SC stays IBN decision on performance bond for monorail firm
June 26, 2018 05:15 AM NPT
KATHMANDU June 26: The Supreme Court on Monday gave continuity to its earlier stay order against the decision of the Investment Board Nepal (IBN) to seek Rs 100 million as performance guarantee from the Kathmandu Monorail Company Ltd (KMCL) before signing an MoU to prepare the detailed project report (DPR) for Kathmandu Monorail Project.
A division bench of justices Om Prakash Mishra and Purushottam Bhandari issued the order following a hearing Monday continuing the interlocutory stay order issued on May 28 by a single bench of Justice Bam Kumar Shrestha, which was backed by a division bench of justices Om Prakash Mishra and Kedar Prasad Chalise on June 4.
“As the IBN decision of May 8, 2018 was not endorsed by the board of directors, the court has decided to continue the June 4 stay order for until the case concludes,” the order states.
Kathmandu Monorail Company Limited Director Tara Devi Dhakal had filed a petition at the apex court challenging a government demand for Rs 100 million rupees performance bond. The dispute over the performance bond has delayed the project work.
The IBN has proposed a draft MOU with a provision that Kathmandu Monorail Company Limited should deposit Rs 100 million as ‘performance guarantee’ before starting DPR work of the project while the KMCL argues that this will cause huge financial burden on the company.