Irrational enforcement of NCLT Order by the legal department of Railway Board!

Letter of DLA/RB of is overlapping various existing laws prevailing over IR and this aspect is not taken care while issuing such guidelines

letter of DLA/RB shall be withdrawn immediately & ensure appropriate implementation of NCLT order to avoid technical, financial losses and ensures safety of passengers

The Legal Department (Dy Legal Advisor) of Railway Board while issuing of letter no. 2019/LC/Misc/6, dated 09.09.2019 to enforce subject NCLT order throughout Indian Railway neither consulted Member Rolling Stock, Member Traction, RDSO, Finance and Safety department nor opt for taking consent from Production Units/Zonal Railways, but direct instructed to re-instate the status of M/s. Steasalit Ltd. as earlier, with permission to procure material from Occupier company, without considering any safety, technical and financial implications.

Legal Department has not even considered that Occupier Company has no experience for the products of M/s. Stesalit Ltd. and majority of skilled ex-employee had shifted to other competitors, as it is closed down from last 04 years.

During this tenure, safety and technical parameters might be updated, which may not be available either with M/s. Stesalit Ltd or Occupier Company.

By doing so, Legal Department had put the Passenger’s Life at high risk, as it empowers Occupier Company to overlook existing Rules & Regulation and manufacture safety and crucial products without conformity to design and requirement of Indian Railway that too without any assessment.

It has also eliminated the recoveries of approximate ₹250 Crores, which were due on M/s. Stesalit Ltd. and saved Occupier Company from other liabilities as well.

So, letter of Legal Department shall be withdrawn immediately and appropriate implementation of NCLT, Kolkata Bench order dated 20th July, 2018 (C.P. (IB) No. 512/KB/2017, Busilink Associate Vs Stesalit Ltd) shall be done after discussion with concerned authorities to avoid technical, financial losses of Indian Railways and ensures safety of crores of passenger’s life.

Letter of Legal Department of Railway Board is overlapping various existing laws prevailing over Indian Railways and this aspect is not taken care while issuing such guidelines, so matter may be investigated in details.