The Principal District Judge here has ordered confiscation of the Public Works Department (PWD) office complex in Madurai over non-settlement of money to a Kozhikode-based construction company.
K.M. Moideen Kunhi, partner of Chandragiri Construction Company in Kozhikode, filed a petition at the district court here stating that the firm was awarded the contract to build a reservoir at Sirumalaiyar in Nilakottai taluk of Dindigul district.
The estimate was Rs. 3.55 crore but the work was completed at Rs. 3.30 crore, the construction firm told the court.
Thereafter, the Chief Engineer of PWD-Madurai Region, the Superintending Engineer of PWD, Periyar Vaigai Basin Circle in Madurai, and the Executive Engineer of PWD, Manjalar Basin Division in Periyakulam, reportedly gave additional work and promised to pay the additional cost to the firm but disputes and differences arose between the two parties after the work was completed.
An arbitrator under alternative dispute resolution passed an order on April 14, 2007 directing the PWD officials to pay Rs. 2,71,59,718 along with an interest of 18 percent per annum to the firm.
The principal district court in Madurai also confirmed the decree in an order dated August 31, 2009.
Then, the PWD officials filed an appeal in the High Court following which the interest was reduced to nine percent per annum from 2007 to 2012.
Along with the interest, the PWD was directed to pay Rs. 3,99,31,042 to the construction firm.
When the PWD failed to pay the default amount, the construction firm filed an execution petition at the district court here seeking to confiscate the property, auction it and to retrieve the default amount.
Principal District and Sessions Judge B. Gokuldas, on hearing the case, directed that the ground and premises having the office of PWD’s Chief Engineer at Pennycuick Complex in Madurai be confiscated.
