(Suit No 214 / 2003)
1. The Society concluded a contract with M / S Chand Construction Co. on 26 Jun 1998 for ‘External Electrification & Sub Station Works’ at the Society premises.
2. Having executed the work, M / S Chand Construction Co. submitted the pre-final bill of Rs 11, 12, 886/- to the Society on 10 Oct 1999 for payment.
3. The Society issued an Account Payee Cheque No 484239 dated 30 Mar 2000 for Rs 11, 12, 886/- to M / S Chand Construction Co. with a request that the Cheque be presented to the bankers after funds become available in the Society’s account.
4. The Society allowed the validity of the period of the Cheque to lapse without depositing the required amount in its account.
5. M / S Chand Construction Co. continued to remind the Society of the pending dues and finally, on 31 Jan 2001, pointed out that another amount of Rs 3, 58, 140/- being security was also refundable by the Society to M / S Chand Construction Co. The Society was, therefore, requested to make the payment of Rs 14, 71, 020/- to M / S Chand Constructions Co. This amount was also checked and verified to be correct by the Society’s architect.
6. On 01 Nov 2001, the Society admitted before Shri BD Arora, Sole Arbitrator hearing the case that the claim of M / S Chand Construction Co. was correct. The hearing by the Sole Arbitrator was adjourned 19 times on request of the Society.
7. On 18 Aug 2003, the Sole Arbitrator directed the Society to pay Rs 14, 71, 026/- alongwith interest @12 % per annum from 01 Nov 2000 till the date of payment to M / S Chand Construction Co.
8. The Society appealed against the award of Sole Arbitrator in the court of Addl District & Session Judge Shri Vimal Kumar Yadav and the award was set aside on technical grounds, on 07 Sep 2005.
9. M / S Chand Construction Co. filed an appeal in the High Court of Delhi against the order of Addl District & Sessions Judge Shri Vimal Kumar Yadav and set aside the latter’s impugned order dated 07 Sep 2005. The High Court, on 17 Dec 2007, upheld the award of Sole Arbitrator and directed the Society to make the payments as directed by the Sole Arbitrator and additional Rs 10,000/- for legal costs paid by M / S Chand Construction Co.
10. M / S Chand Construction Co. applied to the Court of District Judge, Delhi for execution of the High Court judgment and decree dated 17 Dec 2007 and the request includes attachment of the Society’s Office and movable properties like furniture, computers, vehicles for recovery of a sum of Rs 29, 64, 656.13 with post decretal interest @ 12 % p.a. from 01 Mar 2008 on the sum of Rs 29, 64, 656.13 till the date of payment.
11. As per the ‘Show Cause Notice’ dated 19 Jul 2008 issued to the MC, the case will come up for hearing on 18 Aug 2008 in the Court of Shri BS Chumbak, ADS Judge, Tis Hazari Court, Delhi. This is also likely to cost each member Rs 19, 000/-
12. Apart from the above case, and the case against Rana Constructions, that the Society has lost due to amazing inefficiency and incompetence of the MC imposing avoidable financial burden on the members, there are other legal cases that the present MC has resolutely refused to disclose to the members. It may be noted that the Single Judge High Court order against the Society was passed on 17 Dec 2007 and the last General Body Meeting was held eight days later on 25 Dec 2007. Yet, neither the President, Shri K Subramaniam nor the Secretary, Shri YS Mathur thought it prudent to inform the members and invite constructive suggestions. Infact, apprehending foul play on part of the MC, details of the court cases pending against the Society have been demanded from the MC from time to time; without any positive response.
1. The Society concluded a contract with M / S Chand Construction Co. on 26 Jun 1998 for ‘External Electrification & Sub Station Works’ at the Society premises.
2. Having executed the work, M / S Chand Construction Co. submitted the pre-final bill of Rs 11, 12, 886/- to the Society on 10 Oct 1999 for payment.
3. The Society issued an Account Payee Cheque No 484239 dated 30 Mar 2000 for Rs 11, 12, 886/- to M / S Chand Construction Co. with a request that the Cheque be presented to the bankers after funds become available in the Society’s account.
4. The Society allowed the validity of the period of the Cheque to lapse without depositing the required amount in its account.
5. M / S Chand Construction Co. continued to remind the Society of the pending dues and finally, on 31 Jan 2001, pointed out that another amount of Rs 3, 58, 140/- being security was also refundable by the Society to M / S Chand Construction Co. The Society was, therefore, requested to make the payment of Rs 14, 71, 020/- to M / S Chand Constructions Co. This amount was also checked and verified to be correct by the Society’s architect.
6. On 01 Nov 2001, the Society admitted before Shri BD Arora, Sole Arbitrator hearing the case that the claim of M / S Chand Construction Co. was correct. The hearing by the Sole Arbitrator was adjourned 19 times on request of the Society.
7. On 18 Aug 2003, the Sole Arbitrator directed the Society to pay Rs 14, 71, 026/- alongwith interest @12 % per annum from 01 Nov 2000 till the date of payment to M / S Chand Construction Co.
8. The Society appealed against the award of Sole Arbitrator in the court of Addl District & Session Judge Shri Vimal Kumar Yadav and the award was set aside on technical grounds, on 07 Sep 2005.
9. M / S Chand Construction Co. filed an appeal in the High Court of Delhi against the order of Addl District & Sessions Judge Shri Vimal Kumar Yadav and set aside the latter’s impugned order dated 07 Sep 2005. The High Court, on 17 Dec 2007, upheld the award of Sole Arbitrator and directed the Society to make the payments as directed by the Sole Arbitrator and additional Rs 10,000/- for legal costs paid by M / S Chand Construction Co.
10. M / S Chand Construction Co. applied to the Court of District Judge, Delhi for execution of the High Court judgment and decree dated 17 Dec 2007 and the request includes attachment of the Society’s Office and movable properties like furniture, computers, vehicles for recovery of a sum of Rs 29, 64, 656.13 with post decretal interest @ 12 % p.a. from 01 Mar 2008 on the sum of Rs 29, 64, 656.13 till the date of payment.
11. As per the ‘Show Cause Notice’ dated 19 Jul 2008 issued to the MC, the case will come up for hearing on 18 Aug 2008 in the Court of Shri BS Chumbak, ADS Judge, Tis Hazari Court, Delhi. This is also likely to cost each member Rs 19, 000/-
12. Apart from the above case, and the case against Rana Constructions, that the Society has lost due to amazing inefficiency and incompetence of the MC imposing avoidable financial burden on the members, there are other legal cases that the present MC has resolutely refused to disclose to the members. It may be noted that the Single Judge High Court order against the Society was passed on 17 Dec 2007 and the last General Body Meeting was held eight days later on 25 Dec 2007. Yet, neither the President, Shri K Subramaniam nor the Secretary, Shri YS Mathur thought it prudent to inform the members and invite constructive suggestions. Infact, apprehending foul play on part of the MC, details of the court cases pending against the Society have been demanded from the MC from time to time; without any positive response.
Update: 18 Aug 2008
It may be recalled that M / S Chand Construction Co. had applied to the Court of District Judge, Delhi for execution of the High Court judgment and decree dated 17 Dec 2007. The Court of Shri BS Chumbak, ADS Judge, Tis Hazari Courts, Delhi had issued a ‘Show Cause Notice’ to the Society on 19 Jul 2008 and fixed 18 Aug 2008 as the date for hearing / filing the Society’s reply. On 18 Aug 2008, neither any member of the MC nor the Society’s counselor was present in the Court to present the Society’s stand. The Judge has ordered his bailiff to visit the Society on 01 Oct 2008 to prepare an inventory of the items, including the Society office, that can be attached to recover the dues owed to M/S Chand Construction Co. The Court has set 31 Oct 2008 as the date for passing the final order for attachment of the Society’s effects.
On 10 Oct 2008, in a meeting of the members in the Society premises, Mr YS Mathur was questioned about the course of action in the case being adopted by the MC. He had informed that the MC would deposit Rs 10 Lakhs in the Court as part payment and inform the Court of impending MC elections and seek some more time to file the reply / make the payments. In hind site, this was an obvious ploy to deceive the members present.
On 10 Oct 2008, in a meeting of the members in the Society premises, Mr YS Mathur was questioned about the course of action in the case being adopted by the MC. He had informed that the MC would deposit Rs 10 Lakhs in the Court as part payment and inform the Court of impending MC elections and seek some more time to file the reply / make the payments. In hind site, this was an obvious ploy to deceive the members present.
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