The case of cancellation of railway contract, the Chinese company did not get relief from the High Court

new Delhi: The contract awarded to a Chinese company for the signal and telecommunications work of the Eastern Dedicated Freight Corridor of the Indian Railways was canceled. The Chinese company had filed a petition in the Delhi High Court against this decision. But the Chinese company has not been relieved by the Delhi High Court.

This petition was filed on Thursday, which was heard in the Delhi High Court. The Chinese company argued in the High Court that the Indian Railways had terminated the contract unfairly.

The Chinese company said that under this contract, it had to work on the 417 km long corridor between Kanpur and Mughalsarai for signaling and telecommunications. For this, a contract worth Rs 471 crore was given, which was abruptly terminated on 03.07.2020.

Therefore, the Chinese company had approached the High Court to direct DFCCIL to stop redeeming the bank guarantee. The High Court has refused to give any direction to DFCCIL and has posted the next date in the case.

Indian company HFCL will have to provide information before redeeming the bank guarantee
The Indian company HFCL had taken a sublet from the Chinese company to carry out the signaling and telecommunications work of the 417 km long corridor between Kanpur and Mughalsarai. The Delhi High Court has said in its order that whenever the Chinese company redeems the bank guarantee given by the HFCL, the Indian company will have to inform the HFCL 5 days before that.

Actually, the Indian company HFCL had also given bank guarantee under the contract. According to the contract, the Indian company had given two performance bank guarantees and two advance bank guarantees to the Chinese company. The 417-km long corridor between Kanpur and Mughalsarai had some portion of the work related to signaling and telecommunications from the Chinese company in the sublet. Now that DFCCIL has canceled the contract given to the Chinese company, the Indian company HFCL was afraid that the sugar company should redeem their bank guarantee somewhere. So the Indian company moved the Delhi High Court. The High Court has told the Chinese company that the bank will give information to the Indian company 5 days before cashing the guarantee.

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