The Lahore High Court on Thursday allowed a Chinese company to withdraw its petition against the cancellation of a contract by the government for supply of 75 locomotives.
The counsel for the company informed the court that he wanted to withdraw the petition on behalf of his client. A representative of the government told the court that negotiations were underway and the company was repairing locomotives it had already supplied. The company, Dongfang Electric International Corporation had filed a writ petition, saying it had entered into an agreement with the government to supply 75 locomotives in 2008 but the government had terminated the contracted on May 16, 2013. He said under the agreement, an advance payment of $15.77 million was made by government in June 2009. He said the government had now served a notice to the company to return the down payment.
Previously, the petitioner had sought a stay order against government’s demand for returning the bank guarantee but the court had declined the request, asking the company to prove its credentials.
Published in The Express Tribune, September 13th, 2013.