiating with the highest bidder first, per tender conditions.
The petitioner contended that he was entitled to be called for negotiations and on his refusal the respondents could offer the tender to the person of their choice. He submitted that the respondent officials with ulterior motives did not invite him for negotiations on the pretext that the money deposited by him was shorter than required.
He contended that the respondents postponed the negotiation proceedings scheduled on February 7, 2011, so that, the petitioner be kept away and awarded the tender to M/S Lasani Group, second highest bidder. The petitioner prayed the court to cancel the tenders/contracts and directions be issued to accept bids offered by him and negotiate and on his refusal, may award contract to any other person.
LHC cancels railway scrap contracts worth Rs 92m
