Key Facts
In a significant ruling, the Dharamshala Civil Court has directed the management of a hydel project in Kangra district to pay contractor Prem Thakur an outstanding amount of ₹9.19 lakh. The court also imposed 9% annual simple interest on the dues and ordered the project management to bear the litigation costs. The decision comes after an eight-year-long payment dispute.
Details of the Case
Contractor Prem Thakur, a resident of Lahaul-Spiti, filed a civil suit in 2018 against the hydel project located under Dharamshala tehsil. He claimed that in 2016, he was assigned work on a 3 MW project, including PCC work, tunnel lining, and labor supply. Despite completing the work, the project management withheld ₹9,19,671, leading to the legal action.
Court Proceedings
During the hearing, the project management argued that full payment had already been made to the contractor. However, they failed to produce any documentary evidence or records to support their claim. In contrast, the contractor presented bills, payment details, and demand-related documents. Senior Civil Judge Dr. Hakeekat Dhandha observed that the complete payment record was within the special knowledge of the defendants, yet they could not prove it. After examining all facts and evidence, the court ruled in favor of the contractor.
Impact and What Readers Should Know
This judgment underscores the importance of maintaining proper payment records in contractual works. It also serves as a reminder to project management entities that failure to provide evidence can lead to adverse legal consequences. For contractors, the case highlights the need to preserve all bills and correspondence to safeguard their interests.
FAQ
- Q: What was the dispute about? A: Contractor Prem Thakur had not been paid ₹9.19 lakh for work done on a 3 MW hydel project in 2016.
- Q: What did the court order? A: The court ordered the project management to pay the outstanding amount with 9% annual simple interest and legal costs.
- Q: Why did the court rule in favor of the contractor? A: The project management failed to provide evidence of full payment, while the contractor submitted bills and payment records.