AGREEMENT

Job contract for Appointment of ‘Valuer’ for Inventorisation/ Valuation/ Revaluation of Uncleared/ Unclaimed/ Undelivered/ Abandoned Cargo in the custody of Air India Air Transport Services Ltd. at Cargo Complex, Sahar. Mumbai.

THIS AGREEMENT MADE THIS ...... day of two thousand sixteen between Air India Air Transport Services Limited, awholly owned subsidiary of Air India Limited and having its Registered office at Airlines House, 113, Gurudwara, Rakabganj Road, New Delhi 110001 represented by Dy. General Manager, Mumbai, hereinafter referred to as AIATSL and all or any of them duly authorized by the CEO-AIATSL in this behalf and its successors and assigns) of the one part, and M/s...... having its registered office at ...... and represented by Shri ... the Authorised Signatory of other part (together with documentary proof of the authorized signatory) hereinafter called “the Licensee” (which term unless excluded by or is repugnant to the context be deemed to include the heirs and representatives of the Licensee).

WHEREAS AIATSL is desirous of availing services of the Licensee for providing services enumerated in Annexure ‘A In respect of Unclaimed, Uncleared/ Undelivered/Abandoned Cargo which services are hereinafter referred to as the ‘Services’ and whereas the said Licensee has agreed to render the said Services to AIATSL on the terms and conditions mentioned hereinafter.

2. Scope of Functions :-

2.1Licensee shall be responsible for correct and proper Inventorisation/ Valuation/ Revaluation of all the packages presented/made available by AIATSL at the designated areas in terms of the Scope of Functions marked at Annexure ‘A’

2.2As and when required the licensee shall also make available the services of the panel of valuers including the expert(s) on the product line for valuation of the packages. The panel of valuers, in case required, may also include the representative of Customs, which will be arranged by AIATSL. In case of any doubt the decision of the panel of three valuers shall be final.

2.3After Inventorisation/Valuation/Revaluation licensee shall promptly make available the packages together with the documentary details of inventorisation, valuation as per prescribed procedure to the designated officials of AIATSL for proper stacking in the designated areas. The Licensee will carry out inventorisation, valuation/revaluation and other related jobs as and when required by AIATSL within the specific time schedule assigned by the designated officer of AIATSL and licensee on a given day will carry out inventorisation/valuation of minimum of 100 consignment or 250 packages which ever is higher subject to the condition of relevant number of consignments/packages being made available to the licensee. Incase of AIATSL making less number of packages available to the licensee, the licensee will complete inventorisation/ valuation of such number of packages on the same day.

2.4The Licensee shall specifically notify AIATSL in writing the items like narcotics, antiques, radioactive materials, hazardous cargo drugs and medicine, pornographics, cinematographic films, religious materials, fire-arms etc. Incase found during the courseof inventorisation /valuation which cannot be disposed of by AIATSL through the auction.

3.Duration of Agreement :-

This Agreement shall be deemed to have commenced from .... and shall continue to be enforced upto .... . The license may be extended by the AIATSL on its own discretion upto further period of one year on the same terms and condition, subject to satisfactory performance of the Licensee.

4Notice for Termination

4.1 AIATSL shall have the right to terminate the License after giving 90 days notice. The Licensee can also terminate this License by serving a similar notice, in writing. Such notices will be served by ‘Registered Post’ or by hand, at the respective address. Notwithstanding the above, the Licensee shall not discontinue the services within and after the notice period and shall continue to provide services as per the Licensee till alternative arrangements are made.

4.2Even when the Licensee has served notice for rescinding the License/contract, his/her personnel will not be withdrawn by him/her till such time alternate arrangements are made by AIATSL.

4.3The AIATSL shall have the right to terminate the License at any stage without giving any notice in case the Competent Authority of AIATSL is not satisfied that the License has been obtained by indulging in fraud, cheating, submission of false, forged, fabricated, tampered documents etc and or Licensee found indulging against the terms of the agreement.

5. Payment terms :- As a Valuer

5.1On consideration of the licensee actually performing the said services

satisfactorily, AIATSL shall pay to the licensee an all inclusive lump sum rate of

Rs. ...Per package irrespective of size/volume/ weight/value of the package.

5.2 Service Tax payable as per rules shall be reimbursed in addition to the charges at Clause 5.1 and TDS as applicable shall be deducted from the bill received from the licensee before release of the payment against such bill.

5.3 The aforesaid rate shall remain firm during the currency of the license/ agreement and no claim for compensation or escalation shall beentertained from the licensee during the currency of the agreement. Licensee shall absorb all enhancements payments on account of increase in wages remuneration of his/her workers and the taxes, if any, payableduring the currency of the agreement.

5.4 The licensee on completion of Valuation Process will submit bill along with therelevant documents dully certified by the designated officials of the AIATSL and the amount payable after deductions as finalized will be released to the licensee.

5.5 Statutory and other deductions :-

Deductions towards Income Tax and other Statutory dues/Taxes and the penal levies imposed by the AIATSL as provided for, shall be made from the payable amount of the monthly bill received from the licensee. In the event of any amount having been paid in excess the same shall be recovered before the payment is released during the succeeding months. The payment of amount as computed by the AIATSL based on the relevant documents shall be deemed as final and binding on both the parties.

6.Entry Passes :-

Before commencement of work the Licensee shall apply for, in

prescribed format application, and arrange valid entry passes (Photo Identity Cards) for all the required personnel under the terms of the license in due time. The such passes shall be issued to all the concerned individuals at the

commencement of each shift and retrieved at the end of the duty of each individual. The licensee shall also ensure that none of the manpower is found or deployed without holding a valid PIC and also beyond their stipulated duty timings. Any such individual found inside the Cargo Complex beyond their duty timings or not in possession of a valid PIC shall be treated as unauthorized entrant and action as provided for shall be taken against such workmen/contractor in terms of Regulations inforce.

The Licensee shall also additionally ensure that none of their worker/staff enter the areas of Cargo Complex for which they are not specifically designated, as per their assigned duty and any violation thereof shall render the concerned individual to forfeiture his/her entry permit/PIC besides imposition of penalty, as may be decided by the designated AIATSL’s Officials.

7. Indemnity against any claim on account of injury :-

The licensee shall indemnify AIATSL against any claim on account of injury caused to and by his personnel/representative during the course of their performance of duties owing to the negligent handling/mishandling of equipment/cargo, and shall also comply with the provisions of the Workmen’s Compensation Act, 1923 and such other applicable statues/regulations.

  1. Statutory Laws and Rules/Regulations andProcedure of AIATSL:

8.1The Licensee shall abide by all labour and other laws/obligations including the provisions of the Contract Labour (Regulation and Abolition) Act, 1970 and other applicable statutes.

8.2Before commencement of work under the provisions of this License, the Licensee shall obtain and produce to the AIATSL the license, as provided for under the applicable laws.

8.3The Licensee and his/her representative/staff shall abide by the rules and regulations of the AIATSL and all other statues while performing the contractual functions.

8.4Licensee and all his workforce shall comply with the requirements and directions as given by the Officers of the AIATSL in respect of any matter relating to hygiene, sanitation, prevention of infectious diseases, nuisance from insects/flies and use of toilets/washrooms etc.

  1. Subletting of Contract :-

The licensee shall not sublet any portion of this License to other agency/ agencies and if subletting is established, the License shall be liable for termination after issue of a formal notice to the Licensee as provided for in this agreement. In addition, a penalty @ 10% of the bill amount for the relevant period shall also be levied.

10. Performance Security :-

The Licensee shall submit a DD drawn in favour of Air India Air Transport Services Limited payable atMumbai from a Nationalised Bank for Rs. .... (Rupees ) equivalent to 10% of the estimated annual value of the license towards a performance security for the due and faithful discharge of the Licensee.

The Security Deposit will be refunded/discharged and returned to the Licensee after six months of the satisfactory completion of the License. No interest shall be payable by the AIATSL on this amount of Security Deposit. The AIATSL reserves the right to forfeit wholly or partly the security deposit, for failure of any part of the terms of conditions of this Agreement. The amount of Security Deposit shall be recouped/refunded by the Licensee, in case of any adjustments being made by the AIATSL, under clauses of this Agreement during the currency of this contract, AIATSL shall have the right to recover such shortfall in the amount, from any amount due to the contractor, in case of his/her failure to do so.

11.Administrative and Operational Space :-

The AIATSL shall provide all specified facilities to the Licensee to discharge their obligations to the AIATSL in terms of this License. Subject to availability of the space, office will be provided at the rates prescribed by the AIATSL from time to time.

  1. Character and Antecedents of Licensee’s Workforce/ employees :-

12.1 The Licensee shall deploy well behaved workforce of unblemished character and with duly verified antecedents.

12.2 The Licensee shall furnish to AIATSL in writing the name, parentage, residential address, educational and technical qualifications, specimen signatures(s), finger prints and two recent passport size photographs of all personnel whom he proposes to employ for the purpose of this contract, before deploying and AIATSL shall be at liberty to forbid the employment of any person whom it may consider undesirable after verification. The personnel deployed by the contractor shall obey such directions as may be issued by AIATSL. The Licensee shall also have the character and antecedents of all persons deployed by him/her verified by the police to the satisfaction of BCAS and the proof of antecedents verification by the prescribed authority shall be submitted to AIATSL before deploying the individual for the License.

12.3 AIATSL however, reserves the right to reject any staff for deployment in this contract.

12.4 The Licensee shall take action for the removal of personnel deployed by him/her for the performance of functions under this Agreement, as and when advised by AIATSL official(s).

  1. Standard of Work and Penalties: - as a Valuer

13.1AIATSL shall reserve right to fix responsibility for commission and omission and impose the levies for such deficiencies in services after serving notice and giving a fair opportunity to the Licensee in respect of following:-

a)Delay in inventorisation/valuation/revaluation specified time limit.

b)Wrong/improper inventorisation/valuation/revaluation.

c)Negligence in performance of contractual functions.

d)The wrong/improper documentation -

An amount of Rs.100/- shall be levied for each lapse/incident of deficiency in service as mentioned above. In addition to the penal levy the Licensee his/her workforce shall also be liable for action as per the provisions of Customs Act., 1962 and/or any other applicable laws/regulations.

13.2 Standard of Work: - As Valuer

In case it is observed by AIATSL that the work performed by the Licensee is not as per the required/specified standards as contained in the Scope of Functions despite the penal levies being imposed on the Licensee for deficiency(ies) in the services, AIATSL shall levy a penalty not exceeding Rs. 5,000/- in a month for which Speaking Order passed by the General Manager -Ground Handling(Co-Ord), Western Region shall be final and binding on the Licensee.

In event of repeated delay or lack of promptitude in discharge of any contractual functions viz. specified standards in addition to the penal levy(ies), the AIATSL can exercise the option to invoke the Clause 4 of the License and seek cancellation after serving the stipulated notice as provided.

13.3 Misconduct on the part of Licensee’s Workmen/Staff: -

If licensee or his/her worker/staff are apprehended tampering with, sealing/pilfering cargo and or abetting in such acts or causing damage, tampering with or stealing/pilfering of cargo or assets of AIATSL.

He/She shall summarily be withdrawn from duty and shall also be removed from the premises of the Cargo Complex and further, shall not be re-deployed without the express and written consent of AIATSL/Designated Officer of AIATSL.

Whenever, the worker/staff of the Licensee is apprehended as above and/or found in an un-authorised possession of goods/assets/property the value of which does not exceed Rs.5,000/- levy of penalty imposed will be Rs.1000/- where value exceeds Rs.5,000/- levy imposed will be Rs.5,000/- such fine shall be imposed based on the findings of a joint investigation conducted by designated official(s) of AIATSL duly associating the Licensee’s representative or documentary evidence.

The levies so imposed, per incident shall be in addition to and without prejudice to the recourse available to AIATSL and the ‘Laws of Land’ to realize/recover any kind of loss or damages which may be incurred or accrued.

13.4 In the case of such breach of the terms of this license as minor offenses and complaints coming to its notice for which in the opinion of the AIATSL this agreement need not be terminated, the AIATSL may at its discretion recover compensation form the licensee upto the limit of the security deposit of the licensee. The decision of the authority in this respect will be final and binding on the licensee.

13.5Cumulative Charges :-

The cumulative charges towards levies/penalties as provided under the existing clauses for which the Licensee is liable, shall be limited to5% of annual turnover of the License value during the year or Rs.20,000/- whichever is higher.

13.6Delegation :-

The penalties as provided in the agreement will be decided at the level of Manager-Cargowhich may be reviewed on appeal if required by the General Manager-Ground Handling (Co-Ord), Western Region and upto further appeal if situation warrants by the CEO-AIATSL shall be final and binding on the Licensee.

13.7Arbitration :-

In the event of any dispute arising out of this Agreement the matter shall be referred to a sole Arbitrator to be appointed by the General Manager-Ground Handling (Co-Ord), Western Region. The decision of the Arbitrator so appointed shall be final and binding on both the parties. The applicable law to such arbitration proceedings shall be the laws of land as may be in force from time to time. The Arbitration shall be held in Mumbai and shall be subject to the jurisdiction of Courts in Mumbai.

14. FORCE MAJEURE:

It will be the endeavor of the Licensee to fulfill and discharge his obligations its terms of the Agreement faithfully and diligently. In case, the Licensee is unable to perform his obligations for reasons beyond his control such as fire, natural calamities riots/civil commotion/mob agitation/arson not involving his personnel, act of God, war disruption of operations at Cargo Terminal as determined by AIATSL etc., he shall not be liable for any damages or losses suffered by AIATSL.

MISCELLANEOUS :-

15.The Licensee will be well conversant with the provisions Customs Act, 1962 and other relevant Laws/Regulations.

16.The Licensee shall engage/deploy duly qualified personnel for jobs required to be performed under this agreement.

17.The AIATSL reserves the right to appoint as many valuers as may deemed fit.

18.Licensee shall not damage the premises or any part premises and in the event of any damage being caused to the same intentionally or otherwise, by the licensee or his employees or invites or customers, AIATSL shall be entitled to repair the damage or make the requisite replacement and call upon the licensee to reimburse cost thereof which the licensee undertakes to pay forthwith on demand.

The licensee shall not store or bring or keep in the premises heavy articles so as to injure or damage the premises or keep goods of combustible or inflammable nature.

19.The licensee shall not use electrical heater, toaster and other allied Appliances in the premises for preparation of tea, coffee or heating of food etc. unless specifically provided under the agreement to perform contractual obligation.