Metropolitan Engineers’ Co-op Society’s Non-Payment of Tender Work Amount

Background

From late 2011 to early 2012, company members approached the complainant, presenting themselves as government contractors with a track record of successfully completing various national and international projects. They proposed a business collaboration involving a tender contract from the National Highway Authority of India (NHAI) for the dismantling/shifting and installation of electrical utilities in the Kalyani and Krishnagar divisions for the Barasat-Krishnagar section of NH-34 in West Bengal.

Timeline of Events

1. Agreement and Execution:
   • The complainant agreed to be the subcontractor for the project.
   • Two separate letters of intent were signed for the Kalyani and Krishnagar divisions.
   • The complainant executed all the work as per the agreement.
2. Non-Payment of Bills:
   • The complainant found that the amount receivable against the R/A bills was not being cleared.
   • Upon approaching NHAI, it was discovered that the accused were deliberately withholding the bills, with an outstanding balance of Rs. 12,87,00,000 payable to the complainant.
   • The NHAI had suspended and subsequently terminated the tender contract awarded to the accused due to various wrongful activities.
3. Fraud and Legal Action:
   • The complainant sent multiple notices to the accused, which were ignored.
   • Documents from Bowbazar Police Station revealed that the Barasat-Krishnagar Expressway Limited, a subsidiary of the accused company, undertook a four-laning project awarded by NHAI on a design, build, finance, operate, maintain, and transfer basis for a 17-year concession period starting from March 24, 2011.
   • NHAI failed to hand over full rights even after 36 months, leading the company to terminate the contract on December 31, 2015.
   • Both the company and NHAI entered into a Supplementary Agreement for dispute adjudication through arbitration under SAROD rules, but the adjudication did not occur.
4. Legal Proceedings:
   • The company moved to the Delhi High Court, and the EPC contractor made claims against the company.
   • Upon receipt of the arbitration award, the company planned to negotiate with the EPC contractor to settle the claims.

Solution

The client approached advocate Rajesh Kshetry with this matter. Leveraging our legal expertise, we were able to assist our client in obtaining the rightful justice they deserved.

Conclusion

This case underscores the importance of legal intervention in resolving complex contractual disputes, particularly in large-scale infrastructure projects. Rajesh kshetry played a crucial role in advocating for the client’s rights, ensuring they received the compensation they were owed for the work completed.