High Court orders firm to liquidate 10% of contract amount to NHIDCL

Our Correspondent
Kohima, Sep. 29 (EMN): The Kohima Bench of the Gauhati High Court has directed M/S Oasis Techno Construction Limited to liquidate 10% of the total contract amount to National Highways and Infrastructure Development Corporation (NHIDCL) within one month, following the firm’s abandonment of Package-III of the four-lane road between Kohima and Dimapur.

A bench comprising justices LS Jamir and Songkhupchung Serto passed the order, on Sep. 28, in public interest litigation (suo moto) regarding the four-laning of road between Kohima and Dimapur.

“Taking into consideration the lackadaisical, irresponsible behaviour as well as making deliberate false promises on oath before this Court, we direct the respondent No. 12 (M/S Oasis Techno Construction Limited) to liquidate 10% of the total contract amount (INR 111.19 crore) to the NHIDCL authorities within a period of one month from today”, the court order stated.

The work order of Package-III (14.210 km) was issued as early as Sep. 1, 2021, for an amount of INR 111.19 crore and the time stipulation to complete the work was within 12 months.

“However, nothing has been done and from the various affidavits filed by the authority engineer we have seen that respondent No. 12 is not serious for the execution of the work with regard to Package-III”, the court noted.

It also directed the NHIDCL authorities not to release any pending dues including the bank guarantee to the respondent of the firm without the leave of the Court.

It summoned all the three directors of M/s Oasis Techno Construction Limited to be present in the Court on the next returnable date to enable it to pass appropriate orders.

It also impleaded the newly appointed contractor, M/S T Tachu & Co, as a party respondent in the present PIL.

Further, it directed the authority engineer, the authorities of the NHIDCL and the newly appointed contractor to maintain the road under Package-III so that the commuters do not face any difficulties or inconveniences.

“With regard to the permissible tonnage of heavy vehicles plying within the Package-I, II and III, appropriate orders will be passed in the presence of the state authorities on the next date”, it added.

Hearing the PIL on Sep. 28, the court was made to learn that the contractor M/s Oasis Projects Ltd. had issued a termination notice to the authority on July 18, 2022, of the project as per Clause 21.7 of the contract agreement without discussing with the authority and abandoned the project site with all their resources including staff, plants, machinery and equipments. They had completely closed their office and testing laboratory too, it said.

In February, when the PIL was heard, Yashpal Sharma, Director M/s Oasis Techno Construction Limited, submitted that the progress of Package-III was “hampered due to serious security threat and financial problems as well as due to landslides beyond the RoW and therefore no progress could be made and, therefore, they have decided to abandon the work”.

It also submitted that the steel bridge at 155.20 km would be completed by May 2022.

‘However, to date, the commitment made by the firm is yet to see the light of day’, the court stated.

The progress report of Package III, which is closer to the state capital, indicated that the physical progress is 28.058% and financial progress is 26.45% as on Sep. 27, 2022, to which the court observed, “no progress has been made at all”.

‘Complete package I, II by Nov. 30’

Hearing the same PIL, the Court also directed respondent (M/S Ramky-ECI (JV) to “complete the Package I and II on or before November 30, 2022”.

Taking into consideration the difficulties faced by respondent, the court also ordered Deputy Commission, Chumoukedima as well as the concerned police authorities to take up immediate steps to prevent any hindrance to the respondent for completion of Packages I and II and to ensure that the work is completed on or before Nov. 30.

In the meantime, the NHIDCL authorities were also directed not to make any further payment to the respondent without the leave of the Court.

With regard to Package-I, it is stated that the physical progress is 96.756% and financial progress is 94.14% as on Sep. 27, 2022. For Package-II, it is stated that the physical progress is 97.276% and financial progress is 95.94% as on Sep. 27, 2022.

The matter has been listed again for October 12, 2022.