Madras High Court has formed a three-member committee to reconsider the technical aspect of the ambitious Integrated Traffic Management System for Chennai city and submit a report to the court on May 16.
The matter relates to a multi-crore integrated traffic management system for which the Chennai-based Purple Infotech was chosen after due tender process.
The company was found to be technically qualified in May 2012 and it furnished a bank guarantee of Rs 5.83 crore. The tender was awarded to the company and it also put in possession of the site, when "for some reason" authorities formed a second technical committee.
On 're-evaluation', the second committee concluded that the company was not suitable for executing the work and the contract was sought to be terminated.
The termination, however, has not been finalized, as it was awaiting the approval of the government's technical committee. Now facing the prospect of its bank guarantee being encashed on account of 'delay', the company moved the court saying it could not be blamed for the delay.
Justice R Sudhakar, disapproving of the authorities' decision to invoke the delay clause and encash Rs 5.83 crore bank furnished by the successful bidder in 2012, said substantial portion of the tender had been implemented -- "which is for the larger benefit of the Chennai city".
Pointing out that there was a default clause even for delayed execution of the work, he stayed the impugned decision to encash the bank guarantee.
The Judge then formed a three-member committee comprising the Home Secretary, Director General of Police and a qualified person from the IIT-Madras to study viability of the project and file a report in the court before May 16 and adjourned the matter to June 2, after staying the operation of the decision to terminate the project and encash the bank guarantee furnished by the successful bidder.
