Hyderabad HC dismisses Konaseema Gas’ plea for bank guarantee refund
By Express News Service | Published: 18th May 2017 05:40 AM |
HYDERABAD: Pointing out the repeated failure of the Konaseema Gas Power Company Limited to fulfil its contractual obligations, the High Court has refused to accept the plea of the company to direct the central government to refund the bank guarantees furnished by the company and a direction to restrain the authorities from encashing the bank guarantees.
Justice C Praveen Kumar was dealing with a petition filed by the company seeking permission to enter into an agreement and submit bank guarantee for third-phase bid to draw the allocated quantity of RLNG (re-gasified liquid natural gas) as per the letter of award issued by the Union ministry of power last year.
The company alleged that the Centre too had failed to fulfil its promise of supplying gas to them and, as a result, it incurred losses.
After perusing the material on record, the judge found that there were more failures on the part of the company.
Though the Centre had introduced the RLNG supply scheme with an intention to help the stranded gas projects like Konaseema, the latter could not fulfil the conditions laid down in the agreements entered into by the Centre and the company. On the other hand, several loans availed by the company were declared as non-performing assets (NPAs) by the banks.
Despite having successful bidding and getting RLNG in the second phase of the scheme, the company could not fulfil its contractual obligations despite several extensions of time for doing the same, the judge pointed out.
While refusing to direct the Centre to refund the bank guarantees furnished by Konaseema Gas Power, the judge said that the company shall make a request to the authorities concerned to consider it for future schemes of the Centre and that the latter would consider the same in tune with the law and facts of the case, and disposed of the petition.