the goan I network
MARGAO
The Municipality has just two weeks at its disposal to deposit 50 per cent of an arbitration award along with interest, which according to the decree holder is presently pegged at a whopping Rs 1.60 crore, in the Goa Bench of the Bombay High court or risk vacation of the stay granted by the HC, which may set in motion the process towards the attachment of Municipal properties. In fact, the Principal District Judge, Margao had at the last date of hearing on October 24 had held that the Municipality should submit a bank guarantee of the entire pending amount if the civic body seeks to avoid the order towards the attachment of property.
The Goan understands that the matter pertains to arbitration award dated June 1, 1996 passed in favour of Ms Group Construction which was engaged to construct Phase I of the Gandhi market in the 80's. The total arbitration award had worked out around Rs 7.46 lakh when it was passed in 1996, throwing up questions in the corridors of the Municipality how come officials as well as successive Councils literally slept over the payment of the award, by allowing the amount to pile up to Rs 1.60 crore.
Sources in the know informed that while the civil judge had passed an order pertaining to the award on November, 2008, the proceedings before the district court were filed only two years later on May 6, 2010, with an application for condonation of delay.
On October 24 last when the matter had come up before the district court, the decree holder had made a strong plea before the court for the attachment of the municipal property. But, since the application for attachment did not mention the property to be attached, the judge had reportedly directed the decree holder to make a detailed application specifying the exact number of properties to be attached by the court.
Hectic activity has been witnessed in different sections of the civic body since the High Court pronounced the order staying the district court's order as well as the direction to the civic body to deposit 50 per cent of the arbitration award along with the interest.
The Goan understands that the Administration and Accounts and Taxation section has moved the file to the Municipal technical section to arrive at the 50 per cent amount as per the High Court order so that the amount is deposited in the HC within two
weeks time.
When The Goan called up the Margao Municipal Council Chairperson Babita Angle Prabhudesai to shed light on the legal proceedings and the prospects of the Municipality required to pay a huge amount in the arbitration case, she said, she has asked for details from the concerned civic officials.
"I have been told that the Council will have to pay a huge amount of money to the contractor, who had constructed the Gandhi market. It appears to be a case which has been pending over the last two decades. I have asked for details from the concerned officials," she said.
FACT FINDING
The matter pertains to arbitration award dated June 1, 1996 passed in favour of Ms Group Construction which was engaged to construct Phase I of the Gandhi market in the 80's
The total arbitration award had worked out around Rs 7.46 lakh when it was passed in 1996
The Municipality slept over the payment of the award, by allowing the amount to pile up to Rs 1.60 cr
