Chinese Company Reached Delhi Court Against Railway Canceled Contract

The decision of the Indian Railways to cancel the contract awarded to a Chinese company for the signal and telecommunications work of the Eastern Dedicated Freight Corridor has been challenged by the Chinese company in the Delhi High Court. Indian Railways has cited the slow pace of work to conclude this agreement.

The High Court has taken cognizance on Thursday on the petition filed by the Chinese company. In this petition, the Chinese company has accused the Indian Railways of wrongfully terminating the contract.

The company said that under the contract, it was to carry out the 417 km long corridor between Kanpur and Mughalsarai for signaling and telecommunications. For this, a contract worth Rs 471 crore was given, which has now been abruptly terminated.

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The Chinese company has approached the High Court that the Dedicated Freight Corridor Corporation of India Limited; DFCCIL should be directed to stop encashing bank guarantee. The project is funded by the World Bank.

At the same time, Indian Railways has replied in the court that the agreement has been terminated due to the slow pace of work. It has been said that the railway is operating under the rules. The completion of the scheduled project has been delayed due to the slow pace of work.

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In 2016, the Indian Railways awarded the tender to the Beijing National Railway Research and Design Institute of Signal and Communication Group. Now before ending the tender of this company, Indian Railways had given a notice of 14 days to the Chinese company, whose period was completed on Friday.

According to the railways, the work to pull the Chinese company out of the project started in January 2019 as it could not work within the stipulated time. The company had worked only 20 percent by then.