Business Standard

ABG may move court against Kolkata Port Trust

Image

Shine Jacob Kolkata

ABG Haldia Bulk Terminals (AHBT), which operates at Kolkata Port Trust’s Haldia Dock Complex, has threatened it might consider legal action against the Kolkata port if it took any step to drive AHBT out of Haldia.

This follows on Friday’s decision by the port’s board of trustees to give a deadline to the company to restart operations by October 19. “If they fail to resume operations by the given date, it will be considered they aren’t interested in continuing operations at Haldia Dock, according to the agreement with us, and we will take necessary action,” said a port spokesperson. The company had stopped operations at the second and eighth berths of the dock complex, following unrest over the retrenchment of 275 employees at AHBT.

 

Gurpreet Malhi, chief executive of AHBT said, “We are yet to receive any information regarding a deadline from the port. It was becoming difficult for us to continue operations at Haldia. We have clarified unless they don’t give us enough cargo, we will pull out. If there is any effort to drive us out of the port, we would be left with no option but to approach the court.” In case the company is asked to leave the port, it might also seek compensation.

The Kolkata Port Trust’s decision to ask the firm to restart operations is based on the suggestions of a three-member committee constituted by the board.

Sources said at on Friday’s board meeting, it was decided a tender to mechanise all the berths at Haldia Dock would be floated immediately. This indicates the port is not keen on AHBT continuing its operations at the dock. The board also approved an emergency tender for evacuation of the cargo stored at the second and eighth berths. It would also seek the state government’s intervention on the matter.

AHBT, a joint venture company between ABG Infralogistics and French firm Louis Dreyfus Armateurs (LDA), had a total workforce of 1000, of which 650 were on its payrolls, while 350 were under a sub-contractor. The company had, however, stopped operations on September 24, citing political unrest. It had also laid off 275 workers.

“We are not going to reinstate the sacked workers. We want to continue operations here, but our employees need adequate security,” Malhi had told Business Standard.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Oct 13 2012 | 12:21 AM IST

Explore News