RAMKY ENVIRO ENGINEERS LTD Vs. MUNICIPAL COMMISSIONER

JUDGEMENT

(1.) THE petitioner has sought to question the show cause notice dated 22.9.2012 issued by the first respondent directing the petitioner to show cause as to why the agreement dated 21.12.2011 on the work of collection, segregation, transportation and disposal of Municipal Solid Wastes (MSW) from Zone IX, X and XIII of Corporation of Chennai should not be terminated on 21.11.2012 on completion of sixty days from the date of issuance of show cause notice and forfeit the performance security furnished by the petitioner on termination.

(2.) THE first respondent, Corporation of Chennai invited ternders in October 2011 for selection of private operators for collection, segregation, transportation and disposal of Municipal Solid Wastes (MSW) in the zones IX, X and XIII for seven years. The scope of the work was stipulated in the Request For Proposal (RFP) as the generation of Municipal Solid Waste (MSW) in the above three zones around 1500 MT per day will be collected , segregated and disposed of by the successful bidder. The Corporation of Chennai will pay the tipping fee per ton basis for the MSW collected and disposed of by the tenderer as quoted and agreed for the first year and there will be an escalation of tipping fee by 5% for every subsequent years.

(3.) VARIOUS officials viz., Superintending Engineer, Deputy Commissioner (Health), Joint Commissioner (Health) and Commissioner have addressed letters dated 2.1.2012, 9.2.2012 and 15.3.2012 to the petitioner complaining the deficiencies, absentism and short fall and seeking to rectify those deficiencies. The first respondent issued notices on 16.6.2012, 27.6.2012, 18.7.012 and 18.8.2012 to rectify the defects mentioned in the show cause notice. The Mayor of Corporation of Chennai conducted meetings with the petitioner on various dates. The first respondent also issued show cause notice on 6.6.2012 directing the petitioner to show cause within 15 days as to why penal action should not be taken against the petitioner to terminate the concession agreement . It is stated in the said show cause notice that if the petitioner fails to show cause, the Chennai Corporation would be left with no other option except to invoke the penal provisions of the Concession Agreement and terminate the Contract.