HINDUSTAN STEELWORKS CONSTRUCTION LIMITED Vs. BOARD OF TRUSTEES FOR THE PORT OF KOLKATA
LAWS(CAL)-2021-2-81
HIGH COURT OF CALCUTTA
Decided on February 04,2021

HINDUSTAN STEELWORKS CONSTRUCTION LIMITED Appellant
VERSUS
BOARD OF TRUSTEES FOR THE PORT OF KOLKATA Respondents

JUDGEMENT

SABYASACHI BHATTACHARYYA,J - (1.) The Kolkata Port Trust (respondent no.1) issued a 'Letter of Intent' (LoI) to the petitioner-Company (a Government Company), upon the petitioner having emerged a successful bidder in a tender floated by the Kolkata Port Trust, for supply, installation, operation and maintenance of two road weighbridges at the Haldia dock Complex, KoPT on June 16, 2017. The LoI comprised of a contract given to the petitioner for above purpose. The contract was granted for 10 years from the date of awarding of the LoI and also contemplated buying back two existing weighbridges.
(2.) Respondent no.1, vide show-cause notice dated January 9, 2017, issued to the petitioner, stated that, instead of the petitioner, the weighbridges were manned by personnel belonging M/s. Fairfax Industries Limited (proforma respondent no.4), it was further indicated that as per the Memorandum of Understanding entered into between petitioner no.1 and proforma respondent, all investments in weighbridges, equipment and related items were to be done by the proforma respondent. The latter was to install its own equipment to the satisfaction of the Port Trust authority. The proforma respondent was to be awarded the entire work for full tenure and would incur all revenue and recurring expenditure for installation, operation and maintenance of the weighbridges with no financial assistance of the petitioner. As per the MoU, all investments in the weighbridges, equipment and related items were also to be done by the proforma respondent, which would install its own equipment for weighment, incurring 100 per cent expenditure.
(3.) The petitioner, in its reply dated February 8, 2017, to the show-cause notice, explained that all the weighbridges were registered and operational under the name of the petitioner, who also assumed full responsibility of the weighment, operation, etc.;


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