Thursday, September 20, 2018

IN BIZ FOR NOW

HC allows firm to operate cab services at Central for 6 months


TIMES NEWS NETWORK

Chennai:20.09.2018

Noting that nonoperation of cab services at the Chennai Central Railway Station would lead to exploitation by other operators, including autorickshaws, the Madras high court permitted the current contractor to continue the service for six more months while calling for a fresh tender in the meantime.

Justice S M Subramaniam passed the interim order while rejecting pleas moved by Bharathi Cabs and Fast Track to quash the tender awarded to ANI Technologies.

According to the petitioner, tender notification was issued by Southern Railway on August 2, 2017 for parking and operation of call taxi stands at Moore Market complex in Chennai Central Railway Station.

The reserve price was fixed as ₹2.17 crore exclusive of GST for one year. Tender was finalised in favour of Ani Technologies for ₹60 lakh originally and subsequently, Southern Railway enhanced it to ₹70 lakh through negotiations, the petitioners said.

Accordingly, the acceptance certificate was issued on October 26, 2017 in favour of the company. But on account of status quo granted by the high court, the company was unable to operate services.

“On account of the interim order, Ani Technologies was unable to operate cab services. Allowing the company for a further period of one year will also cause loss to Southern Railway. Entirely preventing the company from operating cabs as per the selection will cause prejudice to the company. Thus, in the interest of all concerned, a balanced approach is required to protect the revenue of Southern Railway and honor the process of tender already conducted. Ani Technologies is permitted to operate for a period of six months,” the judge said.

According to the petitioners, Southern Railway finalised the tender far below the original reserve price. Though the petitioners had not participated in the tender process they had loco standi to challenge the tender because of the revenue loss to Southern Railway, their counsel said.

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