Ruling: PHC suspends Wapda’s decision to cancel construction contract

Counsel for Kundi Construction Company says all legal requirements were satisfied

PESHAWAR: The Peshawar High Court suspended Water and Power Development Authority (Wapda)’s decision to cancel the contract of Kundi Construction Company, saying the contract was awarded after all requirements were fulfilled.

A two-member bench, comprising Justice Yahya Afridi and Justice Roohul Amin, heard a petition filed by Kundi Construction Company on Tuesday. The petition was filed by the company through its counsels Sardar Ali Raza and Shumail Ahmad Butt. The bench was informed that Wapda had awarded a construction contract worth Rs332 million for Gomal Zam Dam to the company in
May 2015.

Raza said the contract was awarded after all legal requirements were satisfied. He added Wapda cancelled the contract in June 2015 and said statistics provided by the company were fluctuating.

According to Butt, the petitioner was the lowest bidder. The contract was awarded after all statistics provided to Wapda were declared correct.

He added as per section 33 and 38 of Public Procurement Rules 2004, once a contract was declared right and the company commenced work, it could not be cancelled.

This is primarily because as legal requirements have been satisfied before the contract was awarded and the company has completed all those requirements.

Published in The Express Tribune, May 11^th, 2016.