GUPTA CONSTRUCTION CO Vs. C P W D

JUDGEMENT

(1.) The petitioner has impugned the levy of a penalty of Rs.43,765/- under clause 2 of the agreement between the petitioner and the respondent on account of delay in completion of the work pursuant to an agreement No.37/EE/DAD 2004-05 executed between the parties.

(2.) The contention of the petitioner is that respondent No.2 acted illegally and issued a show cause notice dated 21st April, 2006 to the petitioner under clause 2 of the contract agreement alleging that the work was not completed with in time allowed under the agreement and then levying the penalty in terms of clause 2.

(3.) According to the respondent, the work was completed not on 26th July, 2005 as contended by the petitioner but it was completed on 16th January, 2005. The petitioner gave a reply to the show cause notice alleging that the work was held up due to building shuttering material reinforcement workshop of main contractor which was coming in the layout of the road; work was also held up due to wanter tank, batching plant, generator shed of main contractor on west side of the building and because of petrol pump and electric poles of NSG authorities and it was also held up due to M.S. Steel stone cutting machine and scaffolding material. The petitioner sought extension of time up to 16th January, 2006 without levy of compensation alleging that the government had not suffered any liquidated damages and the petitioner also undertook not to claim anything extra over and above the justified delays in the work. The plea of the petitioner was considered and thereafter an amount of Rs.43,765/- has been levied which is challenged by the petitioner seeking quashing of the letter/order dated 17th May, 2006.