E-Paper
Chandigarh: HC imposes ₹75k fine on UT for withholding bank guarantees of liquor vend contractors
The court, while ordering release of security amount, termed UT’s stand unjustified and said that the transfer of the vends in question by the respondent administration was not subject to the decision in those petitions
The Punjab and Haryana high court (HC) has imposed a cost of ₹75,000 and directed Chandigarh administration to release bank guarantees of approximately ₹4 crore to three liquor vends’ contractors.
“The court acted on the three petitions involving nine vends, wherein the original allottee transferred the vends licences to someone else and it was approved by the administration. The licensee paid up all requisite fee but the administration refused to release bank guarantee amount to original allottees arguing that some petitions challenging the allotment of liquor vends on the grounds of cartelisation, are still pending before the court and in case those petitions are allowed, vends would have to be re-auctioned which could result in loss to the administration,” said Ranjit Singh Kalra, who appeared for these contractors.
The court, while ordering release of security amount, termed UT’s stand unjustified and said that the transfer of the vends in question by the respondent administration was not subject to the decision in those petitions and even if those petitions are allowed and administration has to re-allot the vends the burden of such financial prejudice could and would only fall on the respective transferees as they have been allowed by the administration to step into the petitioners’ shoes.
It further said that the administration has also financially secured itself for these exigencies by accepting bank guarantees, solvency certificates and even surety bonds covering the entire licence fee from the respective transferees. Hence, bank guarantees of original allottees can’t be held back.
