Contractor asked to pay Rs 24 lakh for substandard work

However, on October 30, 2022, the contractor abandoned the construction work without assigning any reason and remained unapproachable.
Image used for representational purpose only.
Image used for representational purpose only.

SAMBALPUR: The District Consumer Disputes Redressal Commission, Sambalpur has slapped a compensation order of Rs 24 lakh on a civil contractor for substandard work, disobedience of court order and abrupt stoppage of construction work on Tuesday.

According to the petition, the complainant Abani Kumar Sahu had entered into an agreement with the contractor Saroj Kumar Nath on April 4, 2022 for a basement plus two-storey building and the terms and conditions stipulated in the agreement. While the cost of construction was fixed at Rs 49,94,300 for which the complainant had funded Rs 23,00,550 on his own and took a loan of Rs 25 lakh in August 2022 from Utkal Grameen Bank.

The complainant paid Rs 30 lakh to the contractor in eight phases on different dates between April and November 2022,  through NEFT. However, on October 30, 2022, the contractor abandoned the construction work without assigning any reason and remained unapproachable.

After much difficulty, the complainant caught hold of the contractor and pointed out the defects in construction work such as leaking roof and ground floor and use of substandard construction materials. Though the contractor assured to resolve the issues, he became vindictive and stopped construction again. While the work came to a complete halt from October 30, 2022, aggrieved by the unfair trade practice by the contractor, Sahu lodged the complaint on December 26, 2022.

Though the commission subsequently passed order and directed the contractor to complete the building by March 28, 2023, the latter did not comply. He claimed that the complainant did not pay him the balance amount of Rs 8.00 lakhs for the work done, due to which the contractor was compelled to stop the work. He also denied the allegation of deficiency in service as well as unfair trade citing that the complaint is liable to be dismissed as not maintainable and with cost.

Later, during the legal course, two engineers proposed as witnesses by both the parties were also examined following which the commission found that, the contractor had taken money in advance from the complainant without completing the agreed level of work as per the agreement. The court also did not accept the contractor’s claim of discontinuing construction due to non-payment of dues. Moreover, the court also found that the contractor had charged an excess amount than the built up area up to the tune of Rs 1,60,000 and is liable to refund it.

The commission ordered the contractor to refund Rs  1,60,000 to the complainant with 9% interest with effect from March 28, 2023, defaulting which, the amount will have an interest of 12% per annum until realisation. Moreover, for non-compliance of the order dated December 27,2022, the contractor was directed to pay a compensation of Rs 24 lakh to the complainant.

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