Court tells MC to pay company Rs 6.78 crore

Tribune News Service

Sandeep Rana

Chandigarh, June 3

A local court has directed the Municipal Corporation to pay about Rs 6.78 crore along with interest at the rate of 12% per annum to Gautam Builders, Engineers and Contractors, the firm that built the city’s first Rs 48-crore multi-level parking lot in Sector 17.

Citing “anomalies” in the construction of the parking lot, the MC had withheld the security deposit of Rs 2.06 crore, final payment of Rs 1.70 crore and payment against other construction material-related costs, totalling Rs 5.39 crore.

Besides Rs 1.29 crore pre-suit interest, the MC will have to pay interest at the rate of 12% per annum from the date of filing of the suit till the date of decree and further from the date of decree till the date of payment. While withholding the amount, the civic body had stated that it would use the money to carry out repairs and fix the structural weaknesses of the project. The move had followed a probe by the UT Vigilance Department. The department had found “construction anomalies and structural weaknesses” in the parking lot.

However, the court of Additional District Judge (Commercial Courts) Anshu Shukla said the defendants (corporation) had provided the specifications, designs and drawings for the construction of the building, and it was constructed by the plaintiff (firm) on the basis of the same.

“The plaintiff has completed the work as per the DNIT (detailed notice inviting tender) and the default lies with the defendants’ designs and specifications of the multi-level parking building. Therefore, it is fundamentally unjust to withhold the amounts due to the plaintiff-contractor,” observed the court in its order.

The order further stated, “...the payments of plaintiff were withheld as there were leaks in the rooftop of the multi-level parking, which are attributable to the plaintiff. On the other hand, the plaintiff has submitted that the leaks in the rooftop were not attributable to him as he had executed the work in accordance with the designs, drawings and specifications given by the defendants. The specifications, drawings and designs for construction of the rooftop and garden on the rooftop and waterproofing specifications provided by the defendants were defective. The maintenance of the multi-level parking was poor and defective.”

The court observed, “....after completion of the multi-level parking, the building was inaugurated and the same was put to use for the public. The defect liability period of 12 months under clause 17 of the agreement also expired on December 31, 2016. However, the plaintiff has still not received the amounts legally and rightfully accrued to him.”

Meanwhile, a senior MC official said they would go in appeal against the order.

What court observed

The court of Additional District Judge (Commercial Courts) Anshu Shukla said the defendants (corporation) had provided the specifications, designs and drawings for the construction of the building, and it was constructed by the plaintiff (firm) on the basis of the same.

Civic body had cited ‘anomalies’

Citing “anomalies” in the construction of the parking lot, the MC had withheld the security deposit of Rs 2.06 crore, final payment of Rs 1.70 crore and payment against other construction material-related costs, totalling Rs 5.39 crore.