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HC sets aside MoD order cancelling Bofors component contract
New Delhi, Jan 10: delhi high court has quashed a Ministry of Defence order cancelling a contract, allegedly at the behest of a `very strong` lobby of foreign arms suppliers, for supply of cheap and indigenously developed `variable speed gear` for the Bofors guns.
New Delhi, Jan 10: delhi high court has quashed a Ministry of Defence order cancelling a contract, allegedly at the behest of a 'very strong' lobby of foreign arms suppliers, for supply of cheap and indigenously developed 'variable speed gear' for the Bofors guns.
Justice Manmohan Sarin set aside the august 6, 2001 order and all other consequential orders cancelling the contracts of Saraswati Dynamics and banning all dealings with it, which were issued without issuance of show cause notice and giving an opportunity to the firm to explain its case.
The mod had cancelled the contract and blacklisted the company from participating in any future contracts on the allegation that one of the directors of the company had offered a bribe to an army officer. Subsequently subordinate offices/ agencies/ authorities under the mod had also cancelled various other contracts. ''This was certainly not a case, which could be called an iron and shut case, where only conclusion as to the guilt of the petitioner was possible,'' the judge said.
He, however, gave liberty to the ministry to issue fresh show cause notice(s) or take action in accordance with the terms and conditions of the contract on the same cause of action, for alleged violation. On September 5 last year, the court has issued notice on the plea by the private defence manufacturing unit, which had claimed that the Indian VSG made for the state-of-the-art anti-aircraft guns, procured almost two decades ago, could have saved the government exchequer about Rs 1350 crore.
Bureau Report
The mod had cancelled the contract and blacklisted the company from participating in any future contracts on the allegation that one of the directors of the company had offered a bribe to an army officer. Subsequently subordinate offices/ agencies/ authorities under the mod had also cancelled various other contracts. ''This was certainly not a case, which could be called an iron and shut case, where only conclusion as to the guilt of the petitioner was possible,'' the judge said.
He, however, gave liberty to the ministry to issue fresh show cause notice(s) or take action in accordance with the terms and conditions of the contract on the same cause of action, for alleged violation. On September 5 last year, the court has issued notice on the plea by the private defence manufacturing unit, which had claimed that the Indian VSG made for the state-of-the-art anti-aircraft guns, procured almost two decades ago, could have saved the government exchequer about Rs 1350 crore.
Bureau Report