- (b) during the course of the suspension, may retain any property taken possession of under paragraph (a) and may use that property in the operation of the railway as it thinks fit.
(6) The Government is liable to pay compensation—
- (a) for the use of, loss of or damage to any property taken possession of under subsection (5); and
- (b) except where a franchise is revoked under section 18, for loss or damage of any kind (including consequential loss) sustained by the Corporation and in any way arising from or attributable to the suspension of the franchise under subsection (1).
(7) The right conferred under subsection (5) to take possession of property and to use that property in the operation of the railway includes the right to keep or maintain the property in whatever condition, or to alter the property in whatever manner, is considered appropriate for that purpose and, without affecting any entitlement to compensation under subsection (6), nothing in this Ordinance or any other law imposes on the Government any obligation in relation to the condition in which property taken under subsection (5) is to be kept or returned.
16. Default under franchise
For the purposes of sections 17 and 18, the Corporation is in default under the franchise if—
- (a) either of the following occurs—
- (i) there has been a substantial failure by the Corporation to discharge an obligation under the operating agreement; or
- (ii) the Corporation has failed or there is a likelihood of its failing substantially to operate the railway in accordance with this Ordinance,
- and the failure (or likely failure) results in or is likely to result in—
- (A) a substantial breakdown of the service;
- (B) the safety of persons travelling on the railway or being on the railway premises being endangered in a manner likely to result in serious injury to those persons; or
- (C) serious injury to or the death of persons travelling on the railway or being on the railway premises; or
- (b) a voluntary winding up of the Corporation is commenced or a winding up order in respect of the Corporation is made,
and the expression “default” shall be construed accordingly.
