HC directs NBCC to pay Rs 1.24 cr to Hombale Constructions within four weeks

NT Correspondent

Bengaluru: The High Court of Karnataka has directed the National Buildings Construction Corporation (NBCC) to pay Rs.1.24 crores to Hombale Constructions within four weeks for constructions carried out in 2020.

The order came in a petition filed by the company which was heard by Justice M Nagaprasanna.

Hombale Constructions in the petition arrayed NBCC, Department of Chemicals and Petrochemicals, Central Institute of Petrochemicals, Engineering and Technology, Advanced Polymer Design and Development Research Laboratory and Department of Commerce, Karnataka as the respondents.

The construction company claimed that the first three respondents were jointly and severally liable to pay Rs.1,30,82,476.58 with interest of 24 per cent per annum from December 1, 2020. Senior counsel Uday Holla, appearing for the company, submitted that a tender was issued by NBCC for construction of the Research and Development Wing i.e, Advanced Polymer Design and Development Research Laboratory.

Hombale Constructions was awarded the contract and the work was completed to the satisfaction of the respondents. The respondents also handed over a performance report to Hombale.

“Despite the performance of the petitioner being satisfactory, the amount that was due to the petitioner was not released. Representations to that effect went unheeded,” the HC was informed.

With no other option, the company approached the HC.

He argued that there was no justification to withhold the money which was payable and when the work was done to the satisfaction of the respondents.

Learned counsel for the respondents submitted that if reasonable time was granted, an amount close to Rs.1,24,00,000 which is to be paid to Hombale Constructions, would be fulfilled.

The submission was placed on record by the HC as an undertaking. The HC then ordered “Respondent Nos.1 to 4 shall abide by the undertaking as aforesaid and release the petitioner the amount that he is in due, which according to the learned senior counsel is close to Rs.1.24 crores.”

Four weeks’ time was granted to pay the amount. The HC kept open the plea of Hombale Constructions seeking interest which it said could be sought in the appropriate forum available by law.