ENGINEERING PROJECTS (INDIA) LIMITED Vs. KMV PRASAD RAO

JUDGEMENT

(1.) The first appellant is a Government of India Enterprise engaged in executing Civil, Mechanical, Infrastructure Development etc. works. The 2nd appellant is its Managing Director. The 1st respondent is a Company dealing in construction of civil works.

(2.) First appellant was awarded contract by M/s. Singareni Collieries Company Limited (SCCL) to execute Part-I (RG-I Area) for construction of quarters with Civil, Electrical, Plumbing and all other required accessories on back to back basis and also works pertaining to RG-II Area on back to back basis as per designs and drawings provided by SCCL. Appellant appointed 1st respondent as subcontractor to execute the RG-I area work. The work was awarded on 15/2/2005 with a completion period of 18 months. Later it was also entrusted with RG-II works.

(3.) While appellants allege that 1st respondent delayed completion of work, the 1st respondent alleges that 1st appellant was responsible for delay in executing the work. According to 1st respondent, the work was completed in May, 2007 and the defect liability period expired in May, 2008. First respondent alleges that he was subjected to several impediments and delays due to lack of cooperation and coordination by the 1st appellant, illegally withheld amounts, due and payable to 1st respondent.