Delhi HC stays order barring CIPL-COBRA from participating in railway contracts for 5 years

ANI
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Representative image

New Delhi [India], November 6 (ANI): Observing that no cogent reasons were given for a ban, the Delhi High Court has stayed an interim order issued by Indian Railway against CIPL-COBRA, an international joint venture, banning it from participating in any railways' contract for five years.

"The court is of the view that a prima facie case has been made out for grant of interim relief. Accordingly, till the next date of hearing, there shall be a stay of the impugned ban order dated July 23, 2018," a single-judge bench of Justice Najmi Waziri said in its order dated November 2.

Advocate Nalin Kohli, the counsel for the petitioner, submitted that the respondent's order dated July 23, 2018, banning the petitioner from participating in any railways' contract for five years is unreasoned, arbitrary and in any case drastic in effect.

"The preceding arguments are persuasive. Except for narrating the sequence of events, quoting from the petitioner's reply to the show cause, the passing reference in one sentence in the impugned order July 23 that the petitioner has committed a serious breach of the terms of the contract, there are no cogent reasons given for a ban for half a decade," the bench noted in its order and listed the matter for further hearing on January 27, 2021.

Advocate Jagjit Singh, appearing on behalf of the Railways, vehemently opposed the submissions made on behalf of CIPL-COBRA on various grounds during the hearing. (ANI)