SAINI CONSTRUCTIONS COMPANY Vs. DELHI JAL BOARD

JUDGEMENT

(1.) M/s Saini Construction Company (hereinafter referred to as the 'plaintiff') has filed the present suit seeking recovery of an amount of Rs.66,72,626/- along with pendente lite and future interest calculated at the rate of 15% per annum beside costs. Out of the sum of Rs.66,72,626/-, the principle figure is of Rs.51,32,789/- with interest calculated at the rate of 15% per annum which accumulates to Rs.15,39,837/-. The contention of the plaintiff is that the penalty amount of Rs.17,58,033.90, earnest money of Rs.7,73,000/- and the performance guarantee of Rs.9,76,700/- was illegally deducted from his final bill which amount is liable to be reimbursed to him. He has also claimed damages in the sum of Rs.10 lacs for the illegal recission of the contract and the consequential loss of profits which was suffered by the plaintiff and compensation due to the breach of the contract.

(2.) The plaintiff is a registered Government contractor executing various works with the Government and other local bodies including Delhi Jal Board (hereinafter referred to as the 'defendant').

(3.) Parties had entered into a contract on 14.04.2005 for execution of work to be carried out by the plaintiff i.e. for providing and laying 800 mm dia rising main/feeder main from Vikas Marg to Vishwakaram Park (Geeta Colony) UGR & BPS in TYA, Delhi under an agreement No.1/2006-2007. The salient features of the contract included a tendered amount of Rs.1,95,33,710/-; the estimated cost of the project was Rs.1,70,09,500/-; the date of contract was 24.03.2006; stipulated date of start was 22.05.2006 and the stipulated date of completion was six months thereafter i.e. on 22.11.2006.